Bae Systems Puts €50 Million Into Lakestar and Expeditions
bae systems committed €50 million to two European defence-tech funds, splitting the money evenly between Lakestar and Expeditions as the second phase of its Launchpad programme. The deal is designed to push early-stage defence technologies closer to deployment, giving founders capital and BAE a direct line to new products.
€25 million is going to each fund, with Lakestar led by Klaus Hommels and Expeditions based in Warsaw and co-founded by Mikolaj Firlej. For defence-tech startups, the cash is part funding round, part distribution channel: Launchpad is meant to bridge the gap between prototype and deployment, while BAE said the program also connects external founders with customers in energy, advanced manufacturing and defence.
Klaus Hommels and €25 million
€25 million for Lakestar lands with Hommels after he stepped down last year as chair of the NATO Innovation Fund and said he would stop raising generalist VC funds. Hommels has previously backed Skype, Spotify, Airbnb, Klarna and Revolut, but his current focus is defence, aerospace and resilience.
“Europe is at a pivotal moment in redefining its security and technological sovereignty and supporting the next generation of defence tech founders will be critical to that effort. BAE Systems’ investment is significant as it brings together capital, deep sector expertise and access to markets to accelerate the development and deployment of the capabilities Europe needs to remain secure in an increasingly complex world.”
Warsaw's Expeditions Fund
€25 million is also reserved for Expeditions, the Warsaw-based fund co-founded by Firlej. He said, “Our security can no longer be assumed; it has to be built. Its architects will be the founders deploying innovative products at scale, in weeks and months rather than years, drawing on lessons from the frontline.”
55% growth in European defence, security and resilience startup funding helped frame the timing of the investment: startups in the region raised a record $8.7 billion in 2025, almost four times the level of five years earlier. FCF Corporate Finance said the European defence tech VC market grew at a compound annual rate of 69% from 2021 to 2025, while Lockheed Martin increased its corporate venture fund to $1 billion.
Launchpad Before June Ends
BAE Systems, the UK’s largest defence contractor with more than 110,000 employees in 40 countries, said the investments remain subject to final agreement expected before the end of June. That leaves the main risk in the paperwork, not the strategy: the capital is mapped out, but the transfer still has to clear the final agreement stage before either fund can treat the money as settled.
