DTCP, the investment firm anchored by telecommunications giant Deutsche Telekom, has launched Europe’s largest defence technology fund, targeting a substantial €500 million ($580 million) in capital. The fund, named Project Liberty, aims to invest in up to 30 European startups specialising in defence, security, and resilience technologies, focusing on stages from series A to C. This initiative underscores a strategic pivot towards bolstering European defence capabilities amid escalating geopolitical tensions and growing technological advancements.
Project Liberty is actively seeking corporate investors to join institutional investors and family offices as limited partners. The fund plans to allocate an average of €20 million per startup, prioritising technology areas such as software, cyber defence, artificial intelligence, and autonomous systems. Additionally, the fund may selectively invest in technologies from NATO member states and close allies that can enhance European security.
The launch of Project Liberty coincides with a period of heightened military activity and investment in the European defence sector. As European countries deploy small contingents of military personnel to Greenland and prepare for potential troop deployments to Ukraine, the defence technology sector has seen unprecedented growth. Notably, several of the largest funding rounds in the past year have included significant corporate participation. For instance, Saab was part of the series D funding round for German autonomous defence tech developer Helsing in June, while Dassault Aviation led a $200 million round for Helsing’s French peer Harmattan AI earlier this month.
“Project Liberty represents a highly consistent extension of our role as a specialist investment platform,” said DTCP CEO Vicente Vento in a release announcing the fund. “Defence and resilience have been converging with technology and infrastructure investing for more than a decade – precisely where DTCP, through DTCP Growth and DTCP Infra, has deep expertise and numerous touchpoints with the defence industry. There are few areas that fit more naturally with our existing platforms.”
Vento further highlighted the compelling long-term investment opportunity in the defence sector. “For decades, Europe has underinvested in defence while geopolitical risks have steadily increased. In parallel, we are witnessing a profound technological transformation across the entire value chain – from surveillance and sensing to software-defined systems, advanced materials, autonomous platforms and satellite and communications infrastructure.”
DTCP’s existing portfolio includes several dual-use technology startups, such as Quantum Systems, a German drone surveillance startup valued at nearly $3.5 billion as of November. The firm also has investments in multiple growth-stage cybersecurity software companies, positioning it well to leverage its expertise in defence and technology.
The strategic focus of Project Liberty aligns with the broader European defence landscape, which is increasingly characterised by technological innovation and corporate investment. As geopolitical risks continue to rise, the need for advanced defence technologies becomes more critical. Project Liberty’s substantial funding and strategic investments are poised to drive significant advancements in European defence capabilities, fostering a new era of security and resilience.