UK Government Courts European Venture Capital for Defence Innovation
The UK government has engaged European venture capital firms to secure private investment in its defence sector, supporting plans to boost spending to 2.5% of GDP by 2027. The initiative, led by Defence Minister John Healey and Finance Minister Rachel Reeves, aims to secure ethical investments that deter adversaries while empowering British tech and defence companies.
Published on April 3, 2025
On April 2, 2025, the UK government met with European venture capital firms to encourage private investment in the defence sector. Defence Minister John Healey, hosting the event with Plural and Ten Eleven Ventures, outlined how these partnerships could act as an ethical investment for continental security and help deter potential adversaries.
This move comes on the back of Prime Minister Keir Starmer’s commitment to boost defence spending to 2.5% of GDP by 2027—the largest increase since the Cold War. In parallel, Finance Minister Rachel Reeves has set out plans to transform the UK into a defence industrial superpower by incorporating an extra £2.2 billion into the sector, potentially unlocking significant funding for British tech and defence firms.