BAE Systems announced plans to commit €50 million to venture capital funds that support European defense technology startups, expanding its efforts to accelerate disruptive innovation through its recently launched Launchpad program.
The UK-based defense company said the initiative builds on its longstanding investment strategy around emerging technologies and is intended to help develop next-generation capabilities for allied nations across Europe.
As part of the initiative, BAE Systems will initially invest €25 million into two venture capital funds managed by Expeditions and Lakestar. The funds are focused on backing founders and technologies developing advanced defense capabilities for Europe.
The investments represent the second phase of BAE Systems’ Launchpad program, which aims to fund early-stage ventures and spin out defense technologies into independent companies. The company said the program is designed to help move technologies beyond the prototype stage while supporting priorities around sovereign capability, rapid innovation, and economic growth.
BAE Systems added that Launchpad will continue to expand in alignment with the company’s business priorities, supporting additional startups and accelerating the development of new technologies. The initiative is also intended to provide startups with access to customers across industries such as energy and advanced manufacturing.
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“As a large defence company, we’ve always valued the capability and ingenuity that early-stage founders can bring to the table and these latest investments show that we’re serious about supporting them as they look to play their part in delivering the technologies of tomorrow.”
“Building on our long-standing investment in innovation, we recently set up Launchpad as a win-win, aiming to spin out some of our own defence technologies to commercial markets while also backing start-ups who can bring something new to defence. This latest step means we’re full steam ahead on making that a reality.”
Dave Ewing, Head of Technology Commercialization at BAE Systems
“Europe is at a pivotal moment in redefining its security and technological sovereignty and supporting the next generation of defence-tech founders will be critical to that effort.”
“BAE Systems’ investment is significant as it brings together capital, deep sector expertise and access to markets to accelerate the development and deployment of the capabilities Europe needs to remain secure in an increasingly complex world.”
Klaus Hommels, Founder and Chairman of Lakestar
“European defence-tech can drive the most transformative shift for our continent in a generation and Expeditions has been investing with this conviction for years. Our security can no longer be assumed; it has to be built.”
“Its architects will be the founders deploying innovative products at scale, in weeks and months rather than years, drawing on lessons from the frontline.”
“We are grateful to partner with BAE Systems in this endeavour. Our combined force, equipped with greater resources, will invest with the discipline and urgency our security demands.”
Dr. Mikolaj Firlej, Co-Founder and General Partner at Expeditions
