Deutsche Telekom (DT) and Porsche are reportedly teaming up to launch a €500 million venture capital fund focused on European defence technology, according to a Bloomberg report. The fund, which is still in the planning stages, would be managed by Digital Transformation Capital Partners (DTCP), an investment house closely linked to DT. Both DT and Porsche are expected to serve as anchor investors, though the final size and structure of the fund could evolve as discussions progress.
This move comes as both companies signal growing interest in the defence sector as a means of diversifying their business portfolios. In May, DT’s Chief Financial Officer Christian Illek highlighted the company’s IT services arm, T-Systems, had seen growth from defence contracts amid rising geopolitical tensions. He emphasised that digital sovereignty and national security were becoming increasingly critical for the provider. Meanwhile, DT CEO Tim Höttges hinted at discussions with Rheinmetall, a major German defence manufacturer, though he did not disclose specifics.
Porsche, too, has recently announced plans to expand its investment portfolio into defence and security sectors. The company aims to create a platform with other investors to back emerging technology companies in defence, while maintaining a focus on mobility and industrial technology. Porsche has already made strides in dual-use technology, investing in satellite launch service provider Isar Aerospace and drone surveillance specialist Quantum Systems.
If the fund materialises, it will mark the second collaboration between Porsche and DTCP. The two previously established Incharge Capital Partners in June 2024, a €120 million joint venture focused on early-stage startups in autonomous systems, clean mobility, and seamless supply chains. Incharge has already invested in three companies, including Stoke Space, a US-based aerospace startup developing reusable spacecraft, and Waabi, a Canadian autonomous trucking tech firm.
DTCP, while independently operated, has deep ties to DT, with Thorsten Langheim, DT’s Head of USA & Group Development, chairing its investment committee. The firm has built significant portfolios in enterprise technology and digital infrastructure, often with DT as a major investor.
The move by DT and Porsche reflects a broader trend among European telecom companies seeking to capitalise on rising defence budgets and cybersecurity threats. Telefónica, for instance, is reportedly well-positioned to benefit from a €10.5 billion increase in Spain’s defence and security spending, with a third of the budget allocated to telecoms and cybersecurity. Meanwhile, Orange has launched a dedicated Defence & Security Division to serve enterprise customers and government organisations in response to growing security concerns among its clients.
As European nations, including Germany, ramp up defence spending in response to geopolitical shifts, partnerships like this one between DT and Porsche could accelerate innovation in defence technology. The collaboration not only strengthens the companies’ positions in emerging markets but also underscores the growing intersection of civilian and military technology development.
