Klaus Hommels, a name that has swiftly become emblematic in European venture capital, finds himself both lauded and scrutinized for his prominent role in driving investments in European defence technology. As the founder of Lakestar, a Zurich-based venture capital firm, Hommels has built a reputation for spotting trends early, ranging from tech to geopolitically sensitive sectors like defence. However, as interest in defence startups surges in Europe amidst global tensions, his dual role as an advocate for European security and a venture capitalist has sparked both curiosity and controversy.
Driving European Defence Innovation: The Rise of Klaus Hommels
The Russian invasion of Ukraine in 2022 served as a catalyst for Europe to reassess its stance towards self-reliance and technological sovereignty in defence. Recognizing this shift, Hommels pivoted Lakestar’s focus toward defence and dual-use technologies. Defence tech investments in Europe have since seen exponential growth, with defence-focused startups like Helsing and Quantum Systems securing rounds of up to €200m. According to recent figures, venture capital investments in European defence tech have risen nearly fivefold since 2018.
Hommels’ firm Lakestar spearheads this trend, leveraging its extensive portfolio to connect startups with government and military R&D opportunities. For entrepreneurs, this presents a unique opportunity to tackle crucial issues in artificial intelligence (AI), cybersecurity, spacecraft technology, and more.
The Role of New Supporting Platforms
If you’re an entrepreneur looking to dive into this booming industry, platforms like the F/MS AI Grant Finder and Application Writer can be life-changing. This tool lets startups quickly identify relevant EU funding opportunities, draft grant proposals using AI-driven guidance, and access resources to bring their innovative ideas to life. The combination of venture capital funding and public grants, such as NATO-backed innovation funds, increases the chances of scaling startups while mitigating financial risks.
Moreover, for legal aspects, founders can turn to tools like AI Startup Lawyer, an accessible, AI-powered platform that demystifies legal jargon in startup agreements. By uploading documents, you can ascertain their fairness, negotiate effectively, and avoid common traps, especially in high-stakes sectors like defence with stringent regulatory landscapes.
Top Startups Riding the Defence Tech Wave
Here’s a closer look at the leading startups shaping Europe’s defence future:
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PlayPal, the AI Friend
Learn more about PlayPal, founded by Violetta Bonenkamp, PlayPal combines AI and personalization to create an engaging conversational assistant. Its multifunctionality in mental health support, language learning, and professional advice such as strategy discussions makes it adaptable for diverse use cases, including defence applications that require secure AI-human interactions. -
Helsing
As a defence unicorn, Helsing specializes in AI-powered intelligence solutions tailored for military applications, emphasizing operational efficiency and combat readiness. -
Quantum Systems
This startup focuses on autonomous drones for reconnaissance missions, enabling armies to make real-time strategic decisions on the battlefield. -
Iceye
Satellite imaging meets defence in Iceye, where radar-based imaging even in poor visibility conditions provides an unmatched advantage, from tracking assets to border control. -
DeepCode Solutions
Operating in cybersecurity, DeepCode uses advanced AI to identify and expose potential vulnerabilities in military-grade software.
For budding entrepreneurs, building in defence tech involves balancing innovation, ethical considerations, and regulatory compliance. Defence-type startups increasingly pivot to serve both civilian and military needs, creating highly scalable business opportunities in dual-use technologies.
How to Get Started: A Practical Guide for Entrepreneurs
Venturing into the defence tech industry doesn’t have to be daunting. Here’s a step-by-step guide to put your ideas in action:
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Identify the Problem
Use problem-first methodologies available in tools like F/MS Startup Game: Skill Lab and Sandbox to validate your concept of the problem. Defence typically solves issues in cybersecurity, supply chain resilience, and technological self-reliance. -
Secure Funding and Support
- Apply for grants through initiatives like the NATO Innovation Fund.
- Use services like the AI Grant Finder to identify non-dilutive funding sources available across Europe.
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Understand Legal Requirements
Defence tech industries are particularly sensitive to export controls, government procurement protocols, and dual-use certifications. Tools like AI Startup Lawyer ensure compliance and clarity in dealing with non-standard legal clauses. -
Develop and Test the Product
Defence relies heavily on rigorous testing for reliability and safety. Leverage the Sandbox by F/MS, supported by PlayPal, your AI co-founder, to validate and refine your concept iteratively. -
Network and Collaborate
Europe’s defence industries are becoming more interconnected. Participate in conferences like the Munich Security Conference or connect with hubs such as Malta Enterprise for insight and access to critical government programs.
