US VC Invests in Burgeoning European Defense Tech

Former CIA officer Eric Slesinger is bucking the trend. While many American VCs focus on AI or US-based defense tech, Slesinger's 201 Ventures has raised a $22 million fund dedicated to seed-stage European defense tech startups.

From CIA to VC: A Strategic Shift

Slesinger's unique career path stems from recognizing the private sector's growing role in global security. He identified a critical shift from government-led defense to increasing private sector involvement.

I left the CIA because I noticed the private sector was increasingly playing a role in this competition, previously understood as government-to-government.

With degrees from Stanford and Harvard Business School, Slesinger is uniquely positioned to bridge the gap between defense technology and commercial ventures.

Why European Defense Tech?

Slesinger highlights three key factors driving his focus on Europe:

  • High-caliber European entrepreneurs
  • European governments re-evaluating their security strategies
  • Europe as a key area of "gray zone" competition

Slesinger also noted a cultural hesitancy towards defense investments in Europe, which he observed after moving to Madrid in 2022. He founded the European Defense Investor Network to foster open discussion and collaboration among entrepreneurs, investors, and policymakers.

Changing Tides in European Defense

The landscape is changing. The NATO Innovation Fund, backed by 24 NATO allies, has spurred investment in the sector. High-profile startups like Munich-based Helsing, valued at over $5 billion, are attracting significant attention.

201 Ventures' portfolio includes companies like Delian Alliance Industries, developing surveillance technology to counter autonomous threats, and Polar Mist, a Swedish maritime drone startup. Slesinger focuses on technologies addressing "gray zone" competition, anticipating its continued prevalence in Europe.

Challenges and Opportunities

Defense tech startups often have longer development timelines than traditional venture investments. Slesinger acknowledges this challenge and the need for strategies to accelerate growth. He also advocates for earlier-stage lobbying by European companies.

Despite these challenges, Slesinger's early vision is gaining traction. European defense tech startups raised $5.2 billion in 2024, surpassing even AI funding, according to data from the NATO Innovation Fund and Dealroom. With evolving geopolitical dynamics, this upward trend is expected to continue.