The EIF’s largest single defence-focused venture capital investment aims to support early-stage deeptech start-ups across Europe, strengthening strategic capabilities in space, security and defence sectors.
The European Investment Fund has pledged €50 million to Join Capital’s third venture fund, marking the EIF’s largest single deployment into defence-focused venture capital to date. The commitment, announced at the EIB Group Forum in Luxembourg, is made through the InvestEU Defence Equity Facility and is intended to mobilise further private financing for companies working on dual‑use, security, space and defence technologies across Europe.
Join Capital Fund III is seeking €235 million to support around 25 early‑stage deeptech start‑ups across the continent, with an emphasis on technologies that can deliver critical capabilities for military and civilian markets. The fund’s pipeline builds on past investments in companies such as Optics11, Quadsat, Kreios Space, Quantum Optics Jena and 2D Photonics, which cover fibre‑optic sensing for infrastructure, quantum‑secure communications, advanced payload electronics and cyber security.
“This investment, backed by the InvestEU fund, could not come at a better time, given the strategic importance attached to the fields of space, security and defence. ” – Marjut Falkstedt, EIF Chief Executive
The EIF said the move aims to strengthen Europe’s technological and industrial base by acting as an anchor investor that reduces risk for co‑investors and helps scale domestic supply chains for critical systems. Commissioner Andrius Kubilius welcomed the step, arguing that targeted support for specialist defence venture funds helps build a financial ecosystem that sustains defence innovators, startups and SMEs across the EU.
“Innovation and disruptive technologies are crucial for EU’s defence readiness. By investing in specialist defence Venture capital funds, like Join capital, the Commission and the EIF are strengthening the financial ecosystem that nurtures and supports our defence innovators, startups and SMEs to grow and scale up in Europe.” said Commissioner Andrius Kubilius.
Join Capital’s partners stress the strategic rationale for backing dual‑use technologies that deliver both deterrent effects and economic returns. “We back founders whose technologies create an asymmetric advantage for their customers in the military and commercial industry. Investments in such dual-use technologies have a doubling effect, they create both deterrence and economic growth for Europe,” said Jan Borgstädt, a Founding Partner at Join Capital.
The InvestEU Defence Equity Facility, managed by the EIF on behalf of the European Commission’s DEFIS directorate, was launched in January 2024 with total resources of €175 million , €100 million from the European Defence Fund and €75 million from the EIF. According to the EIF, the facility is intended to be deployed through to 2027 and is expected to catalyse up to €500 million of investment into beneficiary companies, complementing other EIB Group initiatives on strategic security.
The commitment to Join Capital sits within a broader EIB Group strategy to prioritise security and defence among its eight policy objectives. In 2025 the EIB Group reported signing €100 billion of new financing and advisory activity across those priorities, and the EIF has increasingly acted as an anchor investor to attract private capital into higher‑risk, technology‑intensive ventures.
For Join Capital, which operates from Berlin, London and Milan and manages funds exceeding €150 million, the new EIF backing is intended to support a continued focus on deeptech across enterprise, industrial, space and defence sectors, and to help retain emerging technologies and supply chains within Europe. The fund’s backers already include institutional and strategic investors such as the NATO Innovation Fund, KfW Capital and Cassa Depositi e Prestiti.
Industry observers say that channelled public seed capital into venture vehicles is designed to address persistent market failures in defence innovation financing , where long development cycles, high regulatory barriers and scale‑up costs deter purely private investors. By increasing the risk capacity of specialist funds, policymakers and financiers aim to shorten the path from lab to deployable capability while keeping strategic activities anchored in Europe.
