85% of NATO Defence Tech Funding Went to the US. AVP and Earlybird Just Raised €500M to Change That
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New €500 million growth vehicle E2D aims to close Europe’s DefenceTech scaling gap
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 …
85% of NATO defence tech funding went to the US. AVP and Earlybird just raised €500M to change that
Since 2019, the US has captured around 85% of NATO defence-tech venture funding — Europe accounted for just 6.2% in 2025 despite defence budgets surging across the continent. AVP and Earlybird have started E2D, a €500M growth fund that plans to invest about €25M each in around 20 European defence and dual-use tech companies. The fund is prioritising semiconductors, AI, New Space, drones, and directed energy, with a first investment expected by s…
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The growth vehicle raised by the French fund and its German partner will invest in some 20 European technology companies. A first closing is expected by the end of June.

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