Europe is looking for quicker ways to strengthen its defence industry as demand grows for locally developed technology. A new investment fund aims to help promising companies grow with stronger financial support. Airbus Defence and Space has joined the effort as the fund’s main investor. The move also reflects European defence tech aim of keeping investment, talent and innovation within the region.
Airbus joins €500 million fund
Airbus Defence and Space has agreed to become the main investor in the new E2D defence and dual-use technology fund at the Farnborough International Airshow in the United Kingdom. The fund was launched in June 2026 by European investment firms AVP and Earlybird and aims to raise €500 million (£425 million). It is one of the largest Franco-German technology investment partnerships in Europe.
E2D plans to support around 20 growing companies, with each receiving an average investment of €25 million. The fund will back businesses developing technologies for space, air, land, sea and underwater operations, including both defence and dual-use applications.
Michael Schoellhorn, CEO of Airbus Defence and Space, said Europe needs to grow its technology sector more quickly to meet today’s defence needs. He added that investing in E2D supports Airbus’ own investment strategy whilst helping to keep funding, skilled workers and new ideas in Europe.
Alta Ares becomes first investment
E2D has already announced its first investment in French technology company Alta Ares. The company develops AI-powered hardware and software designed for intelligence, surveillance and reconnaissance missions, along with counter-unmanned aerial autonomous defence systems. Its software is platform-agnostic, allowing it to work across different systems.
The investment comes after Airbus Defence and Space and Alta Ares recently signed a memorandum of agreement. Under the agreement, both companies will work together to develop and integrate next-generation European counter-drone capabilities into Airbus’ battle management suite.
Alta Ares is exactly the kind of business we set out to support: agile, mission-focused, and already delivering for European armed forces.
Roland Manger
Building Europe’s technology base
E2D said the fund was created to give European technology companies the funding they need to grow. It also aims to help Europe’s armed forces and key industries adopt new technologies whilst supporting economic growth and greater technological independence.
Roland Manger, co-founder of Earlybird, said Airbus’ investment connects portfolio companies with major industry partners that can help them scale up. He said Alta Ares is a good example of the kind of focused company the fund wants to support.
Benoit Fosseprez, General Partner at AVP, said Airbus joining as the main investor demonstrates strong confidence in E2D’s mission. He added that Alta Ares represents the type of European technology company the fund wants to back to help to strengthen Europe’s defence capabilities.