Lakestar closes $300M Resilience I defence fund, warns Europe off US reliance
What's the deal? Lakestar has closed Resilience I at USD 300 million to back dual-use and defence technology startups across Europe and other Nato-allied countries. Founder and chairman Klaus HommelsDealroom has a profile for this one. Try Dealroom → says the fund was oversubscribed, with investor interest significantly exceeding the target, and describes it as Europe's largest institutional venture fund built exclusively for defence and dual-use companies, raised from private capital. Backers include UK defence group BAE SystemsDealroom has a profile for this one. Try Dealroom →.
Many years in the making. Hommels frames Resilience I as the formalisation of a mission he first articulated in 2019. He made his first defence investments almost a decade ago, when the category was widely considered uninvestable, and set out his conviction in a keynote titled "Cold War 2 and the Role of Tech": that sovereignty and advancing Europe's capabilities in critical technologies should be a core concern for all. He signalled in 2024 that Lakestar would stop raising generalist venture funds to focus on Europe's resilience, pledging to invest more than €100 million of his own money in defence startups that year.
Why now? Investor appetite for defence tech is rising as European governments prepare for higher military spending after Russia's 2022 invasion of Ukraine. The wider use of drones is also lifting demand for firms supplying new military capabilities. Hommels argues Europe must reduce its exposure to American technology suppliers and capital providers, pointing to recent US restrictions on exports of sensitive AI models by AnthropicDealroom has a profile for this one. Try Dealroom → as evidence that governance over critical defence technology must remain European "in any escalatory scenario."
The portfolio. Lakestar's defence portfolio spans autonomous systems, AI-driven defence software, drone manufacturing, missile technology, and space and maritime platforms. Hommels says these companies together employ more than 5,000 experts and have raised over USD 5 billion in private capital, with several already household names and others still operating in stealth. Named holdings include UK drone interceptor company Cambridge Aerospace, German defence-AI firm Helsing, and rocket startup Isar Aerospace.
Who's involved? Lakestar has appointed former US secretary of state Mike Pompeo, former UK chief of defence staff General Sir Nicholas Carter, former German armed forces chief of staff General Volker Wieker, and UK technology entrepreneur Baroness Martha Lane Fox to the fund's advisory board. Hommels also chairs the Nato Innovation Fund's geopolitical and strategic advisory council.
What could go wrong? Hommels says this year is critical for European defence startups to prove their systems work and to secure military procurement contracts. He is calling for mergers among European defence firms so they can build larger competitors with better odds of winning deals and mobilising private capital.
The signal: Lakestar's shift from generalist investing to a dedicated defence fund reflects a broader European bet that security, industrial capacity, and sovereign control over critical technology are becoming inseparable from venture strategy.
Read more: Klaus Hommels (LinkedIn) · Lakestar (LinkedIn) · Traders Union
Image credit: mark6mauno
