AVP and Earlybird launch E2D, a European dual-use and defence fund
Earlybird and AVP have launched E2D, a €500 million European dual-use and defence technology growth fund – one of the most significant Franco-German investment collaborations in the European tech ecosystem. The fund’s limited partners include large financial institutions and corporates, and its first close will take place on 30th June.
E2D launches at a moment of unprecedented political and strategic momentum. France has committed €76 billion to defence, Germany €152 billion, and the EU has outlined an €800 billion European defence plan – the largest structural shift in European security spending in a generation. Yet, European defence and dual-use fast-growth companies have historically been forced to look to US investors to scale, leaving capital, talent, and IP outside the continent. E2D is designed to change that.
“European defence is at a historic turning point, requiring a new generation of technology champions to safeguard sovereignty,” said Benoit Fosseprez, General Partner, AVP. “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.”
AVP and Earlybird contribute complementary strengths to the fund: AVP’s transatlantic investment platform and growth-stage expertise, and Earlybird’s long-standing track record in European deeptech. The fund’s partner team also includes investors who have invested in dual-use and defence technology for over a decade, well before most European funds could, given prevalent sector restrictions that LPs have only recently begun to lift. E2D arrives not only at the right moment, but with a team that has been doing this work all along.
E2D will be a growth-stage fund, targeting around 20 companies at an average ticket size of approximately €25 million, with a dedicated team drawn from Earlybird and AVP working exclusively for the fund. Its investment focus spans across all critical domains – space, air, land, maritime, and subsurface – backing technology businesses with modern operating models, rapid execution, and clear mission focus across both defence-native 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.
The alliance between Earlybird and AVP will provide capital at scale, unmatched insight from tech investors, operators, technologists and defence leaders, and direct access to military procurement and prime customers. A world-class international strategic committee supports the fund, comprising military and industrial leaders from the armed forces, NATO, and several leading European prime players.
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