I wrote about the involvement of Venture Capital in the defense industry a while back (click here to read up on that one). However, with the current geopolitical tension and Europe looking at investing more in defending itself again, there have been some important changes in the funding landscape. 

With geopolitical tensions reshaping priorities, Europe has launched unprecedented funding mechanisms targeting innovative companies developing technologies that enhance both civilian and military capabilities. If you’re building in AI, autonomy, cybersecurity, biotech, or other sectors, your solution likely has dual-use potential and there are programs out there that may want to fund you.

Below I dig a bit deeper into what every European founder needs to know about accessing these opportunities.

But first… addressing ethical concerns

Many startups may hesitate to pursue defense-related funding due to concerns about the military applications of their technologies, and that’s understandable. However, these programs specifically emphasize dual-use technologies that serve both civilian and defense purposes, contributing to broader societal benefits while enhancing security. The focus on dual-use innovation means that startups can develop technologies with clear civilian applications while also contributing to collective security and defense capabilities.

Think secure communication, resilient infrastructure, satellite navigation, autonomous logistics, or medical tech for extreme environments. Technologies that not only protect borders but save lives.

EU DEFENCE INNOVATION PROGRAMS: YOUR GATEWAY TO GROWTH

First up are the Euopeanwide programmes, that are funded by the European Commission and NATO.

European Defence Fund (EDF) + EU Defence Innovation Scheme (EUDIS)

Combined Budget: €10+ billion (2021-2027) 2025 Allocation: €1.4 billion across 33 topics

The EDF represents Europe’s flagship defense innovation initiative, while EUDIS specifically targets SMEs and startups within this framework. Together, they offer multiple entry points:

Key Focus Areas: Cyber defense and resilience, Space-based defense technologies, Autonomous systems and AI, Maritime and naval technologies, Training and simulation systems

What’s Available:

• Research grants: Up to 100% funding for collaborative R&D

• Cascade funding: up to €500,000 grants through Innovation Test Hubs

• Business coaching: 15 days free mentoring for successful applicants

• Defense Equity Facility: Enhanced access to equity investments

Eligibility: SMEs, startups, and established companies across all EU member states. For 2025, Ukrainian entities are also eligible, recognizing battlefield experience and defense industry contributions. Do note: for EDF projects, there is a requirement of minimum 3 consortium partners over different countries.

EDF: https://defence-industry-space.ec.europa.eu/eu-defence-industry/european-defence-fund-edf-official-webpage-european-commission_en

If you have more questions on EDF funding, you can reach out your country’s contact points here: https://edfnetwork.eu/nfp-contacts/

EUDIS accelerator: https://eudis.europa.eu/eudis-tracks/business-accelerator_en

NATO Innovation Ecosystem: Scale Across 28 Countries with DIANA + NATO Innovation Fund

Network: 28 countries, 23 accelerator sites, 182 test centers Investment Capital: €1 billion fund backed by 24 NATO allies

DIANA’s six-month accelerator program connects startups with military end-users through practical challenges. Recent 2025 launches include energy solutions, contested electromagnetic environments, and autonomous systems.

Immediate Opportunities:

• €100,000 contractual funding for selected innovators

• Access to unique test facilities across Europe and North America

• Direct pathways to NATO procurement networks

The NATO Innovation Fund operates as Europe’s largest defense-focused VC, investing in deep tech companies developing sensors, software platforms, space communications, and strategic technologies.

Go here for more information on the DIANA programme: https://www.diana.nato.int

 European Innovation Council (EIC) & Horizon Europe

The EIC Accelerator—part of Horizon Europe—has quietly become a major backer of dual-use technology. With grants up to €2.5M and equity up to €15M, it now allows defence-relevant applications, opening the door for founders innovating in cyber, space, and advanced materials.

https://eic.ec.europa.eu/eic-funding-opportunities/eic-accelerator_en

 Strategic Tech Funding via EIF and STEP

The European Investment Fund (EIF) recently launched the Defence Equity Facility to back funds investing in dual-use ventures. In parallel, STEP (Strategic Technologies for Europe Platform) lets member states reallocate cohesion funding.

https://www.eif.org/index.htm

NATIONAL PROGRAMS: DIRECT ACCESS TO LOCAL PARTNERS

Next to investments on a European level, various local innovation and defense organisations are rolling out plans to support innovative technologies with dual use in their countries. Below are some examples I found:

Belgium’s Innovation for Defence (Inno4Def)

Launched in 2023, Inno4Def focuses on short-cycle innovation to maintain Belgium’s technological edge in defence. The program’s 2025 Battlefield of Things 2: Drones hackathon brought together 190 participants—military personnel, engineers, students, and entrepreneurs—to tackle challenges such as GPS denied navigation, anti drone systems and procurement modernisation.

Go here for the details: https://inno4def.be

Germany’s Bundeswehr Cyber Innovation Hub

Established in 2017, the Bundeswehr Cyber Innovation Hub (CIHBw) acts as a gateway for startups to collaborate with Germany’s armed forces.  CIHBw’s hybrid team of soldiers, entrepreneurs, and engineers has facilitated partnerships with startups like ARX Robotics, whose modular drones are now deployed in NATO operations.

Visit the hub here: https://www.cyberinnovationhub.de/en/

Netherlands’ Defence Industry Strategy

In April 2025, the Netherlands announced a €1.15 billion investment to bolster its defence industry, where a strategy explicitly links civilian R&D to military needs, with startups receiving grants to scale innovations.

Sites are not live at this stage, but you can find more on the Defport and other projects here: https://english.defensie.nl/downloads/policy-notes/2025/04/04/defence-strategy-for-industry-and-innovation-2025-2029

Sweden’s Civil-Military Innovation Program

Sweden’s 2024 initiative, backed by Vinnova (the national innovation agency), funds projects for civil-military synergies. The program mandates collaboration between startups and established defence firms, ensuring rapid technology transfer.

You can find their current open calls here: https://www.vinnova.se/en/calls-for-proposals/civil-military-synergies/

UK’s Defence and Security Accelerator (DASA)

DASA or Defence and Security Accelerator is the UK-based innovation agency run by the UK Ministry of Defence (MOD). It was launched in 2016 with the goal of finding and funding innovative ideas that can improve the UK’s defence and national security. They offer open calls, non-dilutive funding, dual-use commercialisation through themed competitions and open calls for innovation.

All funding options for DASA can be found here: https://www.gov.uk/government/collections/apply-for-funding

Strategic Approach for Startups

1. Assess your technology for dual-use applications—AI, sensors, communication, and automation often qualify
2. Leverage hackathons like Belgium’s Inno4Def for direct military end-user access
3. Target cascade funding through EUDIS Innovation Test Hubs (up to €500,000)
4. Build consortium partnerships for larger EDF applications requiring cross-border collaboration

Ready to explore these opportunities?

If you’re developing technology that could protect critical infrastructure, support humanitarian operations, or secure our digital borders, now is the time to engage. These programs are not about fueling conflict—they are about building the foundations of peace, resilience, and collective security in an unpredictable world.