Swedish DefenceTech fund Varangians closes €9.1 million to back Ukrainian startups
Stockholm-based Varangians, a new DefenceTech investment fund, has closed over €9.1 million to support Ukraine's DefenceTech ecosystem, with investments already made in three companies.
Varangians, a Stockholm-based investment fund focused on DefenceTech, has closed at over €9.1 million (100 million Swedish kronor). Co-founded by Andreas Flodström, known for creating the Beetroot tech ecosystem, the fund aims to back Ukraine's DefenceTech startups. It has already invested in Norda Dynamics, Himera, and Sine Engineering, with a fourth portfolio company remaining confidential.
Co-founders Pär Lager, Andreas Flodström, and Jonas Rydin stated they founded Varangians after witnessing how Ukrainian engineers innovate under fire, producing low-cost, effective technology Europe urgently needs. Established in 2025, the fund will primarily invest in Ukrainian DefenceTech startups but also consider non-Ukrainian companies working on military and civil defence technologies.
The fund focuses on high-impact technologies developed and tested in real frontline conditions, including unmanned systems, electronic warfare, strategic communications, demining, secure communications, and selected dual-use technologies. Varangians' mission is to strengthen Ukraine through DefenceTech investments while supporting the re-armament of Sweden, the Nordics, and wider Europe via Ukrainian innovation and experience.
Portfolio company Norda Dynamics develops an autonomous UAV piloting system for missions in communication-deprived environments. Himera builds user-friendly, EW-resistant secure communications for civil and emergency use. Sine Engineering works on a next-generation UAV communication and positioning platform for contested environments involving jamming and spoofing. The confidential fourth company manufactures UAVs, UGVs, and components, and offers drone pilot training and R&D lab services.
The name Varangians refers to Swedish Vikings who traveled to Ukraine and Kyiv around 800 AD, symbolizing a renewed link between Sweden and Ukraine through technology and defence innovation. The fund was founded by a leading Swedish family office alongside the entrepreneurs.
