Dual-Use Founder’s Handbook
From Foundation to Scale
Your comprehensive guide to building a critical industry in Europe
Vol. 2 • Edition 2025
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Inside
the 2025
Edition
Europe’s Dual-Use Market
Governments are shifting from talk to action: NATO Europe spent €350B in 2024 (+19% YoY), with a long-term aim of ~5% of GDP on defence - putting annual budgets on track to €1T by 2030 and ~€2T by 2035.
What 293 Exits Tell Us About Winners
A quantitative review of 293 European dual-use exits since 2014: €29.6B disclosed value across 88 deals, sharp post-2022 activity (+67%), and a buyer mix shift with defence primes tripling share (6.5% → 21%).
Record Funding Momentum
Since 2016, European dual-use & defence tech raised $14.76B; 2025 YTD already hit $3.881B—a new annual record—built on growing public/private infrastructure.
From Startup to Exit: Preligens → Safran.ai
A defence-first AI path with real numbers: TAIIA (2020), TORNADE (2022, €240m, 7-year framework), and acquisition by Safran in 2024 for €220m—plus lessons on dual business units and procurement.
DIANA: Transatlantic Adoption Engine
How NATO DIANA accelerates dual-use adoption: €100k contractual funding per winner, up to €300k additional for testing/validation, access to test centres, and a Rapid Adoption Service that navigates procurement across 32 nations.
Battlefield-Proven Scaling (APS Case)
Advanced Protection Systems scaled from radars to full C-UAS systems: Shahed detection at 19 km under combat, urgent-need adoption by the Polish Armed Forces, and deliveries completed by late 2023—with takeaways on dual civil/defence revenue mix.
Handbook by the numbers
134
pages of content
20+
public instruments founders can use
37
contributors from 10 countries
293
exits analysed
Table of Contents
Executive summary
Dual-use Markets: Understanding the Market Opportunity
M&A in the Dual-use Ecosystem
Scaling foundations
Mastering institutional relationship
Frontier technologies
Exit strategies
Conclusions
"Dual-use deep tech is more than a funding category; it is a framework for resilience."
David Ordonez
Senior Associate, NATO Innovation Fund.
"DIANA’s programme is the only programme that serves as a blueprint for emerging and disruptive technology innovators to navigate the defence and security sector across NATO nations, while actively supporting the civilian commercial success of programme participants."
Jyoti Hirani-Driver
COO, NATO DIANA.
"Trust is the most important thing. You build it slowly by being reliable and consistent, but you can lose it with just one mistake."
Rafał Modrzewski
CEO & Co-founder, ICEYE.
"Nearly 40% of European Defence Fund beneficiaries are SMEs."
Guillaume de la Brosse
Head of Unit for Defence Policy & Innovation,
European Commission (DG DEFIS).
THIS HANDBOOK IS DESIGNED FOR STAKEHOLDERS ACROSS THE DUAL-USE INNOVATION ECOSYSTEM
Who should read this report?
Founders & Startup Teams: Deep-tech entrepreneurs building solutions for both commercial markets and government customers.
Government Institutions: Public sector innovation units and defense agencies looking to leverage cutting-edge startups and new technologies.
VCs & Investors: Venture capital firms, corporate investors, and angels interested in high-growth opportunities in defense and security tech.
Defense Primes: Established defense contractors seeking to partner with or acquire agile dual-use ventures.
Accelerators & Incubators: Programs supporting dual-use startups (e.g. incubators, accelerators) that need up-to-date insights for their cohorts.stomers.
Civil Resilience Agencies: Organizations focused on civilian security and disaster resilience, interested in emerging technologies with dual-use applications.
AUTHORS AND CONTRIBUTORS
Meet our dual-use experts
Marcin P.
Kowalik
General Partner
Balnord
Wojciech
Drewczyński
Operating Partner
Balnord
Jack
Wang
Partner
Project A
David
Ordonez
Senior Associate
NATO Innovation Fund
Nabil
Ben Mahdi
Sr Business Development Manager
European Investment Fund
Jyoti
Hirani-Driver
Chief Operating Officer
NATO DIANA
Benjamin
Wolba
Co-founder of the
European Defense Tech Hub
Radoslaw
Piesiewicz PhD
Co-Founder & Chief Operating Officer
Advanced Protection Systems
Sebastian
Klaus
CEO & Founder
Atmos Space Cargo
Maciej
Łaska
Managing Director
Palantir Technologies Poland
Rafał
Modrzewski
CEO & co-founder
ICEYE
Aleksander
Dobrzyniecki
General Partner
Balnord
Konrad
Koncerewicz
Chief Operating Officer
Vestbee
Paweł
Huras
Polish Development
Funf PFR
Weronika
Mystek
Polish Development
Funf PFR
Guillaume
de la Brosse
Head of Unit of Defence Policy & Innovation
European Commission
Aleksander
Mokrzycki
Vice-president of the Board
PFR Ventures
Miiko
Peris
Director of Defence
Ministry of Defence
Republic of Estonia
Mart
Noorma
Co-founder
Darkstar
Jarosław
Dąbrowski
Senior Business Development Advisor
Bank Gospodarstwa Krajowego (BGK)
Artem
Moroz
Head of Investor Relations
Brave1
Art
Threvetan
Founder
Accelerator Reach Transition
Izabela
Albrycht
Director of the Cybersecurity Centre
AGH University
Krzysztof
Mazur PhD
President
Council of Polish Global Entrepreneurs
Bartosz
Józefowski
Head of
FORT Kraków Accelerator
Tomasz
Korzeniowski
Quantum Quest
Szymon
Struszyński
Fort Kraków
Diana Accelerator Poland
Rafał
Lipka
Research Fellow
Pulaski Institute
Jakub
Wernik
Research Fellow
Pulaski Institute
David
Dana
General Partner
Expansion Ventures
Filip
Kocian
Investor,
Expansion Ventures
Marc C
Lange
Strategic Advisor
2 Ventures
Gen. Karol
Moleda
Commander of
POL Cyber Command (DKWOC)
Sri
Ayangar
VC Investor
Lakestar
Andrzej
Rościszewski
Investment Associate
Expeditions Fund
Mirosław
Kamiński
President of the Management Board
Pomeranian Special Economic Zone (PSSE)
Lt. Gen. Tomasz
Piotrowski
former Operational Commander
Polish Armed Forces
(2018-2023)
Contributors
Media Partners
About Balnord
We are a high conviction first check investor backing founders from Poland & the Baltics.
Balnord SARL, Luxembourg, 2562,
Place de Strasbourg 2