BERLIN (Realist English). Germany’s newly launched Speer Group has entered the defence investment arena with a mission to close a persistent funding gap for early-stage security and defence technology ventures. In an exclusive interview with RUSI, the group’s founders outlined how their venture capital fund — the first of its kind in Germany — seeks to strengthen Europe’s industrial resilience in the face of growing geopolitical threats.
Max Buechner, CEO and founder of Speer Group, and David Colombo, a member of the group’s advisory board, described a market that is increasingly hungry for disruptive technologies but structurally unprepared to support the companies that can deliver them.
«In Germany, we are facing a serious funding gap for growth capital in security and defence, which is partially due to ESG criteria», said Buechner. «With Speer Fund II, we aim to bridge this gap by providing seed and growth capital to early-stage ventures.»
Europe’s defence sector is under strain as governments scramble to rebuild military stockpiles depleted by aid to Ukraine and decades of underinvestment. Production backlogs, fragile supply chains and dependency on non-European technologies have exposed vulnerabilities. While innovation hubs are flourishing, many startups still face the so-called “valley of death” — the stage between early public funding and first major procurement contracts.
In the commercial tech world, this gap is often bridged by venture capital. But defence remains a difficult sell for many investors: the sector’s monopsonic structure — with governments as the primary customer — high entry costs, and historic aversion due to ethical or ESG concerns have kept mainstream capital at bay.
The Speer Group wants to change that.
«We need a convergence of startups, major defence contractors, public institutions and the armed forces», said Colombo. «Only through strategic cross-collaboration can we build true resilience. Our fund is designed to identify critical capabilities, connect stakeholders, and scale solutions with impact.»
Strategic capital and domain expertise
Unlike traditional funds, Speer Group positions itself not just as a financial backer, but as a strategic partner offering military insight and access to defence networks. The fund targets high-potential ventures across Europe developing breakthrough technologies in defence and security — areas where conventional funding mechanisms often fall short.
«In the U.S., defence VC is well established. In Germany, there’s capital for ideas, but almost none for scale. That’s where we come in», Buechner noted. «We offer smart money — not just capital, but guidance rooted in operational and defence sector knowledge.»
Germany’s pivot on defence under Chancellor Olaf Scholz’s Zeitenwende has made the political climate more receptive. Public and institutional support for security-related innovation is rising, and the Speer Group hopes to catalyse momentum with a structured, professional investment approach tailored to the defence market.
As European governments push for autonomy in critical technologies and industrial capabilities, defence-focused venture capital is emerging as a crucial enabler. The Speer Group represents a bet that investors — and policymakers — are ready to treat national security as not just a policy challenge, but a viable, necessary investment class.