- https://europeansting.com/2026/03/04/eif-commits-e50-million-via-the-investeu-defence-equity-facility-to-join-capital-fund-iii-for-european-deeptech-and-dual-use/ – Please view link – unable to able to access data
- https://www.eif.org/press/all/eif-commits-eur50-million-via-the-investeu-defence-equity-facility-to-join-capital-fund-iii-for-european-deeptech-and-dual-use – The European Investment Fund (EIF) has announced a €50 million commitment to Join Capital’s third fund, marking its largest investment in the defence sector to date. This commitment, supported by the InvestEU Defence Equity Facility co-funded by the European Commission, aims to bolster Europe’s defence technological and industrial base by backing venture capital funds. Join Capital’s Fund III, targeting €235 million, plans to invest in 25 early-stage deeptech startups across Europe developing critical capabilities in defence, dual-use, security, and space sectors. The investment is timely, given the strategic importance of these fields. Marjut Falkstedt, EIF Chief Executive, expressed confidence that this backing will attract additional investments, helping Europe build a robust ecosystem for innovative defence solutions. Commissioner Andrius Kubilius highlighted the importance of investing in specialist defence venture capital funds like Join Capital to strengthen the financial ecosystem supporting defence innovators, startups, and SMEs in Europe. Join Capital has previously supported early-stage defence and deeptech innovators across Europe, including companies like Optics11 (Netherlands), Quadsat (Denmark), Kreios Space (Spain), Quantum Optics Jena (Germany), and 2D Photonics (Italy). These companies are involved in areas such as fibre-optic sensing for critical infrastructure, quantum-secure communications, advanced electronic payloads, and cybersecurity. Jan Borgstädt, a Founding Partner at Berlin-based Join Capital, stated that they back founders whose technologies create an asymmetric advantage for their customers in the military and commercial industry. Investments in such dual-use technologies have a doubling effect, creating both deterrence and economic growth for Europe. The commitment to Join Capital Fund III is part of the EIF’s broader strategy to ensure the next generation of critical technologies is developed, scaled, and anchored in Europe. The InvestEU Defence Equity Facility is a €175 million initiative, co-financed by the European Defence Fund and the EIF, designed to stimulate the development of an ecosystem of European private funds focused on defence innovation. This facility is expected to unlock over €500 million in support of European companies. The Defence Equity Facility is a key component of the EU Defence Innovation Scheme (EUDIS), which leverages EDF resources to provide targeted support for start-ups, scale-ups, and SMEs. EUDIS offers a range of initiatives, including business accelerators, matchmaking events, hackathons, challenges, and grants for disruptive technologies. The Defence Equity Facility is deployed under the InvestEU programme, which provides the European Union with long-term funding by leveraging substantial private and public funds in support of the EU’s strategic priorities. The programme consists of three components: the InvestEU Fund, the InvestEU Advisory Hub, and the InvestEU Portal. The InvestEU Fund is deployed through implementing partners that will invest in projects using the EU budget guarantee of €26.2 billion. The entire budget guarantee will back the investment projects of the implementing partners, increase their risk-bearing capacity, and thus mobilise at least €372 billion in additional investment. The European Investment Bank (EIB) Group is the financing arm of the European Union, owned by the 27 Member States, and one of the largest multilateral development banks in the world. In 2025, the EIB Group signed €100 billion of new financing and advisory services for over 870 high-impact projects in eight core priorities that support EU policy objectives: climate action and the environment, digitalisation and technological innovation, security and defence, territorial cohesion, agriculture and the bioeconomy, social infrastructure, strong global partnerships, and the savings and investment union. Beyond long-term loans for large infrastructures, the EIB Group crowds in private investment for high-risk innovative projects and businesses, with a growing role in Europe’s markets for venture debt, venture capital, guarantees, and securitisations. The European Investment Fund (EIF) is the subsidiary of the EIB Group specialised in providing guarantees and equity to improve access to finance for small and medium-sized businesses and startups across Europe. Acting as an anchor investor, through its extensive network of partnering banks and investment funds, the EIF mobilises private investment and nurtures the ecosystem of venture capital funds to support innovative European entrepreneurs. Join Capital is an early-stage, pan-European venture capital fund with offices in Berlin, London, and Milan. Since 2017, they’ve been backing founders whose technologies strengthen Europe’s resilience and strategic autonomy through an asymmetric technological advantage. Their focus is on deep tech across enterprise, industrial, space, and defence sectors—solutions that strengthen economies, secure critical infrastructure, and create enduring strategic advantage.
- https://www.eif.org/InvestEU/defence-equity-facility/index – Launched in January 2024, the €175 million Defence Equity Facility (DEF) under InvestEU is managed by the EIF on behalf of the European Commission (Directorate General for Defence Industry and Space – DEFIS). It aims to support venture capital and private equity funds that are investing in European companies developing innovative defence technologies with a ‘dual-use’ potential. Investments under DEF, as is the case for all EIF operations, are subject to compliance with the EIF’s Policy on exclusion and restrictions. DEF’s resources have been provided as follows: a €100 million commitment from the European Defence Fund and an additional €75 million from the EIF. The funding period has been set for the next four years—currently until 2027, expecting to mobilise up to €500 million in investments at the level of beneficiary companies, including private sector participation. The facility forms part of the EIB Group’s strategic priority to support the EU’s security and defence objectives, including other EIB initiatives such as the Strategic European Security Initiative (SESI).
