Keen Venture’s Defence Fund, Backed by the European Investment Fund, Somersaults
The European Investment Fund, part of the European Investment Bank (EIB) – has invested 40 million in Keen Venture Partners, a European venture capital fund based in the Netherlands that is investing in defense sector startups. Lacerenza's words and the reality
EIF’s first investment in a European defense venture capital fund goes to Keen Venture Partners.
On 22 May, the European Commission and the European Investment Fund (EIF – part of the European Investment Bank) announced a €40 million investment in the European Defence and Security Technologies Fund of the Dutch company Keen Venture Partners.
The European Investment Bank (EIB), jointly owned by the EU countries, is the world's largest multilateral financial institution by assets and the largest multilateral lender. Since last year, the EIB has stepped up its support for the security and defence sector, expanding the range of defence and security projects eligible for financing in early March.
Founded in 2014, Keen focuses on early-stage companies in the defense and security sector, particularly those developing technologies for cyber defense, artificial intelligence, robotics, autonomous systems and space security. As explained in a statement , Keen’s defense technology fund is currently in the fundraising phase with the aim of raising €125 million and plans to close its fund for the first time in the third quarter of 2025.
So public investment for the Dutch fund dedicated to “dual use” “in European NATO countries”.
Yet Giuseppe Lacerenza, partner of Keen, had declared that “We should stop financing defense only with taxpayers' money and also open up to private capital” during the Defense Investment Forum organized by Airpress and Formiche .
And it's not the first time…
All the details.
WHAT IS THE DEFENCE QUITY FACILITY
As mentioned, the EIF’s €40 million investment in Keen’s European Defence and Security Technologies Fund represents the first under the Defence Equity Facility and the InvestEU Space mandate.
The Defence Equity Facility is a €175 million initiative launched in January 2024, co-financed by €100 million from the European Defence Fund (EDF) and €75 million from the EIF.
AND WHAT DOES THE EIF DO?
Created in 1994, the EIF is part of the European Investment Bank (EIB) Group and does not finance companies directly, but works through financial intermediaries, such as banks, investment funds or other entities that provide loans, capital or guarantees. The main instruments used by the EIF include: guarantees and securitizations, private equity and venture capital and microfinance.
FUNDS FROM EIB AND EU
In particular, the EIF uses funds from: the EIB, the EU (for example through programmes such as COSME, Horizon Europe, InvestEU), national or regional governments and private investors.
THE GOAL
“Our investment in the European Defence and Security Technology Fund Keen underlines our commitment to strengthening the European security landscape. By supporting innovative companies in this crucial sector, we not only foster technological advances, but also improve Europe’s overall security and resilience,” explained Marjut Falkstedt, EIF Chief Executive.
The Fund's investments will be pan-European, with exposure to the United Kingdom, Türkiye and Norway.
“This investment in Keen Ventures is an important milestone, demonstrating our ambition to improve access to finance for the defence industry, and in particular for new entrants to the sector,” commented European Commissioner for Defence and Space Andrius Kubilius.
WHAT KEEN VENTURE PARTNER DOES
With offices in Amsterdam and London, the venture capital fund has established a strong presence in the defense and advanced technology sectors. “A stronger and more secure Europe needs the resourcefulness and grit that only entrepreneurs can bring,” said Keen partners Alexander Ribbink and Giuseppe Lacerenza (pictured).
The fund tracks more than 800 European defense technology companies, the company says, more than any other European fund. In addition, Keen has established a high-level European advisory board with proven defense technology investing experience, composed of renowned advisors with military, business and defense technology policy experience. There is room within the fund for larger investors with defense technology experience, the statement says.
THE ADVISORY COMMITTEE
For the new defense fund, Keen has established a 13-member advisory board, which includes leading figures such as Jaap de Hoop Scheffer, former Secretary General of NATO, and Kajsa Ollongren, former Minister of Defense and Deputy Prime Minister of the Netherlands. This board brings together a wealth of military, political and defense industry experience, reinforcing the strategic vision of the fund, the company says.
KEEN FUND DEFENSE INVESTMENTS
Keen Venture Partners’ portfolio companies in the defense market include Avalor AI, which produces software used to oversee complex military missions involving drones and works with the Dutch Ministry of Defense. Other Keen investments include cyber threat intelligence firm EcleticIQ and radar perception firm PercivAI.
PUBLIC FUNDS YES OR NO?
“The investment of the European Investment Fund represents a significant contribution to becoming one of the leading funds in Europe, which will support approximately 20-25 startups from the seed phase to Series B”, explains the Dutch fund in the note released.
In fact, the European Investment Fund (EIF) has already supported Keen Venture Partners in 2021 with €30 million in the launch of its second fund, which reached its first close at €120 million. Financing to support SMEs across the EU, in line with Keen's first fund in 2016, also supported by the EIF under the European Commission's Cosme programme.
The financing is supported by the European Fund for Strategic Investments (EFSI), the main pillar of the European Commission's Investment Plan for Europe.
And today the Dutch fund explains that “Startups and scale-ups, led by entrepreneurs and backed by venture capital, can play an important role in accelerating innovation and making new technologies available at the forefront faster”.
According to Giuseppe Lacerenza (formerly of McKinsey), “strengthening Europe’s defense and security through private capital, combined with the ingenuity and perseverance of entrepreneurs, is just the beginning. We are proud to see the EIF play a catalytic role in mobilizing private investment for this vital cause.” “For those with capital, contributing to the Defense of our societies is not only a way to protect their assets and a moral duty, but also a unique economic opportunity,” continued the Italian Lacerenza, quoted in the “In Defense” column by Airpress in the daily newspaper La Verità: “We should stop financing defense solely with taxpayers’ money,” Lacerenza of the fund emphasized according to the Airpress report.
Private capital therefore but with a percentage of public funds.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/spazio-e-difesa/le-capriole-del-fondo-per-la-difesa-di-keen-venture-sostenuto-dal-fondo-europeo-per-gli-investimenti/ on Tue, 27 May 2025 04:25:11 +0000.