Bessemer Commits Unlimited Investment to European Defense Technology

American venture capital firm Bessemer Venture Partners announced unlimited investment capacity for European defense technology startups. The $19 billion fund is making a major continental bet.

London-based partner Alex Ferrara spoke at the Resilience Conference, explaining Bessemer's strategy. The firm plans roughly $1 billion in defense tech investments across approximately twelve European deals over the coming years.

Bessemer is targeting aerial defense, space technology sovereignty, subsea drones, advanced manufacturing, and command systems. Check sizes range from $1 million to $200 million, depending on the company's stage.

Ferrara argued Europe holds unique advantages in certain defense domains. Many European nations face immediate aerial and border threats, giving startups focused on affordable drone interception and autonomous systems a competitive edge. He noted America remains physically distant from these challenges.

Rare-earth materials and high-precision manufacturing represent key industrial foundations for future sovereign defense investment. Europe may catch up or surpass traditional markets in these areas.

The firm particularly wants early-stage or second-round European deals. Ferrara emphasized backing strong technical teams, including first-time founders, addressing meaningful defense or dual-use problems.

Bessemer plans to expand its European presence by hiring local staff and deepening regional deal flow. No new positions were listed during the interview, though intentions remain clear.

Export controls, government procurement timelines, and dual-use regulations create complex hurdles. Ferrara acknowledged limitations around high-risk geographies like Ukraine. Teams based in such regions must incorporate elsewhere for investment eligibility.

He compared the current European defense innovation wave to the transformative enterprise cloud boom from the mid-2000s. For European founders in dual-use, AI, autonomy, or space technology, major American VCs now treat defense tech as mainstream rather than niche. Bessemer's unlimited investment declaration sets a new benchmark for the sector.