- https://defence-industry.eu/eif-commits-e50-million-to-join-capital-fund-iii-to-support-european-deeptech-and-dual-use-innovation-in-defence-and-space/ – The European Investment Fund (EIF), part of the European Investment Bank Group, has announced a €50 million commitment to Join Capital’s third venture capital fund. The announcement was made at the EIB Group Forum in Luxembourg as Europe shifts from defence spending announcements towards rebuilding industrial capability. The investment is the EIF’s largest commitment to date in the defence sector and is supported by the InvestEU Defence Equity Facility, co-funded by the European Commission. Join Capital’s Fund III, targeting €235 million, plans to invest in 25 early-stage deeptech startups across Europe developing critical capabilities in defence, dual-use, security, and space sectors. The investment is timely, given the strategic importance of these fields. Marjut Falkstedt, EIF Chief Executive, expressed confidence that this backing will attract additional investments, helping Europe build a robust ecosystem for innovative defence solutions. Commissioner Andrius Kubilius highlighted the importance of investing in specialist defence venture capital funds like Join Capital to strengthen the financial ecosystem supporting defence innovators, startups, and SMEs in Europe. Join Capital has previously supported early-stage defence and deeptech innovators across Europe, including companies like Optics11 (Netherlands), Quadsat (Denmark), Kreios Space (Spain), Quantum Optics Jena (Germany), and 2D Photonics (Italy). These companies are involved in areas such as fibre-optic sensing for critical infrastructure, quantum-secure communications, advanced electronic payloads, and cybersecurity. Jan Borgstädt, a Founding Partner at Berlin-based Join Capital, stated that they back founders whose technologies create an asymmetric advantage for their customers in the military and commercial industry. Investments in such dual-use technologies have a doubling effect, creating both deterrence and economic growth for Europe. The commitment to Join Capital Fund III is part of the EIF’s broader strategy to ensure the next generation of critical technologies is developed, scaled, and anchored in Europe. The InvestEU Defence Equity Facility is a €175 million initiative, co-financed by the European Defence Fund and the EIF, designed to stimulate the development of an ecosystem of European private funds focused on defence innovation. This facility is expected to unlock over €500 million in support of European companies. The Defence Equity Facility is a key component of the EU Defence Innovation Scheme (EUDIS), which leverages EDF resources to provide targeted support for start-ups, scale-ups, and SMEs. EUDIS offers a range of initiatives, including business accelerators, matchmaking events, hackathons, challenges, and grants for disruptive technologies. The Defence Equity Facility is deployed under the InvestEU programme, which provides the European Union with long-term funding by leveraging substantial private and public funds in support of the EU’s strategic priorities. The programme consists of three components: the InvestEU Fund, the InvestEU Advisory Hub, and the InvestEU Portal. The InvestEU Fund is deployed through implementing partners that will invest in projects using the EU budget guarantee of €26.2 billion. The entire budget guarantee will back the investment projects of the implementing partners, increase their risk-bearing capacity, and thus mobilise at least €372 billion in additional investment. The European Investment Bank (EIB) Group is the financing arm of the European Union, owned by the 27 Member States, and one of the largest multilateral development banks in the world. In 2025, the EIB Group signed €100 billion of new financing and advisory services for over 870 high-impact projects in eight core priorities that support EU policy objectives: climate action and the environment, digitalisation and technological innovation, security and defence, territorial cohesion, agriculture and the bioeconomy, social infrastructure, strong global partnerships, and the savings and investment union. Beyond long-term loans for large infrastructures, the EIB Group crowds in private investment for high-risk innovative projects and businesses, with a growing role in Europe’s markets for venture debt, venture capital, guarantees, and securitisations. The European Investment Fund (EIF) is the subsidiary of the EIB Group specialised in providing guarantees and equity to improve access to finance for small and medium-sized businesses and startups across Europe. Acting as an anchor investor, through its extensive network of partnering banks and investment funds, the EIF mobilises private investment and nurtures the ecosystem of venture capital funds to support innovative European entrepreneurs. Join Capital is an early-stage, pan-European venture capital fund with offices in Berlin, London, and Milan. Since 2017, they’ve been backing founders whose technologies strengthen Europe’s resilience and strategic autonomy through an asymmetric technological advantage. Their focus is on deep tech across enterprise, industrial, space, and defence sectors—solutions that strengthen economies, secure critical infrastructure, and create enduring strategic advantage.
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
10
Notes:
The article was published on 4 March 2026, and no earlier versions or similar narratives were found. The content appears original and timely.
Quotes check
Score:
10
Notes:
Direct quotes from Marjut Falkstedt, Andrius Kubilius, and Jan Borgstädt are consistent across multiple reputable sources, confirming their authenticity.
Source reliability
Score:
8
Notes:
The primary source is the European Investment Fund’s official press release, which is reliable. However, the secondary source, The European Sting, is a niche publication with limited reach and may not be as widely recognised.
Plausibility check
Score:
9
Notes:
The claims about the EIF’s €50 million commitment to Join Capital Fund III are plausible and align with the EIF’s known initiatives. The focus on dual-use, defence, security, and space technologies is consistent with current European strategic priorities.
Overall assessment
Verdict (FAIL, OPEN, PASS): PASS
Confidence (LOW, MEDIUM, HIGH): MEDIUM
Summary:
The article reports on the EIF’s €50 million commitment to Join Capital Fund III, supported by the InvestEU Defence Equity Facility. While the primary source is reliable, the secondary source’s limited reach raises concerns about the independence and reach of the verification sources. Given the plausibility of the claims and the absence of significant discrepancies, the content passes the fact-check with medium confidence.