Europe’s defence industrial base is no longer preparing for scale-up it has entered it.
For the first time in decades, public policy, sovereign instruments, and private capital are moving in alignment to rebuild Europe’s defence and security capacity. What was once fragmented is now forming a flywheel.
A recent analysis by Laurence Bottero in La Tribune (“Défense : comment acteurs publics et privés s’accordent pour financer sa montée en puissance”, 8 December 2025) captures just how fast this shift is happening and why dual-use innovation now sits at the core of Europe’s sovereignty strategy.
The Numbers Behind the Shift
France alone has committed €413B through 2030, with its 2026 defence budget up +13% to €57.1B.
Across the EU, up to €800B in combined public and private financing is expected to be mobilised by the end of the decade.
This is not cyclical spending.
It is structural re-armament.
What’s Changing on the Ground
Bottero’s article highlights several inflection points:
4,500+ companies form France’s defence ecosystem, supporting 220,000 jobs and €30B in annual turnover yet many SMEs remain undercapitalised and fragile.
Acquisition budgets are rising 37% to €22.9B, reflecting urgent pressure for faster equipment delivery.
Regions like Provence-Alpes-Côte d’Azur are becoming gateways to EU defence programmes, redirecting structural funds toward strategic industries.
The European Investment Bank has lifted long-standing restrictions, now financing €15–20M defence-sector projects — a major policy shift.
Bpifrance is expanding both working-capital solutions and equity, notably through its dedicated Bpifrance Défense fund.
The signal is unmistakable:
Europe is activating every available lever — public and private — to restore strategic autonomy.
Startups Are Central, Not Peripheral
One conclusion stands out:
Europe’s defence renaissance will be built with startups, not around them.
As Starburst Ventures notes, we are only at the beginning of a multi-year contract-market cycle that will define the next decade. Dual-use technologies designed with and for the forces are where strategic advantage will be created.
Technological superiority is no longer optional.
It is operational necessity.
Why This Matters for Karista
This is precisely where Karista is positioned.
Through K Tech II, currently raising, we invest at the intersection of:
Space
Defence
Security / Cybersecurity
Our Space, Defence & Security Fund, deploying from Q2 2026, focuses on dual-use technologies rooted in deep operational understanding of military and security needs.
What the article reinforces is what we see daily:
Public tools are opening
Private capital is mobilising
The timing is exceptional
The Bigger Picture
Europe’s sovereignty will not be declared.
It will be engineered.
And it will be built on dual-use innovation, resilient industrial bases, and founders who understand that defence is now a core pillar of Europe’s economic and strategic future.
This mission sits at the heart of Karista’s strategy.
