The Dutch pension fund for the metal and technology sector, PME, is investing €40m in a high-tech defence fund from Keen Venture Partners.

The Keen European Defence & Security Tech Fund focuses on innovative European startups and scale-ups focusing on defence and security applications.

PME chairman of the executive board, Eric Uijen, said that PME has a “strong commitment” to the defence sector.

He continued: “Many of our employers produce defence equipment or are suppliers to the defence industry. We have also been investing in this sector for a long time. The urgency to invest and innovate in defence has only increased in recent years.

“Geopolitical realities are changing rapidly. In a world where international relations are under pressure, there is a growing awareness that we in Europe need to invest more in our security and resilience.”

The investment will see PME contribute to the development of the Dutch and European high-tech defence sector through advanced drone software, battery technology and radar detection.

Uijen added that the allocation is line with PME's policy to invest in innovative tech startups and scale-ups, strengthening technological progress and the competitiveness of the Netherlands and Europe.

“These investments are also expected to deliver above-average returns. Because ultimately that is what counts with all our investments: we invest for a good pension for our participants,” he said.

Keen's defence fund will be added to PME's broader portfolio and aligns with previous investments in innovation and high-tech funds Innovation Industries and DeeptechXL.

Keen Venture Partners general partner, Alexander Ribbank, said the decion for PME to invest in the fund was “significant”.

He added: “It is important that we build a strong innovative defence industry in Europe. Europe has given clear priority to security and defence. It is important that VC funds, which invest in promising start-ups and scale-ups, contribute fully to the ecosystem of established defence companies, knowledge centres and the financial sector."

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