Investment Due Diligence in Defense and Deep Tech – What Fund Managers Should Look For

Investments in companies and startups in the defense industry, as well as in so-called “deep tech” sectors, are experiencing a significant increase in demand in light of geopolitical developments. Venture capital and private equity funds active in these areas are thus faced with the question of whether—and, if so, what—special obligations arise in these sensitive sectors to safeguard the state’s security interests under foreign direct investment review (FDI) laws.