A new €500 million fund backed by Airbus is betting that Europe can build its own defense technology champions. The E2D fund, launched by venture firms Earlybird and AVP, will invest in growth-stage companies across space, air, land, maritime and subsurface domains with an average check size of €25 million.
Airbus Defence and Space signed on as the anchor limited partner, giving portfolio companies a direct connection to one of Europe’s largest defense contractors. The fund’s first investment is in Alta Ares, a French startup developing AI-powered intelligence, surveillance and counter-drone systems.
Alta Ares has already partnered with Airbus to co-develop next-generation counter-drone solutions integrated into the company’s battle management suite, suggesting the fund’s structure can accelerate technology adoption within existing procurement pipelines.
The launch reflects a broader push by European institutions to reduce reliance on non-European defense technology. Governments across the continent have increased military spending, creating favorable conditions for startups serving this market. The fund targets roughly 20 portfolio companies and aims to close capability gaps that have become more apparent in recent years.
Earlybird and AVP each bring track records in European technology investing, with AVP having deep French market ties and Earlybird maintaining a broad European network.
