One of Europe’s most active LPs is looking for VCs with ‘industrial know-how’

UK-based Molten Ventures, a leading European limited partner (LP), is reevaluating its investment strategy to seek out venture capital (VC) funds with expertise in specific industries. This shift is driven by the growing influence of sectors such as defence and space, which are increasingly attracting both public and private funding for startups.

Anne Sraders, a senior reporter at Sifted based in Berlin, covers the VC industry and deep-tech startups, providing insights into the changing landscape through her weekly VC newsletter, Up Round.

The UK government’s defence prime, BAE Systems, has demonstrated its commitment to the sector by investing €50 million into VC funds Lakestar and Expeditions. This move underscores the prime's intention to support defense startups through a dedicated incubator program. As BAE Systems continues to allocate significant resources to this space, it becomes evident that Middle Eastern investors will continue to play a crucial role as a key source of capital for European LPs.

Recognizing the importance of defence in shaping the future of European startups, Denmark’s sovereign wealth fund, EIFO, has also made it a top priority. As one of Europe’s most active LPs, EIFO is actively seeking partnerships with VC funds that possess the necessary industrial know-how to navigate the complex landscape of defense and space startups, ensuring that Denmark remains at the forefront of innovation in these fields.