360 Capital Secures €85M for Deeptech Fund
▼ Summary
– A French-Italian VC firm, 360 Capital, has raised €85 million for a new deeptech fund backed by a major European defence contractor.
– This fund signals a strategic pivot by European investors toward long-horizon, dual-use technologies that serve both commercial and national security purposes.
– The 2022 invasion of Ukraine accelerated a shift, pushing defence firms to invest in venture funds for faster access to innovation outside traditional supply chains.
– Institutional support is growing, exemplified by the European Investment Fund committing €50 million to a similar deeptech and dual-use fund.
– For startups, having a defence prime as a major investor can provide crucial access to historically slow and fragmented European procurement processes.
The recent €85 million fund close by Paris-Milan venture capital firm 360 Capital signals a profound strategic shift in European technology investment. This new vehicle, backed by at least one major European defence contractor, is purpose-built to invest in dual-use technologies at the convergence of software, hardware, and national security. It underscores a broader trend where European investors are systematically integrating defence considerations into their deeptech strategy, driven by geopolitical realities and a reindustrialisation agenda that demands harder, longer-term technological solutions.
Three years ago, such a fund might have been met with skepticism in mainstream European venture circles. Today, it reflects a clear market evolution. Since the 2022 invasion of Ukraine, the innovation calculus for European defence primes has fundamentally changed. These large, established contractors, historically reliant on internal R&D and traditional supply chains, are now actively seeking access to cutting-edge technologies developed in the startup ecosystem. Investing as limited partners in venture funds like this one provides a vital channel for strategic intelligence and a faster path to modernizing military capabilities.
This movement is gaining institutional validation. The European Investment Fund, for instance, has committed €50 million to a similar deeptech and dual-use fund through the InvestEU Defence Equity Facility. For a venture firm, securing a prime defence contractor as an anchor LP is transformative. It provides more than capital, it opens a potential pathway to procurement conversations for portfolio companies. Navigating Europe’s historically slow and fragmented national defence procurement systems has been a major barrier for startups. A strategic LP with a vested, long-term interest in a fund’s success can help change that dynamic.
360 Capital, managing over €500 million in assets, brings a seasoned perspective to this opportunity. Founded in 2001, the firm has evolved from investing in internet-era digital startups to its current focus on deeptech and climate technology. Its existing portfolio spans AI, robotics, energy, and advanced materials, sectors ripe for defence-adjacent applications. This new fund represents a distinct strategic pillar, separate from its recent digital transition fund. It capitalizes on a unique moment where geopolitical demand meets a new source of structural capital from defence primes seeking technology exposure, positioning the firm to pursue what it sees as some of the most compelling returns in the deeptech landscape over the coming decade.
(Source: The Next Web)
