In a landscape where venture capitalists typically flock to familiar territories, one investor is charting a different course. Eric Slesinger, a former CIA officer, is making waves by seeking out defense technology opportunities across Europe. While many American investors are preoccupied with artificial intelligence and domestic defense startups, Slesinger has recently established a $22 million fund dedicated to seed-stage defense tech companies in Europe. His journey from developing tools for intelligence agents to becoming a pioneering American venture capitalist in European defense technology is both intriguing and timely.
What drives someone to leave a prestigious position at the CIA to pursue a niche in defense technology? In a recent interview, Slesinger shared that he recognized a significant shift that many overlooked. He explained, “I departed because I observed that the private sector was increasingly influential in what I had previously perceived as a government-only competition.” This insight has proven to be a pivotal factor in his investment strategy.
With advanced degrees in mechanical engineering from Stanford and an MBA from Harvard, Slesinger is well-equipped to navigate the intersection of defense technology and commercial enterprise. His unconventional approach has garnered attention from investors, entrepreneurs, and industry analysts alike, making him a notable figure in the venture capital community.
“I have always found satisfaction in exploring areas that others tend to avoid,” Slesinger remarked. This philosophy echoes the sentiments he experienced during his time at the CIA, where the mantra was to “go where others don’t and accomplish what they cannot.” This mindset has fueled his current endeavors in the European defense sector.
From Slesinger’s perspective, American venture capitalists are missing out on three critical insights. Firstly, he believes that Europe is home to ambitious entrepreneurs who possess the same drive and intelligence as their counterparts worldwide. Secondly, he points out that European governments have been slow to reassess their security strategies, which has hindered innovation in the defense sector. Lastly, he emphasizes that Europe is increasingly becoming a battleground for gray zone competition, where state and non-state actors engage in activities that blur the lines between peace and war.
One of the most unexpected challenges Slesinger has faced is the cultural reluctance surrounding defense investments in Europe. After relocating to Madrid in 2022, he founded the European Defense Investor Network, which connects entrepreneurs, investors, and policymakers. In a recent article, he noted that many of his European colleagues were hesitant to discuss their defense-related investments openly. Unlike in the U.S., where defense tech investment is more accepted, Slesinger found that in Europe, it was often viewed as a taboo subject.
This cultural hesitance has led many potential founders to shy away from launching defense-focused companies. However, this trend is beginning to shift. The NATO Innovation Fund, launched in 2022 in response to the geopolitical climate, has emerged as a significant player in supporting defense tech ventures, including Slesinger’s fund.
As the European defense landscape evolves, startups like Munich-based Helsing, which is developing AI for battlefield applications, are gaining traction and attracting substantial investments. Another promising company in Slesinger’s portfolio is Delian Alliance Industries, based in Athens, which is creating surveillance technologies to counter emerging threats. With a growing interest in defense tech, these companies are becoming increasingly appealing to venture capitalists.
To date, Slesinger’s fund has made eight investments, focusing on technologies that address the complexities of gray zone competition. He believes that these market disruptions present unique opportunities for investors, as they navigate the evolving landscape of European defense.
However, funding defense tech startups comes with its own set of challenges, particularly regarding longer development timelines compared to traditional ventures. Slesinger acknowledges this tension, stating, “With a typical 10-year venture fund lifecycle, we must find ways to adapt and accelerate our approach.” He also advocates for European companies to engage in lobbying efforts earlier in their development stages.
As geopolitical tensions rise and Europe reassesses its security strategies, Slesinger’s vision for a more autonomous European defense ecosystem is gaining traction among investors. Recent data indicates that European startups in the defense sector raised 24% more capital in 2024 than the previous year, surpassing even the funding levels seen in the AI sector.
With changing political dynamics and increasing uncertainty regarding U.S. commitments to European defense, the momentum in this sector is likely to continue growing.