Common Pitfalls to Avoid
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Ignoring Ethical Implications
With great power comes great responsibility. Defence and dual-use technologies inherently come with moral and societal consequences. Always consider the potential implications of your innovation. -
Overlooking Legal Protections
Especially with high-stakes issues like IP, export compliance, and strategic acquisition, failing to understand the legal terrain can jeopardize your startup’s success. -
Underestimating Funding Complexities
The public funding landscape in defence is challenging to navigate. Ensure you’re fully versed in the criteria and conditions of applicable grants by utilizing AI tools like the AI Grant Finder.
Closing Thoughts
Klaus Hommels’ role in shaping European defence tech may be polarizing, but his push for innovation has catalyzed one of the most transformative movements in VC history. For entrepreneurs with bold ideas, now may be the perfect time to step into the European defence tech arena. Supported by tools like PlayPal, the AI Friend and the F/MS ecosystem, you can confidently tackle systemic problems and collaborate in building Europe’s sovereignty in technology. By arming yourself with the right tools, resources, and networks, you are better equipped to navigate this complex but rewarding trillion-euro sector.
Be part of the change, drive innovation, and ensure Europe’s security in a volatile world, all while securing the future of your groundbreaking startup!
FAQ
1. Who is Klaus Hommels and why is he significant in venture capital?
Klaus Hommels is the founder of Lakestar, a Zurich-based venture capital firm, and is known for early investments in defense and dual-use technologies, positioning himself as a key player in European innovation. Learn about Klaus Hommels
2. Why did Klaus Hommels and Lakestar shift focus to defense tech?
The shift came after the 2022 Russian invasion of Ukraine, highlighting Europe’s need for technological sovereignty and defense innovation. Explore the context at MSC
3. Why is the European defense tech sector booming?
Geopolitical tensions and increased government support have fueled exponential growth, with investments increasing fivefold since 2018. Learn more about European defense startups
4. What are the top startups in European defense tech backed by Klaus Hommels?
Startups like Helsing (AI for military intelligence), Quantum Systems (autonomous drones), and Iceye (satellite imaging) are shaping the future of European defense. Discover Helsing and Quantum Systems
5. How does Lakestar aid startups in the defense space?
Lakestar connects startups to government and military R&D opportunities, helping them scale effectively. Check out Lakestar’s vision
6. What controversies surround Klaus Hommels and his investments?
Hommels faces criticism over potential conflicts of interest and the opacity of his investment structures in defense startups. Read the Sifted investigation
7. What role does the NATO Innovation Fund play in European defense tech?
The NATO Innovation Fund backs startups focusing on emerging technologies like AI, quantum computing, and autonomous systems. Learn more about NIF investments
8. What tools can entrepreneurs use to access funding in this sector?
Entrepreneurs can use AI tools like the F/MS AI Grant Finder and Application Writer to secure non-dilutive EU grants. Explore F/MS AI Grant Finder
9. How is Klaus Hommels shaping European security and autonomy?
Hommels advocates for Europe’s self-reliance through investments in defense tech, fostering strategic autonomy amid global conflicts. Check out MSC insights
10. What are the ethical concerns in investing in defense technologies?
Defence innovation brings ethical dilemmas, including dual-use implications and societal consequences of military applications. Explore Sifted’s ethical debate
About the Author
Violetta Bonenkamp, also known as MeanCEO, is an experienced startup founder with an impressive educational background including an MBA and four other higher education degrees. She has over 20 years of work experience across multiple countries, including 5 years as a solopreneur and serial entrepreneur. Throughout her startup experience she has applied for multiple startup grants at the EU level, in the Netherlands and Malta, and her startups received quite a few of those. She’s been living, studying and working in many countries around the globe and her extensive multicultural experience has influenced her immensely.
Violetta Bonenkamp's expertise in CAD sector, IP protection and blockchain
Violetta Bonenkamp is recognized as a multidisciplinary expert with significant achievements in the CAD sector, intellectual property (IP) protection, and blockchain technology.
CAD Sector:
- Violetta is the CEO and co-founder of CADChain, a deep tech startup focused on developing IP management software specifically for CAD (Computer-Aided Design) data. CADChain addresses the lack of industry standards for CAD data protection and sharing, using innovative technology to secure and manage design data.
- She has led the company since its inception in 2018, overseeing R&D, PR, and business development, and driving the creation of products for platforms such as Autodesk Inventor, Blender, and SolidWorks.
