# BAE Systems puts EUR50m into European defence-tech, EUR25m of it into venture funds led by Lakestar and Expeditions: a prime contractor turning fund investor as Europe's rearmament money starts reaching the start-up cap table.
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## Public content

**issue:** 5
**type:** pulse
**date range:** 16 Jun 2026
**tagline:** BAE Systems puts EUR50m into European defence-tech, EUR25m of it into venture funds led by Lakestar and Expeditions: a prime contractor turning fund investor as Europe's rearmament money starts reaching the start-up cap table.
**published at:** 2026-06-17
**sections:** 
  -     **body:** On **16 June** **BAE Systems**, the UK's largest defence company, committed **EUR50 million** to back European defence-tech start-ups, with **EUR25 million** flowing into two venture funds led by **Lakestar** and **Expeditions**. It is the second stage of the firm's **Launchpad** programme, which both spins BAE's own technology into commercial markets and backs outside founders bringing something new to defence.

The pitch to start-ups is not only capital. BAE is offering **route to market**: access to its customers across **defence, energy and advanced manufacturing**, the door most early-stage defence-tech firms cannot open on their own.
    **emoji:** 🛡️
    **label:** FUNDING
    **heading:** A prime contractor turns LP
  -     **body:** Europe's security spending is no longer only a government story. A **prime contractor acting as a limited partner** in venture funds means strategic, patient capital entering defence-tech rounds that pure financial VCs long avoided on **ESG or dual-use grounds**.

For founders there is a structural point worth noting. Because BAE is an **LP in the fund**, not a direct shareholder in your company, taking that money does **not** put a corporate on your cap table, so your **SME status and EIC eligibility stay intact**. Target a Lakestar- or Expeditions-backed round for the customer access, and keep the strategic giant one level removed.
    **emoji:** 🎯
    **label:** WHY IT MATTERS
    **heading:** Rearmament money reaches the cap table

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