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Geopolitical instability across the globe is seeing European spending on defence technology surge
According to a report from Bloomberg, Deutsche Telekom and Porsche Automobil Holding SE are discussing the formation of a new venture capital fund aimed at investing in defence technology.
Anonymous sources say the companies are looking to raise €500 million, though the size and composition of the fund have yet to be confirmed.
The fund will reportedly be run by DTCP, an investment unit of Deutsche Telekom created back in 2015. Then known Deutsche Telekom Capital Partners, DTCP replaced the company’s older venture capital unit T-Venture, investing in various tech companies over the past decade. According to reports, the unit has “backed over 60 digital transformation companies in Europe, Israel and North America”, as of last year.
DTCP already has a preexisting relationship with Porsche, having co-created a $120 million fund called Incharge Capital, aimed at funding mobility and connectivity software startups, in summer last year.
For both Porsche and Deutsche Telekom, the creation of this found represents a growing desire to capitalise on the global political instability that is driving the European defence sector towards rapid growth. In a press release from Porsche, the company said the move would help it grow more diversified, seeing “considerable development potential in the defense and security sector”.
“On our way to becoming a diversified investment platform, we are closely monitoring the areas of defense capability, security and European resilience. With regard to portfolio investments, our aim is to increase our involvement in the defense and defense-related sectors while maintaining our core focus on mobility and industrial technology,” explained Hans Dieter Pötsch, chairman of the board of management of Porsche SE.
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