SWEDEN STEPS UP: VARANGIANS FUND JOINS $100M WAVE OF INVESTMENT IN UKRAINE’S DEFENSE TECH
Ukraine’s defense technology sector received a major boost this week as Western companies pledged over $100 million in new investments at the Defense Tech Valley 2025 forum in Lviv. Among the headline announcements, Sweden’s Varangians Fund unveiled a significant new investment strategy — positioning Sweden as a key player in shaping the future of Ukraine’s defense industry.
The Varangians Fund, backed by Swedish investors, revealed a major investment plan at the forum, having already closed its first deal in Ukraine’s defense sector. While details remain undisclosed, the fund’s entry marks one of the most notable Scandinavian commitments to Ukraine’s security technology ecosystem to date.
Sweden’s involvement underscores the country’s role not just as a political supporter of Ukraine but as a strategic investor in cutting-edge technologies — from drones and autonomous systems to NATO-oriented innovations. By committing capital, Varangians is helping accelerate Ukraine’s integration into Europe’s broader defense industry.
Other key pledges
NUNC Capital (Netherlands) – €20 million ($23.5M) for Ukrainian defense startups, focusing on advanced materials, electronic warfare, and smart manufacturing.
Verne Capital (Germany-Luxembourg) – up to €25 million ($29.3M) in defense and cybersecurity technologies.
Broadband Capital Investments (U.S.) – $15 million in Swarmer, a Ukrainian pioneer in drone swarm technology.
Oedipus Inc. – launched as Europe’s first permanent-capital defense fund, with a special focus on Ukrainian autonomous systems.
Ukraine’s Digital Transformation Minister, Mykhailo Fedorov, highlighted how battlefield experience is turning Ukraine into a laboratory for new doctrines of war:
“If you are not in Ukraine, you are not in the defense tech market.”
Since 2024, Ukrainian defense firms have raised $90 million through the Brave1 cluster. The latest pledges mark a sharp acceleration, with Sweden now part of the core group of investors shaping the next phase of Ukraine’s defense industry.
Europe’s security stakes
EU Commissioner for Defense and Space Andrius Kubilius stressed that Ukraine’s innovations are vital not only for its survival but for Europe’s security. Citing recent Russian drone incursions into Polish airspace, he called for Ukraine’s defense tech to be fully integrated into the European ecosystem.
More than 300 investors from Europe and North America attended the event, double the number from the previous Brave1 forum earlier this year — a sign of Ukraine’s rapid rise as a global defense tech hub.
Read more at Kyiv Independent.