Crédit Agricole 29 Launches “Defense Vertical” and Finistère Expansion Fund
Based in Brest, France, Le Village by CA Finistère has launched a new “Defense” initiative aimed at supporting and accelerating innovation within the defense sector. This expansion comes as demand for defense technologies has increased following the 2022 Russian invasion of Ukraine (Reuters). The “Defense Vertical” joins existing focuses on agriculture, maritime industries, and the energy transition.
Supporting Defense Startups in Finistère
Currently, six Finistère-based startups – Arkane, nusense, Mappem geophysics, SEA AI, 52Hertz, and ALLvei – specializing in areas like radar technology and wireless communication, are receiving support from Crédit Agricole 29.The initiative focuses on connecting these startups with larger companies, such as Naval Group and Thales, to address critical needs like drone defense. The goal is to help these startups mature to the point where they can directly engage with these major defense contractors while protecting them from being acquired prematurely.
Finistère Expansion Fund: €50 Million for Growth
To further bolster the growth of these and other developing companies in the region, Crédit Agricole 29 has established the “Finistère expansion” investment fund. Benoît Lucas, the bank’s Director General, stated that approximately 10% of the bank’s annual results – around €50 million – will be allocated to helping these structures scale their operations (Le Télégramme).
Addressing Ethical Considerations in Defense Financing
Philippe Brassac,former CEO of Crédit Agricole SA,addressed the past exclusion of the defense sector from responsible finance,stating that legally permissible activities should be considered for funding. Hervé Guillou, former CEO of Naval Group and current President of Exail, emphasized the importance of ensuring that benefits from large defense contracts extend to smaller subcontractors, noting that a important portion of public procurement – 89% – is channeled through just five major groups.
Key Takeaways
- New Defense Focus: Le Village by CA Finistère is prioritizing support for defense-related startups.
- Investment Fund: The Finistère expansion fund will provide €50 million annually to help companies scale.
- Strategic Partnerships: The initiative aims to connect startups with major defense contractors like Naval Group and Thales.
- Ethical Finance: Crédit Agricole 29 is re-evaluating its approach to financing the defense sector.