Defence Equity Facility 2.0

From proven model to strategic scale: building on DEF 1.0

With an initial target size of €1 billion, DEF 2.0 aims to support the emergence and growth of pan-European venture capital, private equity, private credit, and infrastructure funds focused on defence and cybersecurity. Building on the success of the InvestEU Defence Equity Facility, DEF 2.0 broadens the EIF's support for the sector through an expanded mandate and increased scale. Aiming to support 25-30 portfolio funds that in turn invest in companies across all stages, DEF 2.0 expands its investment remit to defence and cyber technologies, hardware and infrastructure, helping to strengthen Europe’s industrial base. DEF 2.0 forms part of the TechEU programme and complements the European Tech Champions Initiative 2.0.

The ecosystem in focus 

The EIF has been investing in the defence and cybersecurity space for many years. Through a selection of funds across asset classes, the EIF has helped build and strengthen a European defence investment ecosystem, enabling the development and scaling of capabilities critical to the next generation of security and defence capabilities. Its investments have supported companies across the innovation cycle, developing strategic capabilities in areas such as cybersecurity, artificial intelligence and space technologies, contributing to the emergence of a more resilient and competitive European security and defence ecosystem. In 2025, the EIF committed €376 million to defence and security investments.

As Europe is strengthening its resilience and strategic autonomy, innovative technology companies have the opportunity to lead in areas ranging from cyber defence and critical infrastructure protection to advanced industrial capabilities.

To realise this potential, we need greater public and private investment across the ecosystem - supporting research & development, scaling high-growth businesses, strengthening infrastructure, and accelerating collaboration.

The fund-of-funds structure replicates the format of similar mandates under EIF management. DEF 2.0 is structured as a public-first fundraising process, initially anchored by commitments from EU Member States - with a minimum ticket size of €50 million, including via their national promotional institutions (NPIs). The EIB Group and the EC complements these resources with own funds. Once this public cornerstone is in place, the initiative is opened to complementary private sector investors, enabling broader participation and scale.