Earlybird and AVP launch E2D, a €500M defence and dual-use growth fund

Earlybird and AVP have announced the launch of E2D, a €500 million growth-stage fund focused on defence and dual-use technologies. The fund will invest in European defence and deeptech companies and represents a collaboration between the two firms. Its limited partners include major financial institutions and corporates, with a first close scheduled for June 30.

The launch comes amid a significant increase in defence spending across Europe. France has committed €76 billion to defence investments, Germany €152 billion, while the European Union has outlined an €800 billion defence plan. Against this backdrop, E2D seeks to address a longstanding funding gap for European defence and dual-use companies, which have often relied on overseas investors to secure growth capital.

AVP and Earlybird bring complementary capabilities to the partnership, combining AVP's growth-stage and transatlantic investment experience with Earlybird's long-standing track record in European deeptech investing. The fund's team includes investors who have been active in the defence and dual-use technology sector for more than a decade.

European defence is at a historic turning point, requiring a new generation of technology champions to safeguard sovereignty. By partnering with Earlybird in this Franco-German alliance, we will be able to move fast and invest in the companies that will have the greatest potential impact.
The best European defence companies need investors who bring real sector conviction and pan-European reach; that's exactly what this partnership delivers,

said Benoit Fosseprez, General Partner at AVP.

E2D plans to invest in approximately 20 companies, with an average ticket size of around €25 million. The fund will focus on growth-stage businesses operating across key domains including space, air, land, maritime, and subsurface technologies, supporting both defence-focused and dual-use applications.

We look forward to backing the best European high-growth, deep tech companies that will be instrumental in closing defence capability gaps while also addressing commercial markets, delivering decisive and persistent operational gains to European armed forces as well as primes.
This will foster a more resilient and sovereign European ecosystem and ultimately unlock superior value for investors,

added Roland Manger, co-founder of Earlybird.

Beyond capital, the partnership aims to provide portfolio companies with access to a network of technology experts, operators, defence leaders, military procurement channels, and major industry players. The fund is also supported by an international strategic committee comprising military and industrial leaders from NATO, armed forces, and leading European defence companies.