Eric Thlesinger stands out a bit as VCs are known to travel in packs. While most American investors are chasing AI startups or US-based defense technology startups, former CIA executives are looking for defence technology deals in Europe. In fact, Slesinger, founder of the 201 venture, recently shut down a $22 million fund focusing on seed stage European defence technology startups. His path from developing gadgets and software for CIA agents to becoming perhaps the only American VC to invest exclusively in European defence technology, also appears to be foresightful.
What would force the CIA to leave “the best first job of all time” in order to pursue this particular ambition? As Slesinger told TechCrunch in a recent StrictlyVC Download Podcast interview, the answer comes from identifying important changes that many people have missed. “I left because I realized that the private sector was playing an increasing role in this competition, where I really knew I was a government for government competition before,” explained Slesinger. “What became clear every day is that the private sector plays a huge role here.”
With a Stanford University degree from Mechanical Engineering and Harvard Business School, Slesinger’s background helped him prepare him to bridge the gap between defence technology and commercial ventures. But what made him interesting for investors, founders and technical reporters too was his willingness to violate traditional wisdom.
“I’ve always enjoyed going to places where other people tend not to want to go,” Slesinger said. “That’s why I really enjoyed working at the CIA. Some of the things people there were saying were, “Go where other people don’t go and don’t do what they can’t.” ”
There were three things about what the US VC lacked from Slesinger’s perspective. First, “Europe has individual entrepreneurs who are equally hungry, equally convicted, and as clever as elsewhere in the world.” Second, “European governments waited too long to reconsider what their security arrangements meant and did not actually look critical of it.” And third, “Europe is seen quickly, and in my opinion, remains a place of serious grey zone competition,” meaning activities by state or non-state actors falling between traditional peace and complete war.
Perhaps the most surprising aspect of Slesinger’s European venture is the cultural resistance he says he encountered in regards to defence investments. In 2022, after moving from the US to Madrid, he launched a European network of defense investors, including entrepreneurs, investors and policymakers. In a mid-sized post in 2023, Slesinger wrote about how his European VC colleagues were afraid to talk about their defense-related investments. Unlike America, he told TechCrunch that defence technology investments in Europe were “deemed inadequate.” (Slesinger quickly added, “I’m exaggerating a bit, but there’s a core of truth there.”)
He says that the cultural he brought about “many founders thought about it and decided not to build a company in the (defense) space.” Now it’s changing. NATO Innovation Fund – Supported by 24 NATO allies, the NATO Innovation Fund launched in the summer of 2022 after the outbreak of the Russian-Ukurein war. Certainly, it is a key supporter of the 201 venture.
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It is also attracting attention with promising defence technology startups on the continent. This includes Munich-based Helsing, which is developing AI for battlefield use, and is currently valued at over $5 billion by investors. Another up-and-coming in Slesinger’s portfolio is Delian Alliance Industries, an Athens-based outfit that develops surveillance towers for autonomous threat detection. Delian has raised seed funding so far, but is a hot ticket that has been actively courted by VCS.
With eight investments so far, the 201 ventures are focused on technology that addresses grey zone competition, as they are, in Slesinger’s terms, “occurring on a large scale in Europe and occurring over the next few decades.” These market dislocations are actually a good form of alpha, whether they are price inefficiencies, whether the government doesn’t want sovereign power or whether they otherwise play a greater role in the market.”
In addition to Delian, another bet for Slesinger is Polar Mist. It is a Swedish startup that produces marine drones with advanced navigation capabilities. Other areas of focus include hyponasonics and underground mapping.
One of the challenges in funding defensive high-tech startups is the development timeline compared to traditional venture investments. Slesinger admitted the tension in a chat with TechCrunch. “If there’s a 10-year venture fund lifecycle, that’s the real thing we have to do to try and accelerate or bend a little.”
Slesinger also believes that “European companies should lobby more in the much earlier stages.”
Both raise questions about whether his gambling will pay off for investors. At the same time, as geopolitical tensions rise and Europe rethinks security arrangements, his early vision for a more autonomous European defence ecosystem is becoming apparent to many other investors.
Data released earlier this year by the NATO Innovation Fund and Research Group Dealroom showed that European startups raised 24% more capital than 2023 and 2024, earning $5.2 billion, and even equalizing AI funds. That figure could rise even further as President Donald Trump took office in January and raises doubts about the US commitment to European defense.