Blended capital: a new investment model for defence innovation

Blended Capital: A New Investment Model for Defence Innovation

A newly emerging financial architecture, combining state-backed funds with other sources of capital, could address the shortfall in defence spending.

Traditional venture capital models are not effective for defence, despite a shift in investor perception from "taboo" to necessity after the invasion of Ukraine.

However, challenges remain, including long timelines, a small customer base, and high risks.

Traditional venture capital models don’t work for defence.

Author's summary: Blended capital addresses defence spending shortfalls.

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PWM PWM — 2025-10-16

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