- Her leadership has been instrumental in scaling CADChain from a small team to a significant player in the deeptech space, with a diverse, international team.
IP Protection:
- Violetta has built deep expertise in intellectual property, combining academic training with practical startup experience. She has taken specialized courses in IP from institutions like WIPO and the EU IPO.
- She is known for sharing actionable strategies for startup IP protection, leveraging both legal and technological approaches, and has published guides and content on this topic for the entrepreneurial community.
- Her work at CADChain directly addresses the need for robust IP protection in the engineering and design industries, integrating cybersecurity and compliance measures to safeguard digital assets.
Blockchain:
- Violetta’s entry into the blockchain sector began with the founding of CADChain, which uses blockchain as a core technology for securing and managing CAD data.
- She holds several certifications in blockchain and has participated in major hackathons and policy forums, such as the OECD Global Blockchain Policy Forum.
- Her expertise extends to applying blockchain for IP management, ensuring data integrity, traceability, and secure sharing in the CAD industry.
Violetta is a true multiple specialist who has built expertise in Linguistics, Education, Business Management, Blockchain, Entrepreneurship, Intellectual Property, Game Design, AI, SEO, Digital Marketing, cyber security and zero code automations. Her extensive educational journey includes a Master of Arts in Linguistics and Education, an Advanced Master in Linguistics from Belgium (2006-2007), an MBA from Blekinge Institute of Technology in Sweden (2006-2008), and an Erasmus Mundus joint program European Master of Higher Education from universities in Norway, Finland, and Portugal (2009).
She is the founder of Fe/male Switch, a startup game that encourages women to enter STEM fields, and also leads CADChain, and multiple other projects like the Directory of 1,000 Startup Cities with a proprietary MeanCEO Index that ranks cities for female entrepreneurs. Violetta created the "gamepreneurship" methodology, which forms the scientific basis of her startup game. She also builds a lot of SEO tools for startups. Her achievements include being named one of the top 100 women in Europe by EU Startups in 2022 and being nominated for Impact Person of the year at the Dutch Blockchain Week. She is an author with Sifted and a speaker at different Universities. Recently she published a book on Startup Idea Validation the right way: from zero to first customers and beyond, launched a Directory of 1,500+ websites for startups to list themselves in order to gain traction and build backlinks and is building MELA AI to help local restaurants in Malta get more visibility online.
For the past several years Violetta has been living between the Netherlands and Malta, while also regularly traveling to different destinations around the globe, usually due to her entrepreneurial activities. This has led her to start writing about different locations and amenities from the POV of an entrepreneur. Here’s her recent article about the best hotels in Italy to work from.
About the Publication
Fe/male Switch is an innovative startup platform designed to empower women entrepreneurs through an immersive, game-like experience. Founded in 2020 during the pandemic "without any funding and without any code," this non-profit initiative has evolved into a comprehensive educational tool for aspiring female entrepreneurs.The platform was co-founded by Violetta Shishkina-Bonenkamp, who serves as CEO and one of the lead authors of the Startup News branch.
Mission and Purpose
Fe/male Switch Foundation was created to address the gender gap in the tech and entrepreneurship space. The platform aims to skill-up future female tech leaders and empower them to create resilient and innovative tech startups through what they call "gamepreneurship". By putting players in a virtual startup village where they must survive and thrive, the startup game allows women to test their entrepreneurial abilities without financial risk.
Key Features
The platform offers a unique blend of news, resources,learning, networking, and practical application within a supportive, female-focused environment:
- Skill Lab: Micro-modules covering essential startup skills
- Virtual Startup Building: Create or join startups and tackle real-world challenges
- AI Co-founder (PlayPal): Guides users through the startup process
- SANDBOX: A testing environment for idea validation before launch
- Wellness Integration: Virtual activities to balance work and self-care
- Marketplace: Buy or sell expert sessions and tutorials
Impact and Growth
Since its inception, Fe/male Switch has shown impressive growth:
- 5,000+ female entrepreneurs in the community
- 100+ startup tools built
- 5,000+ pieces of articles and news written
- 1,000 unique business ideas for women created
Partnerships
Fe/male Switch has formed strategic partnerships to enhance its offerings. In January 2022, it teamed up with global website builder Tilda to provide free access to website building tools and mentorship services for Fe/male Switch participants.
Recognition
Fe/male Switch has received media attention for its innovative approach to closing the gender gap in tech entrepreneurship. The platform has been featured in various publications highlighting its unique "play to learn and earn" model.