This article is published in association with European Investment Bank.
EIF commits €50 million to Join Capital’s Fund III, supported by the InvestEU Defence Equity Facility co-funded by the European Commission
The commitment is its largest so far in defence and is intended to provide additional private capital for strategic innovation in dual-use, defence, security and space
Join Capital Fund III targets €235 million to back dozens of early-stage, deeptech and dual-use startups building critical capabilities across Europe
The European Investment Fund (EIF), part of the EIB Group, today announces at the EIB Group Forum in Luxembourg a €50 million commitment to Join Capital’s third fund as Europe moves from defence spending announcements to rebuilding industrial capability.
The commitment is the EIF’s largest to date in defence and supported by the InvestEU Defence Equity Facility, which is designed to strengthen Europe’s defence technological and industrial base by backing venture capital funds.
Join Capital’s Fund III, targeting €235 million, will invest in 25 early-stage deeptech startups across Europe developing technologies with critical capabilities in defence, dual-use, security and space.
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
“With this backing, we are confident that additional investments will follow, helping Europe in building a robust ecosystem for innovative defence solutions.”
“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 has backed early-stage defence and deeptech innovators across Europe including Optics11 (Netherlands), Quadsat (Denmark), Kreios Space (Spain), Quantum Optics Jena (Germany) and 2D Photonics (Italy). These companies span fibre-optic sensing for critical infrastructure, quantum-secure communications, advanced electronic payloads, and cybersecurity.
“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 Berlin-based Join Capital.
Throughout history, defence research and development has not only enhanced security but reshaped civilian life. Technologies were born in military programmes, from satellite navigation and radar systems to semiconductors and the internet, now underpin global logistics, communications and productivity.
Join Capital Fund III is focused on ensuring the next generation of critical technologies is developed, scaled and anchored in Europe.
Background information
About the InvestEU Defence Equity Facility
The InvestEU Defence Equity Facility (DEF) is a €175 million initiative, co-financed by the European Defence Fund (EDF) – a €7.3 billion EU programme dedicated to defence research and development – and the European Investment Fund. This instrument, designed to stimulate the development of an ecosystem of European private funds focused on defence innovation, 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 European Union’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.
About the EIB Group
The European Investment Bank (ElB) 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 size businesses and startups across Europe. Acting as an anchor investor, through its extensive network of partnering banks and investment funds, the EIF mobilizes private investment and nurtures the ecosystem of venture capital funds to support innovative European entrepreneurs.
About Join Capital
Join Capital is an early-stage, pan-European venture capital fund with offices in Berlin, London, and Milan. Since 2017, we’ve been backing founders whose technologies strengthen Europe’s resilience and strategic autonomy through an asymmetric technological advantage. Our focus is on deep tech across enterprise, industrial, space, and defense sectors — solutions that strengthen economies, secure critical infrastructure, and create enduring strategic advantage.
Join Capital currently invests from its second fund generation, managing over €150 million in assets. Investors include NATO Innovation Fund (NIF), Isomer Capital, KfW Capital, and Cassa Depositi e Prestiti (CDP), leading funds-of-funds, and prominent family offices. To date, we’ve backed 36 portfolio companies and successfully realised five exits.
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