EUVC #277: On The Rise of Defence Tech with Nicholas Nelson, GP of MD One Ventures

Today, we have Nicholas Nelson, who recently joined MD One Ventures as Partner.Nicholas is an important and active player in building Europe’s first defence and national security venture capital fund, supporting the growing portfolio of over a dozen defence and dual-use tech companies. Nicholas is an internationally recognised defence investor and thought leader, with over 17 years of experience across the national security and defence tech sectors. His National Security career has spanned roles in the US Government, management consulting, and leading defence and dual-use tech companies.Nicholas was an early investor in defence tech as we know it today, having made his first investment in 2020, and has been advising within the dual-use sector since 2015. He has become a leading advocate for the nascent European national security technology ecosystem- contributing to multiple publications and communities, including the US Army War College, the NATO Review, National Defence Magazine, Munich Security Conference, Defence Disrupted, College of Europe, University of Cambridge, and Kings College London.We invite you to listen to this discussion below for a refreshingly honest talk on the defence tech sector, where we stand vis a vis the US and China, as well as actionable advice on how the ecosystem can change for the better.Go to eu.vc for our core learnings and the full video interview 👀Chapters:00:02:24 - From Aerospace Defense to Government Services00:04:24 - Transitioning from Government to Tech Startups00:06:24 - The Role of Tech in a Changing Geopolitical Landscape00:08:36 - Investing in European Defense Tech for Returns and Impact00:10:36 - The Declining Tech Valuation Delta between Europe and the US00:12:38 - Increase in European Defense Spending and Private Capital Engagement00:14:51 - The Blurring Lines Between Defense Technology and Commercial Use00:16:51 - The False Sense of Long-term Security00:18:55 - Trends in Military Spending00:21:04 - Exclusion Lists for Aerospace Defense Companies00:23:05 - Europe at risk of being left behind in defense innovation00:24:59 - The Role of European Primes in the Defense Economy00:27:02 - Investing in European Defense Tech00:33:14 - Successful Defense-First Tech Companies00:35:30 - The Role of Defense Experience in Investing00:37:34 - The Value of Military and National Service in Tech00:39:41 - Defense Tech in Eastern Europe00:41:40 - European Unity and New Beginnings