This American Venture Capitalist Makes a Rare Investment in European Defense Technology

Venture capitalists typically band together, making Eric Slesinger stand out. While most American investors target AI startups or defense tech in the U.S., the former CIA officer is exploring defense tech opportunities in Europe. Recently, Slesinger, founder of 201 Ventures, closed a $22 million fund aimed at seed-stage European defense tech startups. His shift from developing tools for CIA operatives to possibly being the only American VC focused exclusively on European defense technology seems remarkably insightful.

What drives someone to leave “the best first job ever” at the CIA for this distinct mission? As Slesinger discussed in a recent TechCrunch podcast, the answer is his acknowledgment of a major shift that many have missed. “I left because I realized the private sector was increasingly becoming essential to a competition I had once perceived as solely between governments,” Slesinger explained. “Each day made it clearer that the private sector was assuming a substantial role in this.”

Armed with degrees in mechanical engineering from Stanford and an MBA from Harvard, Slesinger has the expertise to bridge defense technology with commercial ventures. His willingness to challenge conventional thinking has captivated investors, founders, and tech journalists.

“I’ve always enjoyed exploring areas where others often hesitate,” Slesinger noted. “That’s part of what made my time at the CIA so rewarding. A common piece of advice I heard was, ‘go where others don’t and do what they can’t.’”

In terms of what U.S. VCs often overlook, Slesinger highlights three main points. First, “Europe has entrepreneurs who are just as driven, innovative, and intelligent as anywhere else in the world.” Second, “European governments have taken far too long to reassess their security strategies, leading to a lack of critical engagement.” Finally, “Europe is swiftly becoming—and will likely continue to be—the battleground for significant gray zone competition,” referring to activities by state or non-state actors that occur between classic peacetime and wartime.

One surprising obstacle Slesinger faces in Europe is the cultural reluctance towards defense investments. In 2022, after moving from the U.S. to Madrid, he established the European Defense Investor Network, composed of entrepreneurs, investors, and policymakers. In a 2023 Medium article, Slesinger noted that many of his European VC colleagues were hesitant to discuss their defense investments. Unlike the U.S., he told TechCrunch, defense technology investment in Europe “is often seen as inappropriate, more of a private matter than a topic for polite conversation.” (Slesinger added with a smile, “I’m exaggerating a bit, but there’s a grain of truth.”)

This cultural apprehension has resulted in “many founders considering defense ventures but ultimately opting against launching a company in that domain.” However, this is evolving. The NATO Innovation Fund—the first multi-sovereign venture capital fund, backed by 24 NATO allies and launched in the summer of 2022 after the Russia-Ukraine conflict—has made a significant impact, acting as a crucial investor for 201 Ventures.

The growing awareness of emerging defense tech startups in Europe is noteworthy, such as Munich’s Helsing, which is developing battlefield AI and currently valued at over $5 billion. Another promising venture in Slesinger’s portfolio is Delian Alliance Industries, based in Athens, focused on surveillance towers for identifying autonomous threats. Delian has already secured seed funding and is attracting significant interest from VCs.

With eight investments thus far, 201 Ventures focuses on technologies addressing gray zone competition because, as Slesinger points out, it’s “occurring at a large scale in Europe and will continue to do so for the next couple of decades.” He believes these market disruptions, whether due to pricing inefficiencies or increased governmental roles, create valuable opportunities for alpha.

Alongside Delian, another of Slesinger’s investments is Polar Mist, a Swedish startup developing maritime drones equipped with cutting-edge navigation capabilities. Other areas of interest include hypersonics and subsurface mapping.

Securing funding for defense tech startups can be challenging due to their longer development timelines compared to traditional venture investments. Slesinger acknowledged this challenge during his conversation with TechCrunch: “With a standard 10-year venture fund lifecycle, we need to find ways to speed up or slightly modify our processes.”

Slesinger also emphasized that “European companies should engage in lobbying much earlier in their development.”

These factors raise questions regarding the sustainability of his investments for backers. At the same time, his early vision for a more self-reliant European defense ecosystem is becoming clearer to a growing number of investors amid rising geopolitical tensions, prompting a reassessment of security frameworks in Europe.

Data released earlier this year by the NATO Innovation Fund and the research organization Dealroom indicated that European startups focused on defense and related technologies raised 24% more capital in 2024 compared to 2023, totaling $5.2 billion and even exceeding AI funding. Given the potential return of President Donald Trump in January and the uncertainty surrounding U.S. commitment to European defense, this figure is projected to rise even further.