DT and Porsche Partner on New €500 Million VC Defense Fund

Deutsche Telekom and Porsche plan a partnership to head up a new venture capital fund. It would target European defense companies and is an attempt to cash in on an increase in military spending on the continent.

The new fund will be run by German investment company DTCP, which was owned by DT a decade ago, before being spun off. Porsche, the holding company that controls carmakers Porsche and Volkswagen, already has a partnership with DTCP and together set up another VC fund focused on connected mobility, in which Deutsche Telekom is an investor.

The size and make-up of the new fund remains unconfirmed according to sources, but there is a desire from both companies to tap into an increase in defence investment in Europe. This has been sparked by Russia’s war with Ukraine and questions about the US’ commitment to NATO.

Investment companies Lakestar and CVC Capital Partners, among others, are raising money and establishing plays to pursue defence deals in Europe. DT’s push comes after fellow European telecoms operator Orange made a big play around defense in June, with its business unit launching a specialised division around the sector.