EIF commits €50 million to Join Capital Fund III to support European defence and dual-use deeptech

The European Investment Fund (EIF) has committed €50 million to Join Capital’s third venture capital fund, marking the institution’s largest investment in the defence sector so far. The announcement was made during the EIB Group Forum in Luxembourg as European policymakers and financial institutions increasingly focus on strengthening the continent’s defence industrial capacity. 

The investment is supported by the InvestEU Defence Equity Facility, an EU instrument designed to channel capital into venture funds that support companies developing defence and dual-use technologies. The mechanism is intended to strengthen Europe’s defence technological and industrial base by mobilizing private investment alongside public funding. 

Join Capital’s Fund III is targeting a total size of €235 million and plans to invest in approximately 25 early-stage companies across Europe. The fund focuses on deeptech firms working on capabilities relevant to defence, security, and space sectors, including technologies with both civilian and military applications. 

According to the European Commission, supporting specialized venture capital funds is a key element in strengthening Europe’s financial ecosystem for defence innovation. Officials indicated that such investments are intended to help startups and small companies scale their technologies within Europe rather than seeking growth capital outside the region. 

Join Capital, a Berlin-based venture firm, has previously backed a number of early-stage companies developing advanced technologies relevant to security and defence. These include firms working on fiber-optic sensing systems for critical infrastructure, quantum-secure communications, electronic payloads for space applications, and cybersecurity solutions. 

The funding commitment forms part of the broader InvestEU Defence Equity Facility, a €175 million initiative jointly financed by the European Defence Fund and the EIF. The instrument aims to catalyze more than €500 million in total investments in European companies developing advanced defence technologies and dual-use capabilities. 

The initiative is also linked to the EU Defence Innovation Scheme, which supports startups and small and medium-sized enterprises through accelerators, technology challenges, and other programs aimed at bringing emerging defence technologies to market.