Airbus anchors €500 million European defence tech fund E2D

E2D, the dual-use and defence growth fund run by Earlybird and AVP, has brought in Airbus Defence and Space as anchor investor for its planned €500 million vehicle and made its first deal in Alta Ares. The move links the new fund to one of Europe’s largest defence primes while putting its first capital behind intelligence, surveillance, reconnaissance and counter-drone technology.

The size of Airbus Defence and Space’s commitment was not disclosed. E2D also did not disclose the amount invested in Alta Ares or any valuation for the French-headquartered company.

Earlybird and AVP launched E2D last month as a growth-stage fund focused on defence and dual-use companies in Europe. The vehicle is jointly owned and advised by the two firms and is targeting about 20 portfolio companies, with an average cheque of approximately €25 million.

The fund’s mandate spans space, air, land, maritime and subsurface technologies. E2D says it was set up to back European growth-stage companies, support adoption of new technologies by armed forces and strategic industries, and contribute to European sovereignty and economic growth. Those are broad claims, and the disclosed mechanics are the fund size target, portfolio count and expected average ticket size.

First deal follows Airbus agreement

Alta Ares develops AI-powered hardware and software for intelligence, surveillance and reconnaissance, known as ISR, as well as counter-unmanned aerial systems missions. The company is headquartered in France. E2D described the company’s software as agnostic, but did not provide technical detail on performance, customer numbers, revenue or deployment scale.

The investment follows a memorandum of understanding between Airbus Defence and Space and Alta Ares. Under that MOU, the companies plan to co-develop and integrate next-generation European counter-drone systems into Airbus’ battle management suite.

That sequence matters for E2D’s positioning. The fund is not only presenting itself as a financial investor, but as a channel connecting growth-stage defence technology companies with industrial primes and operators. Airbus’ role as anchor LP gives the fund a direct relationship with a major potential integrator, although the announcement did not specify any preferential access, commercial commitments or procurement terms for portfolio companies.

Roland Manger, co-founder of Earlybird, said Airbus Defence and Space’s role as anchor LP brings E2D closer to the operators and industrial primes that portfolio companies need to scale. He described Alta Ares as a mission-focused company already delivering for European armed forces.

Benoit Fosseprez, general partner at AVP, said Airbus’ backing was a vote of confidence in E2D’s mission and a signal that European industrial groups are prepared to support growth-stage companies aimed at closing capability gaps. He pointed to Alta Ares as the kind of European deep tech company the fund wants to back.

The announcement adds another data point to the shift in European venture and growth capital toward defence and dual-use technology. For founders in the category, the more relevant test will be whether funds such as E2D can convert industrial relationships into revenue, procurement access and scale, rather than only larger financing rounds.

This story draws on original reporting from Tech.eu.