Poland’s defense sector has long lacked a dedicated venture investment framework. Now, the country is preparing to address this gap with the launch of the ambitious €100 million Polish Defence Fund (PDF), which will invest in cutting-edge defense and dual-use technologies. 

By supporting startups and small-to-medium enterprises (SMEs), the PDF seeks to enhance Poland’s strategic autonomy, strengthen economic resilience, and establish the nation as a key player within NATO’s innovation ecosystem. Sources associated with the initiative shared a briefing about the upcoming fund with AIN.

Why does Poland need its own defense fund?

Poland’s defense sector has historically lacked a dedicated venture investment framework. Despite a significant contribution to the NATO Innovation Fund (€50 million), Poland has not reaped proportional benefits, with limited investments in its domestic technology landscape. 

According to the sources, the PDF aims to reverse this trend by targeting key gaps in capital availability, ecosystem support, and scalability for local defense and dual-use technology companies.

With $30 billion in annual global defense tech investments, the PDF positions Poland and NATO as competitive innovators, drawing inspiration from U.S. In-Q-Tel and Estonia’s Defence Fund.

About the Polish Defense Fund

Investment focus

The PDF will focus primarily on defense and dual-use technology sectors, including:

  • Artificial Intelligence (AI);

  • Unmanned Systems (air, land, sea);

  • Advanced Materials and Stealth Technologies;

  • Resilient Communication Systems;

  • Optoelectronics.

Operational structure

Initial funding of €100 million, with a controlling 51% stake held by the Polish state (directly or indirectly).

Additional funding sourced from domestic institutions (e.g., State Development Fund, Polish National Development Bank) and international investors, such as the NATO Investment Fund.

Strategic goals

The fund is aiming to achieve the following strategic goals:

  • Develop critical technologies for national and allied security.

  • Close the existing innovation gap in Poland’s defense sector while positioning it as a key player in the NATO and allied innovation ecosystem.

  • Create over 3,000 high-skilled jobs, with a focus on long-term technology transfer and production capabilities in Poland.

  • Foster technological sovereignty through collaborations that enhance both domestic and regional production and innovation.

How will it work

To ensure these resources are utilized effectively, the PDF has outlined several key strategies to guide its investment decisions:

  • Target Companies: The PDF prioritizes companies with proven Proof of Concept (PoC) solutions and first commercial clients, focusing on those contributing directly to Poland's national security.

  • Collaboration: Close alignment with Poland’s Ministry of National Defense and Armed Forces ensures the fund addresses military priorities while maintaining flexibility for dual-use applications.

  • Advisory and Ecosystem Development: A dedicated Advisory Committee will bridge gaps between military end-users and the technology ecosystem.

What’s next and when is the launch?

The fund is currently in the consultation phase, where key stakeholders and experts are shaping its structure and priorities. Its official launch is anticipated following the finalization of legal, strategic, and financial frameworks. AIN will provide comprehensive coverage as soon as the fund is officially launched.