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Private funding for EDA projects

Funding is often the hard part for international cooperation in defence related R&D and capability development. The Captech platforms of the European Defence Agency (EDA) provide great opportunities to share knowledge and pool multinational government funds, but it is often hard obtain sufficient money for a project and even harder to fit available funds in the timeline of the project. Main reason is the principle that tax payes money of one nation cannot be spent in industries in other nations.

A study by WISER Consultancy has shown that private funding (banks or other investors) often could solve a lack of funding for both category A and category B projects. Private funds could also introduce cash flow 
flexibility when international government funds are available, but schedules do not match. A third opportunity of private funds is to engage companies in nations that cannot participate in the project financing, but are of importance from a technical or economical point of view. 
Private funding solutions are possible for projects with SMEs and OEMs alike, but less applicable for government owned industries or laboratories. 

In recent years WISER performed a number of ‘quick scans’ for this kind of projects. During these quick scans we review R&D and procurement projects from a financial and business perspective and indicate opportunities for private funding. Often a slight shift of focus or a different consortium structure could make a project potentially interesting for private investors. We indicate if and how a project could be (made) attractive for banks, private equity, crowd funding or other types of investment and what type of government guarantees would be available. Goal is to enable important projects for European and NATO defence to go forward and not be hampered by complex funding issues in participating member states (pMS). 

Dependent on the type of project and the number of companies involved a few thousand euros is enough to indicate solutions from a private funding perspective. For each quick scan we use the combined knowledge and experience of our team consisting of experts in legal, financial, investment, technical, security and strategic issues. More in particular we have a vast experience with issues related to EDA Captech cat. B and similar projects and a broad network in Ministeries of Defence (MoDs), the financial sector and the defence industry.

For more information about quick scans for private funding contact our CEO Jan Wind at
RNLAF and Delft university of technology