Rubicon Partners, a fund known for building deeptech and IT companies, is entering the defence market – it has become a shareholder in Polish Innovation Labs (PIL), a manufacturer and distributor of small-calibre ammunition. Remigiusz Talarek’s Elephant Rock Family Foundation and a group of business angels also participated in the PLN 10 million investment round. Although the amount is not impressive compared to global deals in defence tech, in Poland it is a signal of the growing appetite of private capital for the military sector.
Polish Innovation Labs operates at the interface between the public and civilian markets. It supplies ammunition to, among others, the KAS, the Border Guard or the Prison Service, but also to commercial shooting ranges and specialist shops. The business model today is based on the import of components – mainly from Europe, Western Asia and the USA – with maritime logistics dominating, which means a 1-2 month wait and the need for upfront financing. The investment is expected to allow the company to make a key return: launching its own production of some components in Poland.
This is not only a move towards greater independence from global supply chains, but also an attempt to fit into the wider trend of defence reindustrialisation. Since the start of the war in Ukraine, the European defence sector has seen a record pace of orders and governments are encouraging the localisation of production. PIL also promises to diversify – manufacturing facilities may be partly diverted to civilian industries, which fits in with the dual-use model valued by institutional investors.
Rubicon Partners, which has so far focused mainly on deeptech, chemicals and energy transformation, is bringing not only capital but also operational know-how to the company. The fund pledges support in the process of reaching a potential IPO on the WSE in 2026, suggesting that PIL is thinking about consolidating its market position and scaling its operations beyond the domestic market.
Rubicon Partners’ entry into the defence sector can be read as a signal of the maturing of the Polish venture market: so far bypassed by VCs due to regulations, political risk and a long sales cycle. However, today’s environment – increasing security spending, pressure for local production and the need for innovation – is creating space for new players.
The coming months will show whether PIL manages to realistically reduce its dependence on imports. If so, it could become one of the first Polish defence tech entities ready to go public – and not just a supplier of niche components.
