Fundraising Announcement and Strategic Context

360 Capital, a French‑Italian early‑stage venture capital firm operating from Paris and Milan, announced the successful raise of €85 million for a new deep‑tech fund. The capital comes from at least one European defence prime, marking a clear pivot toward harder, longer‑horizon technologies that align with Europe’s reindustrialisation agenda. The firm now manages more than €500 million in assets, and the new vehicle is positioned to invest in dual‑use technologies that blend software, hardware and national security applications.

Why Defence Money Is Flowing Into Deep‑Tech VC

Historically, European defence primes have relied on internal R&D and established supply chains rather than seed‑stage venture funds. The invasion of Ukraine in 2022 accelerated a shift, as defence contractors seek rapid modernisation and recognize that breakthrough technologies are emerging outside traditional defence ecosystems. By taking limited‑partner positions in venture funds, primes gain technology access and strategic intelligence, while providing startups with a potential procurement channel that has historically been difficult to navigate due to slow, fragmented national procurement processes.

Fund Structure and Expected Benefits

The involvement of a defence prime as a cornerstone limited partner does more than supply capital; it offers portfolio companies a route to procurement conversations and a degree of credibility with European defence ministries. This anchor relationship is intended to mitigate the traditional obstacles European defence startups face, such as lengthy acquisition cycles and resistance to early‑stage collaborations.

360 Capital’s Track Record and Investment Focus

Founded in 2001, 360 Capital has navigated multiple cycles of European technology investment, ranging from internet‑era digital startups to its current emphasis on deep‑tech and climate technology. Its existing portfolio spans early‑stage companies in artificial intelligence, robotics, energy technology and advanced materials—sectors that the new fund is likely to extend further into defence‑adjacent applications. The €85 million raise follows a 2024 announcement of a €30 million tranche for 360 Digitaly, a fund focused on digital transition, underscoring the firm’s diversified approach to technology investment.

Implications for the European Startup Ecosystem

The fund’s launch signals a growing acceptance among European institutional investors that deep‑tech, especially dual‑use technologies, can deliver strong returns over the next decade. The European Investment Fund’s €50 million commitment to Join Capital’s Fund III under the InvestEU Defence Equity Facility further illustrates institutional backing for this model. As more defence primes engage with venture capital, European startups may find new pathways to scale, leveraging both private capital and strategic defence relationships to accelerate commercialization.

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