European defence technology investor Expeditions has closed its second fund at €197 million, more than doubling its original target as BAE Systems, the European Investment Fund and US technology company Keysight Technologies joined NATO and Polish institutional investors in backing early-stage defence startups.
The Warsaw- and London-based firm had raised €100 million in a first close for Fund II in October 2025, targeting a final close target of €150 million. BAE committed €25 million to the fund as part of its Launchpad programme, its first investment as a limited partner in a European defence-tech venture fund.
The final close also brought in the European Investment Fund through its €175 million Defence Equity Facility, a financing mechanism dedicated to investing in defence venture fund, and Keysight Technologies. Existing investors include the NATO Innovation Fund and the Polish Development Fund PFR. The mix gives the fund backing from defence industry, national and European institutions and specialist venture investors as governments across Europe increase spending on military technology.
Expeditions plans to invest across up to 40 early-stage companies addressing what it describes as Europe’s critical defence capability gaps, with a focus on technologies including autonomy, AI, cybersecurity, quantum and communications. Its Fund II portfolio already includes companies such as Cambridge Aerospace, Frankenburg Technologies, UForce and Orqa. The firm also plans to open offices in Munich and Paris, adding to its existing presence in Warsaw and London.
The close follows a series of large investments into European defence technology by both specialist funds and major contractors. BAE committed €50 million to European defence venture funds in June, including its €25 million investment in Expeditions, while Lockheed Martin said in July it would earmark at least $100 million for UK and European startups through its own venture arm.
