Europe is placing increasing emphasis on strengthening its defence capabilities through homegrown innovation as governments, industries, and investors work to reduce dependence on external technologies. Advances in artificial intelligence, autonomous systems, space technologies, and next generation defence platforms are reshaping modern security, creating growing demand for companies capable of delivering dual use technologies that serve both civilian and military applications. To accelerate this transformation, venture capital firms are launching larger specialised investment vehicles designed to support high growth European defence technology companies. The newly established E2D fund has taken an important step in that direction by securing Airbus Defence and Space as its anchor investor while announcing its first portfolio company.
Earlybird and AVP have confirmed that Airbus Defence and Space has become the anchor limited partner in E2D, a €500 million growth fund dedicated to dual use and defence technologies.
The announcement comes shortly after the launch of the fund, which has been created to invest in Europe’s next generation of strategic technology companies operating across space, aviation, land systems, maritime platforms, and subsea technologies.
Alongside the new strategic investment, E2D has also completed its first investment in French defence technology company Alta Ares.
Accelerating Europe’s Defence Innovation
E2D has been established as a specialised growth fund jointly owned and advised by Earlybird and AVP.
The fund aims to provide growth stage European companies with access to large scale capital at a stage where many promising technologies often struggle to secure long term financing.
With a target size of €500 million, E2D plans to build a portfolio of approximately 20 companies, investing around €25 million in each business on average.
Its broader objective is to accelerate the commercialisation of advanced technologies while strengthening European industrial competitiveness, technological sovereignty, and defence capabilities.
Airbus Strengthens Strategic Partnership
The participation of Airbus Defence and Space as the fund’s anchor investor represents an important endorsement of Europe’s growing dual use technology ecosystem.
According to the fund managers, closer collaboration between investors, industrial leaders, and innovative startups is becoming increasingly important as Europe seeks to strengthen strategic autonomy.
Beyond financial backing, Airbus brings significant industrial expertise and access to large scale defence programmes that can support the commercial development of emerging technologies.
The partnership is expected to create stronger connections between innovative startups and established defence manufacturers.
Alta Ares Becomes the First Portfolio Company
E2D has selected French company Alta Ares as the fund’s inaugural investment.
Alta Ares develops artificial intelligence powered hardware and software technologies supporting intelligence, surveillance, reconnaissance, and counter unmanned aerial system missions.
Its platform has been designed to remain hardware agnostic, allowing integration across multiple operational environments while supporting advanced situational awareness and mission planning.
The company focuses on technologies that improve operational effectiveness through intelligent data analysis and autonomous capabilities.
Expanding European Counter Drone Capabilities
The investment follows the signing of a memorandum of understanding between Airbus Defence and Space and Alta Ares.
The agreement supports joint development and integration of next generation European counter drone technologies into Airbus’ battle management platform.
Counter unmanned aerial systems have become an increasingly important area of defence innovation as governments seek more effective methods for detecting, tracking, and neutralising emerging aerial threats.
The collaboration demonstrates how investment and industrial partnerships can accelerate deployment of advanced technologies into operational defence systems.
Supporting Europe’s Next Generation of Technology Leaders
Through E2D, Earlybird and AVP aim to strengthen Europe’s innovation ecosystem by providing growth capital to companies developing strategically important technologies.
The fund intends to support businesses capable of delivering advances across aerospace, autonomous systems, defence, security, and other critical industries where technological leadership is becoming increasingly important.
By combining long term investment with industrial partnerships, E2D seeks to accelerate technology adoption while helping European companies compete globally.
With Airbus Defence and Space joining as anchor investor and Alta Ares becoming its first portfolio company, the fund begins its mission of backing innovative businesses that can strengthen Europe’s defence capabilities, industrial resilience, and technological independence while supporting the next generation of dual use innovation.
