Analysis

August 8, 2025

European VCs are raising more specialist defence funds. Is it a good idea?

The boom in defence-focused funds could mirror the spurt of climate funds raised in the early 2020s which are now looking to rebrand

European VCs have grown increasingly eager to invest in defence startups as the industry has reached hype levels — and many of them are raising special defence funds to do it. It’s also resurfaced the age-old debate of whether it’s better to be a specialist fund or a sector-agnostic generalist.

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Anne Sraders

Anne Sraders is a senior reporter at Sifted, based in Berlin. She covers the VC industry and deeptech startups. She also writes Sifted's weekly VC newsletter Up Round. Follow her on X and LinkedIn

Miriam Partington

Miriam Partington was a senior reporter at Sifted, based in Berlin. She covered the DACH region and the future of work, and wrote Startup Life , a weekly newsletter on what it takes to build a startup.

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