UK-based Molten Ventures, one of Europe's most active LPs, is shifting its strategy to target specialist VC funds as mega-trends like defence and space attract growing public and private capital for startups.

The LP aims to allocate 60% of new commitments to managers with deep industrial know-how, particularly in sectors where government spending is surging. 32-41% of European VC funding now flows into deep tech and defence-related categories.

Molten Ventures' partner emphasized the need for GPs who can navigate complex regulatory landscapes and dual-use technologies. The firm has deployed 8108 million across its portfolio since inception.

With 81% of LPs increasing alternative allocations, competition for top-tier specialist funds is intensifying. Molten Ventures plans to close its next fund at 65 million euros by Q4.