Klaus Hommels, the founder of venture capital firm Lakestar and an early investor in companies including Spotify and Revolut, has warned that Europe’s reliance on American technology and capital is becoming a strategic vulnerability.
Hommels has launched a $300 million “Resilience Fund” to invest in dual-use and defence technology companies across Europe and other NATO-aligned countries, arguing that the continent needs to build greater technological and financial independence.
Speaking to the Financial Times, Hommels said Washington’s recent decision to restrict the export of Anthropic’s sensitive artificial intelligence models was the latest indication that Europe could no longer take its dependence on US technology for granted.
“If you still haven’t got the message and believe the stories told by the salespeople of American technology companies, that is irresponsible,” he said.
“Being as independent as possible is essential. And that doesn’t just mean being independent in technology; it also means being independent in how you finance that technology.”
The new fund will focus on companies developing technologies with both civilian and military applications, as well as businesses operating directly in the defence sector. British defence group BAE Systems is among its investors.
Hommels, who also chairs the Geopolitical and Strategic Advisory Council of the NATO Innovation Fund, said last year that Lakestar planned to stop raising conventional general-purpose venture capital funds and instead concentrate on strengthening Europe’s resilience.
The fund’s advisory board includes former US Secretary of State Mike Pompeo, former British Chief of the Defence Staff Sir Nicholas Carter, former German Chief of Defence Volker Wieker and British technology entrepreneur Martha Lane Fox.
Europe’s defence technology sector has attracted growing investor interest since Russia’s full-scale invasion of Ukraine in 2022, as governments across the continent began increasing military spending. The war, together with the rapid spread of drones and other autonomous systems, has also accelerated technological change on the battlefield.
Lakestar has invested in several of Europe’s prominent defence technology companies, including UK-based Cambridge Aerospace, which develops counter-drone systems; German drone maker Helsing, valued at around $18 billion; and rocket company Isar Aerospace.
Hommels has been putting his own money behind the sector as well. In 2024, he said he planned to invest more than €100 million of his personal fortune in defence technology start-ups, arguing that Europe needed to strengthen its resilience even before Donald Trump returned to the White House.
He does not believe American venture capital investment in European defence technology is necessarily a problem. But he says ownership and governance structures matter.
“It is very important that the overall governance structure is in Europe,” Hommels said. “In a situation of escalating tensions, the governance structure needs to be in a position to put Europe’s interests first.”
He expects 2026 to be a particularly important year for European defence technology companies. With governments increasing procurement, start-ups will have an opportunity to demonstrate that their technologies work in real-world conditions and secure military contracts.
Hommels also believes the sector needs to consolidate. European defence technology companies should consider mergers in order to create larger competitors capable of winning major government contracts, he said.
For Hommels, the ability to mobilise private capital could ultimately prove to be Europe’s greatest advantage over its geopolitical rivals.
“Against China, Iran and Russia, our biggest advantage is our ability to mobilise private capital,” he said. “Once procurement contracts start being awarded, you feel that you have been accepted. You become part of the ecosystem, and the flywheel that mobilises private capital starts turning.”
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