360 Capital raises €85M for deeptech fund backed by European defence prime

European venture capital is increasingly aligning with national security interests, as evidenced by 360 Capital's recent €85 million deeptech fund. This new vehicle, backed by at least one major European defence prime, signifies a strategic shift towards investing in technologies with dual-use applications, bridging the gap between civilian innovation and defence needs. This trend reflects a broader European reindustrialisation agenda and a growing investor recognition of deeptech's long-term potential, particularly in sectors critical for national security and technological sovereignty. The fund's focus on deeptech, encompassing software, hardware, and national security intersections, comes at a time of heightened geopolitical awareness. Following the 2022 invasion of Ukraine, European defence contractors are re-evaluating their innovation strategies, moving beyond traditional R&D to embrace venture capital for faster access to cutting-edge technologies. This pivot is supported by institutional backing, such as the European Investment Fund's €50 million commitment to a similar deeptech fund, signaling a growing acceptance of this investment model for strategic technological development. For startups, this partnership offers more than just capital; it provides a crucial pathway to engage with defence procurement processes, historically a significant hurdle for early-stage companies. The involvement of defence primes as limited partners can facilitate crucial conversations, potentially streamlining the adoption of new technologies within national defence frameworks. This symbiotic relationship is vital for fostering a robust European deeptech ecosystem capable of meeting both commercial and security demands, thereby enhancing the continent's digital sovereignty.