VC firms Earlybird and AVP today announce the launch of E2D, a €500 million European dual-use and DefenceTech growth fund – one of the most significant Franco-German investment collaborations in the European tech ecosystem.
E2D will be a growth-stage fund, targeting around 20 companies at an average ticket size of approximately €25 million, with a dedicated team drawn from Earlybird and AVP working exclusively for the fund. Its first close will take place on June 30th.
“We look forward to backing the best European high-growth, deep tech companies that will be instrumental in closing defence capability gaps while also addressing commercial markets, delivering decisive and persistent operational gains to European armed forces as well as primes. This will foster a more resilient and sovereign European ecosystem and ultimately unlock superior value for investors,” says Roland Manger, co-founder of Earlybird.
The launch of the E2D growth fund reflects a broader 2026 trend in European dual-use and DefenceTech investing, where capital formation is increasingly concentrating around sovereign capabilities in space systems, surveillance infrastructure, and industrial resilience technologies.
Recent activity shows significant funding momentum across the sector, including large-scale later-stage rounds such as ICEYE’s €450 million Series F alongside a cluster of smaller growth and Series A financings in companies such as ATMOS Space Cargo, Kelluu, Sybilla Technologies, Uplift360, and SPREAD AI.
Collectively, these transactions indicate a developing financing pipeline spanning early commercialisation through to scale-up capital requirements.
Within this context, E2D positions itself as a dedicated growth-stage vehicle intended to bridge the expansion gap for European DefenceTech companies transitioning from validated technologies into large-scale deployment across defence and dual-use markets.
“European defence is at a historic turning point, requiring a new generation of technology champions to safeguard sovereignty,” adds Benoit Fosseprez, General Partner, AVP. “By partnering with Earlybird in this Franco-German alliance, we will be able to move fast and invest in the companies that will have the greatest potential impact. The best European defence companies need investors who bring real sector conviction and pan-European reach; that’s exactly what this partnership delivers.”
Providing capital at scale, E2D looks to fund the next wave of technological innovation created by European growth-stage companies, fosters new technology adoption across the continent’s armed forces and strategic industries – supporting European sovereignty and economic growth.
E2D launches at a moment of notable political and strategic momentum:
This marks one of the largest structural shift in European security spending in a generation. Yet, European defence and dual-use fast-growth companies have historically been forced to look to US investors to scale, leaving capital, talent, and IP outside the continent. E2D is designed to change that.
AVP and Earlybird outline that they contribute complementary strengths to the fund: AVP’s transatlantic investment platform and growth-stage expertise, and Earlybird’s long-standing track record in European Deeptech.
The fund’s partner team also includes investors who have invested in dual-use and defence technology for over a decade, well before most European funds could, given prevalent sector restrictions that LPs have only recently begun to lift.
Its investment focus spans across all critical domains – space, air, land, maritime, and subsurface – backing technology businesses with modern operating models, rapid execution, and clear mission focus across both defence-native and dual-use applications.
The fund will also feature an international strategic committee comprising of military and industrial leaders from the armed forces, NATO, and several leading European prime players.
