Lockheed Martin is committing at least $100 million to UK and European defence technology startups and opening a London office for its venture capital arm, as European governments increase spending on military technology and seek to expand domestic defence capacity.
Lockheed Martin Ventures, founded in 2007 with $100 million in initial capital, now has $1 billion in global investment capacity after the company increased the fund from $400 million in April. The London office will allow the fund to engage earlier with European startups and build closer ties to the region’s defence technology ecosystem, Lockheed said.
Since its launch, the fund has invested more than $500 million in more than 120 companies, with more than 60 subsequently becoming Lockheed Martin suppliers. Those companies have received more than $750 million in contracts from Lockheed, according to the company. The fund has added 25 companies to its portfolio over the past two years.
Its European investments include Swiss weather-intelligence company Meteomatics, which received a strategic investment from Lockheed Martin Ventures in February 2024. Lockheed said it has already invested in several other European companies, with more deals expected to close soon.
The fund is looking at emerging technologies including quantum computing and sensing, autonomy and advanced manufacturing, according to Chris Moran, vice president and general manager of Lockheed Martin Ventures, who spoke to Breaking Defense at the Farnborough Air Show. According to Breaking Defense, Moran said the fund expects to review 300 to 500 investment opportunities and make investments in three to five European companies over the next few years.
“We are looking to invest in technologies that complement the company’s national security capabilities and help advance solutions to meet current and future customer mission needs, while further strengthening the transatlantic defence industrial base,” said Dan Tenney, Lockheed’s senior vice president of Global Business Development and Strategy. He said the investment strategy would evolve as technologies emerge and startup markets mature.
The move comes as major defence contractors increase their use of venture capital to gain access to early-stage technology. BAE Systems said in June it would commit €50 million to venture capital funds backing European defence technology startups, including funds managed by Lakestar and Expeditions.
