The European Investment Bank is backing venture capital firm Join Capital as it raises its third fund, aimed at investing in defense companies. Join Capital is targeting €235 million ($273 million) and the EIB's European Investment Fund has committed €50 million, according to a statement Wednesday.

This marks the EIF's largest investment in the defense sector to date, signaling growing institutional support for European defense technology startups. The fund will focus on early-stage companies developing advanced military capabilities, cybersecurity solutions, and defense-related technologies.

Join Capital's previous funds have backed successful European tech companies, and this defense-focused strategy represents a significant pivot. The €50 million commitment from EIF provides crucial backing as European governments increase defense spending amid geopolitical tensions.