British defence prime BAE Systems announced a €50 million commitment to two European venture funds, allocating €25 million each to Swiss‑based Lakestar and Poland’s Expeditions. Both funds focus on defence‑tech startups, with Lakestar backing firms such as Isar Aerospace and Expeditions supporting Cambridge Aerospace. The move marks BAE’s first direct LP stakes in external VC vehicles, signalling its intent to broaden the defence innovation ecosystem.

The €25 million infusion pushes Expeditions’ new fund past €200 million in commitments, according to co‑founder Mikołaj Firlej. Lakestar, meanwhile, has been raising a $300 million defence fund since early last year. BAE’s chief technology and information officer Julian Cracknell said the company has been “actively looking” at LP roles since February, complementing its internal incubator that spins out research into startups.

Industry observers note that traditional European primes are turning to venture capital to accelerate innovation, a trend mirrored by Italy’s Leonardo, which recently described its acquisition appetite as “hungry wolves.” BAE’s partnership with Lakestar and Expeditions gives it early access to emerging technologies and a pipeline for integration into larger programmes, strengthening its competitive edge in a tightening defence market.