Securing European Defence Capabilities
The Defence Foundation is an independent, mission-driven investment foundation that strengthens Europe’s security and technological edge. It invests in listed European defence and dual-use companies and channels the portfolio’s yield into studies, research, projects, and early-stage ventures that advance European defence capability, resilience, and industrial competitiveness.
Investment Thesis
Focus
Publicly listed European defence and dual-use companies across aerospace, land, naval, cyber, space, sensors, energetics, and critical sub-systems.
Objective
Generate a reliable, policy-aligned cash yield (dividends and interest) to fund non-dilutive grants and catalytic investments.
Approach
Long-only, fundamentals-driven portfolio with risk controls by country, sub-sector, and single-name exposure; optional overlay for downside protection.
Stewardship
Active shareholder engagement on supply-chain resilience, security of supply, export-control compliance, sustainability in operations, and talent pipelines.
Impact Model
Where the yield goes
1
Independent studies and policy-relevant research;
2
Applied R&D and demonstrator projects with European universities, SMEs, and primes;
3
Seed-stage support for dual-use startups (grants, convertible notes, or sidecar VC partnerships);
4
Skills and test-range initiatives that unlock bottlenecks in the defence innovation ecosystem.
Additionality
The Foundation fills early, risky, or pre-procurement gaps that traditional capital and public programs often don’t cover.
Measurable outcomes
TRL progression, time-to-prototype, follow-on funding crowd-in, adoption by end-users, and contribution to European security-of-supply.
“The Foundation fills early, risky, or pre-procurement gaps that traditional capital and public programs often don’t cover.”
Program Streams
Studies & Foresight
Commissioned analyses on force drivers, supply-chain risk, standards/interoperability, and energy/logistics resilience.
Applied Projects
6–18 month sprints to validate concepts, build demonstrators, or scale pilot lines with consortia of SMEs and labs.
Venture Catalysts
Micro-grants and pre-seed tickets for dual-use startups; access to mentors, test users, and certification roadmaps.
Open Challenges
Prize calls on priority problem sets (e.g., counter-UAS, contested logistics, secure positioning, rapid repair, novel energetics).
Governance & Integrity
Independence
Board of Trustees with defence, finance, academia, and ethics backgrounds; Investment Committee and Grants Committee with strict conflict-of-interest rules.
Eligibility firewall
Portfolio decisions are separated from grantmaking; beneficiaries cannot influence investment allocations.
Compliance
Adheres to EU and national regulations (export controls, sanctions, AML/KYC); publishes an annual impact and stewardship report.
Ethical guardrails
Focus on defence and deterrence capabilities consistent with international law and allied commitments.
“Ethical guardrails: Focus on defence and deterrence capabilities consistent with international law and allied commitments.”
Funding Instruments
Grants
For pre-commercial research and studies.
Matching Funds
To unlock co-finance from public programs or primes.
Convertible Support
For dual-use startups where recycling returns can amplify future impact.
Procurement-Readiness Aid
Certification, testing, and standards support to shorten time-to-adoption.
Partnership Network
Collaborates with universities, test centers, national innovation agencies, NATO-aligned bodies, prime contractors, and specialist venture funds. The Foundation seeks to complement—not duplicate—existing public instruments by moving quickly, de-risking early phases, and connecting promising solutions to end-users.
KPIs (examples)
- Yield deployed vs. administrative cost ratio
- Share of funding to SMEs and new entrants
- TRL uplift per euro deployed
- Follow-on capital mobilized
- Adoption/fielding milestones within 24–36 months
Typical Beneficiaries
Research groups, SME consortia, dual-use startups, and standardization efforts working on areas such as contested logistics, secure comms and PNT, resilient energy for deployed forces, advanced materials, autonomy, EO/ISR, and munitions/sub-systems.
