Earlybird and AVP Join Forces to Raise €500M Defence Fund
Berlin-based Earlybird Venture Capital and Paris-based AVP formerly AXA Venture Partners are joining forces to raise a new €500 million defence-focused fund, according to two sources familiar with the matter, as reported by Sifted. The Earlybird AVP defence fund would be structured as a joint venture, a rare arrangement in the European VC landscape where most firms operate independently.
A Rare European VC Partnership Eyes the Defence Boom
Earlybird, founded in 1997, has built a nearly three-decade track record and currently manages €2.5 billion in assets across its various fund strategies, with a deepening focus on defence and deeptech. AVP, originally founded in 2015 as the corporate venture arm of French insurer AXA before becoming independent through a management buyout, manages approximately $2.2 billion in assets and backs prominent companies across enterprise software, fintech, and digital health.
The timing of the Earlybird AVP defence fund is deliberate. European defence and resilience startups hit $8.7 billion in 2025, and capital is realigning fast. The EU’s Defence Equity Facility a €175 million initiative co-financed by the European Defence Fund expected to unlock over €500 million in support of European companies developing dual-use technologies, creating fertile ground for well-positioned funds.
AVP completed a management buyout following AXA’s decision to sell its asset management arm and now operates as a fully independent entity, giving it more strategic flexibility for partnerships like this one.
Neither Earlybird nor AVP has officially confirmed the fund. But with geopolitical pressure pushing European governments to accelerate defence spending and institutional capital now flowing decisively toward dual-use technology, this reported joint venture signals where the smart money in European VC headed next.
