Polish startups set to benefit from new €100M Defence Fund

Poland is stepping up to the global stage with the Polish Defence Fund (PDF)—a €100 million initiative to drive innovation in defence and dual-use technologies. 

Focused on startups and SMEs, the fund prioritises companies with proof of concept and commercial customers.  

The PDF is designed to bridge Poland’s defence innovation gap and create over 3,000 high-skilled jobs with a focus on long-term technology transfer and production capabilities in Poland. 

It aims to foster technological sovereignty through collaborations that enhance both domestic and regional production and innovation, while enhancing Poland’s strategic autonomy and economic resilience. 

Poland’s defence 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. 

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

With global defence investments surpassing $30 billion annually, this initiative ensures Poland remains competitive while enhancing its strategic autonomy and economic resilience.

Maciej Samsonowicz, advisor to the Minister of National Defense, Władysław Kosiniak-Kamysz, asserts that the need for the Armed Forces to achieve technological superiority has once again become apparent in the ongoing war in Ukraine. 

“Modern technologies – including autonomous systems and drones used on a large scale – have allowed Ukraine to repel aggression from a stronger opponent effectively.

This is one of the reasons why drone troops are being created in Poland at an accelerated pace.”

While the fund is in its formative stage, it aims to invest in areas such as:

• AI
• Unmanned systems (air, land, sea) 
• Advanced materials and stealth technologies 
• Resilient communication systems 
• Optoelectronics 

The capital structure consists of an initial funding of €100M, with a controlling 51 per cent stake held by the Polish state (directly or indirectly). 

Additional funding is to be sourced from strategic and financial investors, and financial institutions from EU, NATO or allied countries. 

The PDF prioritises companies with proven Proof of Concept (PoC) solutions and first commercial clients, focusing on those contributing directly to Poland’s national security. 

It is closely aligned with Poland’s Ministry of National Defense and Armed Forces, ensuring the fund addresses military priorities while maintaining flexibility for dual-use applications. A dedicated Advisory Committee will bridge gaps between military end-users and the technology ecosystem. ´

According to Samsonowicz, the project aims to develop defence and dual-use technologies by providing investment capital to Polish technology companies. 

“This will create an ecosystem of defence technologies that will enable the transfer of key technologies and know-how within the ecosystem itself and directly to Polish defence companies.

Poland will have the opportunity not only to maintain but also to transfer R&D and production capabilities to the country, which will significantly strengthen the local economy and ensure greater independence in the area of ​​defence.”

The fund is currently in the consultation phase, where key stakeholders and experts are shaping its structure and priorities. The launch is anticipated following the finalisation of legal, strategic, and financial frameworks. 

Lead image: Freepik.

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