Expeditions, supported by BAE, has secured a €197 million fund to invest in European defense startups.

      Expeditions, a venture firm based in Warsaw and supported by BAE Systems and the NATO Innovation Fund, has successfully raised a fund of €197 million ($225 million) to support the next generation of European defense startups. This fundraising marks the conclusion of a surge in defense investment, with defense giant BAE committing €50 million to external venture capitalists and a rapid influx of venture capital into Europe's defense technology sector.

      The fund, known as Expeditions Fund II, exceeded its initial goal of €150 million, largely thanks to a €25 million contribution from BAE. The firm aims to allocate this capital to as many as 40 early-stage companies that are developing technologies deemed to have immediate operational relevance to address Europe’s critical capability deficiencies.

      Expeditions emphasizes a focus on sovereignty, intending to foster the development of military technologies that Europe can independently manufacture and control, rather than relying on imports amid the urgency created by the Ukraine conflict.

      Founded in 2021 by Dr. Mikolaj Firlej and Stanislaw Kastory, Expeditions operates at the intersection of security and deep tech, investing in dual-use areas such as cybersecurity, intelligence, autonomy, AI, quantum technology, communications, and space.

      The firm is not new to this sector, claiming to have supported nearly 30% of the 30 best-funded defense startups in Europe, with its initial fund backing companies like Alpine Eagle, Comand AI, Nu Quantum, and Labrys.

      Its list of limited partners includes notable names from European tech investment, featuring BAE, the NATO Innovation Fund, Poland’s Polish Development Fund, and several early executives from companies like Skype, Wise, Bolt, and Snowflake.

      BAE’s participation adds a unique element; the UK's largest defense contractor invested €25 million in Expeditions and another €25 million in Klaus Hommels’ Lakestar as part of its Launchpad initiative. Launchpad is strategically designed to facilitate both the commercialization of BAE’s laboratory technologies into startups and to support external founders who can innovate within the defense sector, according to Dave Ewing, BAE’s chief of commercialization.

      Being a limited partner allows a prime contractor to mitigate risk while benefiting from promising fast-growth companies in the defense space, like Berlin's Stark, and simultaneously providing founders access to BAE's extensive customer network across defense, energy, and manufacturing.

      Firlej highlighted the critical nature of security when announcing the BAE partnership in June, stating, “Our security can no longer be assumed; it has to be built,” suggesting that the pioneers developing solutions must produce results quickly rather than over extended periods.

      This strategic timing correlates with significant geopolitical events; Russia's war on Ukraine and the EU’s ReArm Europe initiative, which aims to mobilize up to €800 billion, have transformed defense technology from a previously avoided investment category into a highly attractive one, drawing interest from space and dual-use startups that previously steered clear of military applications.

      Expeditions is not operating in isolation; Lakestar is also raising around $300 million for a defense vehicle, and the NATO Innovation Fund is establishing a network of specialized defense venture capital firms throughout the alliance.

      The shift in investment dynamics is notable, with European defense, security, and resilience startups raising a record $8.7 billion in 2025, nearly double the total from the preceding year, as reported by Dealroom and the NATO Innovation Fund.

      Next up is the deployment phase. Expeditions has begun issuing checks from Fund II, supporting companies like Lendurai and Orasio, and the €197 million fund provides flexibility to respond swiftly as governments across Europe ramp up defense spending. The firm commits to supporting founders over the long haul, offering both patient capital and its team’s operational know-how.

      For a fund established in 2021, prior to the current rush for investment, this closing validates Expedition's strategy. The true challenge ahead lies in whether the startups it supports can transform their ambitious goals of sovereignty into tangible capabilities, as government contracts become primary sources of revenue, with larger investments than ever being made.