Blossom Capital is dipping into defence. Here’s what the VC is looking for

In recent times, venture capitalists (VCs) across Europe have shown a growing interest in investing in defence technology. This surge in activity is evidenced by the formation of dedicated funds and a flurry of new deals. Anne Sraders, a senior reporter at Sifted based in Berlin, covers the VC industry and deeptech startups, providing regular updates on European VC trends through her weekly newsletter, Up Round.

A notable development in this space is the emergence of VCs opting for dual roles, combining their investor positions with CEO or operator titles. This approach has been adopted by several early-stage deeptech startups, backed by top-tier venture capital firms during the first half of 2026. Notable among these investors are those who have recently reduced their investment teams to just two lead partners for their upcoming fund.

The increasing focus on defence tech is part of a broader trend among European VCs, who are targeting companies that tackle complex problems deemed previously too difficult to solve. These investors are not only backing innovative startups but also positioning themselves to capitalize on the recent funding frenzy in this sector.