Earlybird & AVP launch E2D – a €500M defence and dual-use growth fund

On 18 June 2026, Berlin-based Earlybird Venture Capital and French investor AVP (Atlantic Vantage Point) launched E2D (European Dual-Use and Defence Growth Fund), a €500 million fund—one of the most significant Franco-German dual-use and defence investment collaborations in the European tech ecosystem . E2D is deliberately structured as a growth-stage fund (not seed), targeting approximately 20 European companies with an average ticket size of approximately €25 million per company .

Investment focus: The fund will deploy capital across space, air, land, maritime, and subsurface domains, prioritising technologies including advanced semiconductors, artificial intelligence, New Space, drones, autonomous platforms, and directed energy .

Strategic goal: E2D is designed to stop European defence startups from moving their scale-up rounds, talent, and intellectual property to US investors—a persistent pattern in the European defence-tech ecosystem . The fund has a dedicated team drawn from both Earlybird and AVP and will be backed by large financial institutions and corporate limited partners . Its target first close is 30 June 2026 .

BAE Systems – €50M push into European defence-tech VC

Also in the same week (16 June 2026), BAE Systems, the UK's largest defence contractor, committed €50 million to venture capital funds focused on backing European defence-tech startups . It allocated €25 million each into two funds: one led by Lakestar (Switzerland) and another by Expeditions (Poland) . Both funds are actively investing in defence startups, including Isar Aerospace and Cambridge Aerospace . The move is the second phase of BAE's Launchpad programme, which both spins BAE's own technology into commercial markets and backs outside founders capable of bringing innovation to the defence sector . Commentators described the move as a "prime contractor turning fund investor as Europe's rearmament money reaches startup cap tables" .

Silicon photonics firms warn Europe lacks commercialisation infrastructure

On 19 June 2026, research published by the CORNERSTONE Photonics Innovation Centre—a UK-based photonics research hub—warned that Europe is failing to turn its world-class silicon photonics (SiPh) research into commercial products due to a critical shortage of manufacturing infrastructure . The survey, conducted via OnePoll, gathered insights from 500 decision-makers in the UK, US, Netherlands, Germany, and Spain who are currently developing or deploying SiPh chips . Key findings include:

• Two-thirds (66%) of firms said manufacturing access is the primary barrier to commercialisation .
• 59% say their country lacks the infrastructure to bridge the gap between a research prototype and a production fab line .
• Over 50% of EU photonics companies already outsource fabrication outside Europe due to inadequate domestic capacity .
• Europe's import dependence for advanced CMOS-compatible fabrication (the technology needed for high-volume silicon photonics) exceeds 65% .

This infrastructure gap is critical because photonics underpins an estimated 20% of Europe's economy, according to the EU Photonics Strategic Research and Innovation Agenda (SRIA), presented to the European Commission on 10 June 2026 . The SRIA, titled Light Driving the Future, warns that global competition—especially from Asia and North America—is threatening Europe's leadership in photonics, a field vital to AI, quantum computing, defence, and semiconductor manufacturing . The SRIA was produced by Photonics21, the European technology platform for photonics, and was debated at the Photonics Partnership Annual Meeting 2026 (PPAM2026) . Industry leaders at the meeting emphasised that "the challenge is not innovation—it's the transition from science to industry" .

Overall weekly snapshot

According to Tech.eu's weekly tracker, the week ending 19 June 2026 saw more than 60 tech funding deals worth over €585 million and 3 exits/M&A transactions across Europe . Defence and dual-use technology dominated the headlines, while the silicon photonics infrastructure warning highlighted a growing structural weakness in European deep-tech commercialisation—a problem that, as the Draghi report on European competitiveness has warned, threatens the continent's strategic and economic relevance in critical technologies .

Earlybird & AVP launch E2D – a €500M defence and dual-use growth fund

On 18 June 2026, Berlin-based Earlybird Venture Capital and French investor AVP (Atlantic Vantage Point) launched E2D (European Dual-Use and Defence Growth Fund), a €500 million fund—one of the most significant Franco-German dual-use and defence investment collaborations in the European tech ecosystem . E2D is deliberately structured as a growth-stage fund (not seed), targeting approximately 20 European companies with an average ticket size of approximately €25 million per company .

Investment focus: The fund will deploy capital across space, air, land, maritime, and subsurface domains, prioritising technologies including advanced semiconductors, artificial intelligence, New Space, drones, autonomous platforms, and directed energy .

Strategic goal: E2D is designed to stop European defence startups from moving their scale-up rounds, talent, and intellectual property to US investors—a persistent pattern in the European defence-tech ecosystem . The fund has a dedicated team drawn from both Earlybird and AVP and will be backed by large financial institutions and corporate limited partners . Its target first close is 30 June 2026 .

BAE Systems – €50M push into European defence-tech VC

Also in the same week (16 June 2026), BAE Systems, the UK's largest defence contractor, committed €50 million to venture capital funds focused on backing European defence-tech startups . It allocated €25 million each into two funds: one led by Lakestar (Switzerland) and another by Expeditions (Poland) . Both funds are actively investing in defence startups, including Isar Aerospace and Cambridge Aerospace . The move is the second phase of BAE's Launchpad programme, which both spins BAE's own technology into commercial markets and backs outside founders capable of bringing innovation to the defence sector . Commentators described the move as a "prime contractor turning fund investor as Europe's rearmament money reaches startup cap tables" .

Silicon photonics firms warn Europe lacks commercialisation infrastructure

On 19 June 2026, research published by the CORNERSTONE Photonics Innovation Centre—a UK-based photonics research hub—warned that Europe is failing to turn its world-class silicon photonics (SiPh) research into commercial products due to a critical shortage of manufacturing infrastructure . The survey, conducted via OnePoll, gathered insights from 500 decision-makers in the UK, US, Netherlands, Germany, and Spain who are currently developing or deploying SiPh chips . Key findings include:

• Two-thirds (66%) of firms said manufacturing access is the primary barrier to commercialisation .
• 59% say their country lacks the infrastructure to bridge the gap between a research prototype and a production fab line .
• Over 50% of EU photonics companies already outsource fabrication outside Europe due to inadequate domestic capacity .
• Europe's import dependence for advanced CMOS-compatible fabrication (the technology needed for high-volume silicon photonics) exceeds 65% .

This infrastructure gap is critical because photonics underpins an estimated 20% of Europe's economy, according to the EU Photonics Strategic Research and Innovation Agenda (SRIA), presented to the European Commission on 10 June 2026 . The SRIA, titled Light Driving the Future, warns that global competition—especially from Asia and North America—is threatening Europe's leadership in photonics, a field vital to AI, quantum computing, defence, and semiconductor manufacturing . The SRIA was produced by Photonics21, the European technology platform for photonics, and was debated at the Photonics Partnership Annual Meeting 2026 (PPAM2026) . Industry leaders at the meeting emphasised that "the challenge is not innovation—it's the transition from science to industry" .

Overall weekly snapshot

According to Tech.eu's weekly tracker, the week ending 19 June 2026 saw more than 60 tech funding deals worth over €585 million and 3 exits/M&A transactions across Europe . Defence and dual-use technology dominated the headlines, while the silicon photonics infrastructure warning highlighted a growing structural weakness in European deep-tech commercialisation—a problem that, as the Draghi report on European competitiveness has warned, threatens the continent's strategic and economic relevance in critical technologies .