This U.S. Venture Capitalist Makes an Innovative Move into European Defense Technology Investment

Venture capitalists typically work together, but Eric Slesinger stands out. While most U.S. investors target AI startups or domestic defense technology, the former CIA officer is exploring defense tech opportunities throughout Europe. Recently, Slesinger, the founder of 201 Ventures, closed a $22 million fund focused on seed-stage European defense tech startups. His shift from creating tools for CIA operatives to potentially becoming the sole American VC dedicated entirely to European defense technology is truly remarkable.

What drives someone to leave “the best first job ever” at the CIA for such a distinctive mission? In a recent TechCrunch podcast, Slesinger shared that he has noticed a significant change that many fail to recognize. “I left because I understood that the private sector was increasingly crucial to a competition I previously viewed as only between governments,” he stated. “With every passing day, it became clearer that the private sector was assuming a major role in this.”

Holding degrees in mechanical engineering from Stanford and an MBA from Harvard, Slesinger has the knowledge to connect defense technology with commercial ventures. His willingness to challenge conventional thinking has attracted interest from investors, founders, and tech journalists alike.

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

When it comes to what U.S. VCs often overlook, Slesinger highlights three key insights. 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, resulting in a lack of urgent engagement.” Lastly, he points out, “Europe is swiftly becoming—and is likely to remain—the battleground for significant gray zone competition,” which refers to actions by state or non-state actors occurring in the intermediary space between peacetime and wartime.

One unexpected challenge Slesinger faces in Europe is the cultural reluctance toward defense investments. After moving from the U.S. to Madrid in 2022, he launched the European Defense Investor Network, which brings together entrepreneurs, investors, and policymakers. In a 2023 Medium article, Slesinger observed that many of his European VC colleagues were hesitant to discuss their defense investments. Unlike in the U.S., he remarked to TechCrunch, defense technology investment in Europe “is often seen as inappropriate, more of a private affair than a topic for polite conversation.” (Slesinger added with a smile, “I’m exaggerating a bit, but there’s a kernel of truth.”)

This cultural apprehension has resulted in “many founders contemplating defense ventures but ultimately avoiding launching a company in that area.” However, this trend is shifting. The NATO Innovation Fund—the first multi-sovereign venture capital fund, backed by 24 NATO allies and established in the summer of 2022 following the Russia-Ukraine conflict—has made a considerable difference, serving as a vital investor for 201 Ventures.

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

With eight investments to date, 201 Ventures is focusing on technologies that address gray zone competition because, as Slesinger asserts, it’s “occurring at a considerable scale in Europe and will continue for the next couple of decades.” He sees these market disruptions, whether from pricing inefficiencies or heightened governmental roles, as presenting valuable opportunities for alpha.

In addition to Delian, another of Slesinger’s investments is Polar Mist, a Swedish startup developing maritime drones with advanced navigation features. Other areas of interest include hypersonics and subsurface mapping.

Securing funding for defense tech startups can be challenging due to their longer development cycles compared to traditional VC investments. Slesinger acknowledged this challenge during his discussion with TechCrunch: “With a standard 10-year venture fund lifecycle, we must find ways to accelerate or slightly adapt our processes.”

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

These considerations prompt questions about the sustainability of his investments for backers. At the same time, his early vision for a more self-sufficient European defense ecosystem is becoming clearer to a growing number of investors, especially against the backdrop of 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 concentrating on defense and allied technologies raised 24% more capital in 2024 compared to 2023, reaching a total of $5.2 billion and surpassing AI funding. Given the potential return of President Donald Trump in January and the uncertainty surrounding U.S. commitments to European defense, this figure is projected to rise even further.