BAE Systems is committing €50 million to venture capital funds backing European defence technology startups, the second phase of its Launchpad programme aimed at accelerating the development and commercialisation of new defence technologies.
BAE will invest €25 million into Lakestar and Expeditions funds, which are allocating to European defence and technology companies.
The first phase of the Launchpad programme, an incubator to spin out some of BAE’s own defence technologies into independent businesses, was announced in February. It produced Rho-C, a company commercialising technology originally developed for BAE’s submarine programmes. The programme also gives startups access to customers in sectors including energy and advanced manufacturing.
“As a large defence company, we’ve always valued the capability and ingenuity that early-stage founders can bring to the table and these latest investments show that we’re serious about supporting them,” said Dave Ewing, BAE’s head of technology commercialisation.
Lakestar founder and chairman Klaus Hommels described Europe’s position as “pivotal” for its security and technological sovereignty, while Expeditions co-founder Mikolaj Firlej said the firm had been investing in European defence technology with that conviction for years.
BAE said Launchpad supports UK priorities around rapid technology incubation, sovereign capability and economic growth, while its broader ambition is to continue expanding the programme in line with its business priorities.
The investment puts BAE alongside other major defence contractors increasing their use of venture capital to access emerging technology. Lockheed Martin announced in July that it would earmark at least $100 million for UK and European defence startups through its Lockheed Martin Ventures arm, alongside opening a London office.
