Manners
European venture capitalists are not a shy bunch and loud overconfidence is the norm. But where are all the VCs when it comes to defense?
Why is nobody in Europe shouting about national sovereignty, defending democracy, and patriotic capitalism?
European venture capitalists are absolutely terrified of talking about defense.
The conversation on intelligence and defense technology has been relegated to back rooms, behind private club doors and with hushed tones. It’s seen as uncouth and dirty, a topic that shouldn’t be discussed in polite company. It’s bad manners.
A partner at a well-known European VC firm once told me, “although we do it, we don’t say that we invest here,” barely even able to utter the word “defense” out loud.
To illustrate this: I bought www.europeandefense.org in June 2022, just four months after Russia invaded Ukraine. It cost me all of $22.32. The network for venture capitalists in Europe who care about national security and defense began with fewer than 10 people.
This fear of talking about, let alone funding, national security tech startups is bad for business and bad for Europe.
It’s time to normalize the conversation on defense tech. Technology that bolsters intelligence gathering capabilities, or improves national defense, not only strengthens our democracies, but is also foundational to the venture capital and tech world as we know it today.
Because European VCs came of age with consumer tech and then a software-as-a-service boom, they have no equivalent to the birth of venture capitalism in Boston and Silicon Valley: to fund American technologies to compete during the Cold War.
Semiconductors, computing, cryptography, and advanced materials were the original “dual-use” technologies of Silicon Valley. It’s no coincidence that each of these sectors is back in vogue today.
The limited partners that fund venture capital firms are part of the problem. These family offices, high net worth individuals, endowments, and pension funds are sometimes unwilling to take a creative look at well intentioned but poorly written ESG policies. Remember: there is no E in a warzone, there is no S among oppressed people, and there is no G without a functioning government.
To change for the better, European venture capitalists should take a few truths to heart.
First, follow history as closely as you follow trends, for it tends to repeat itself. Second, put your mouth where your money is: if you have money from European limited partners who value their security and freedom, tell them they should support you in backing companies with dual use defense technology. Finally, embrace people with bad manners, because they’re the ones that think differently.
A non-exhaustive list of American venture capitalists writing about defense:
