European Commissioner for Defence and Space Andrius Kubilius, speaking on 1 June 2026 at the European Business Angel Network (EBAN) Congress in Vilnius, called on business angels to invest in defence and space start-ups, arguing that Europe needs a Defence Single Market to foster innovation and scale up production. He announced the launch of a second Defence Equity Facility later this year, with a budget of 1 billion euro, five times larger than the current facility, aiming to mobilise additional private capital.
Kubilius outlined the EU's increased defence spending, noting that Member States pledged to spend 3.5% of GDP on defence by 2035, potentially reaching 6.8 trillion euro, and that the next Multiannual Financial Framework proposes 130 billion euro for defence and space. He also highlighted the 150 billion euro in SAFE loans and 60 billion euro in Ukraine support loans already committed. However, he argued that without a single market for defence, Europe remains stuck in "yesterday's war" and cannot scale up its defence industry.
The Commissioner criticised the current system where up to 80% of defence procurement is done through direct awards by national governments, protecting traditional primes and leaving no space for start-ups and SMEs. He pointed to Ukraine as a model, where innovative supply from start-ups transformed military demand, leading to a 50-fold increase in defence production since 2022. Kubilius urged the audience to join the fight for a Defence Single Market, which the European Commission will address in a special Communication at the end of June.
To support innovation, Kubilius highlighted the Bravetech EU initiative with Ukraine and the new AGILE programme, designed to get products to market quickly with grants within four months and project timelines of one to three years. He also noted the success of the current Defence Equity Facility, which has nearly mobilised its full 500 million euro target, prompting the launch of a 1 billion euro second facility. In space, he promoted the CASSINI seed fund, which has already mobilised nearly 1 billion euro in private investment, and the upcoming Scaleup Europe Fund for larger investment rounds.
Kubilius concluded by framing the investments as essential for European competitiveness and strategic autonomy, particularly to deter Russian aggression. He noted that 65% of defence tech investment in the EU currently comes from the US, which he said undermines strategic autonomy, and called on European private capital to step up.
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