Swedish Fund Varangians Closes €9.1 Million to Support Ukrainian Defence Tech
Varangians, a new DefenceTech investment fund based in Stockholm and co-founded by Beetroot co-founder Andreas Flodström, has closed over €9.1 million to back Ukraine's DefenceTech ecosystem.
Stockholm-based Varangians, a DefenceTech-focused investment fund co-founded by Beetroot co-founder Andreas Flodström, has closed at over €9.1 million (100 million Swedish kronor). The fund has already made investments in Ukrainian DefenceTech companies including Norda Dynamics, Himera, and Sine Engineering, with a fourth portfolio company remaining confidential.
Norda Dynamics is developing an autonomous UAV piloting system for mission execution in communication-deprived environments. Himera builds user-friendly, EW-resistant secure communications systems for civil and emergency use. Sine Engineering is working on a next-generation UAV communication and positioning platform for contested environments involving jamming, interference, and spoofing. The confidential fourth company manufactures UAVs, UGVs, and components for unmanned systems, as well as providing drone pilot training and an R&D lab.
Varangians will invest primarily in Ukrainian DefenceTech startups, but also considers non-Ukrainian companies working across military and civil defence. The fund focuses on high-impact technologies being developed and tested in real frontline conditions, including unmanned systems, electronic warfare, strategic communications, demining, secure communications, and dual-use technologies.
Founded by a leading Swedish family office alongside entrepreneurs Pär Lager, Andreas Flodström, and Jonas Rydin, the fund brings together experience in technology, defence, entrepreneurship, and Ukraine. Its mission is to strengthen Ukraine through DefenceTech investments while supporting the re-arming of Sweden, the Nordics, and wider Europe through Ukrainian innovation.
The name Varangians refers to the Swedish Vikings who traveled to Ukraine and Kyiv around 800 AD, symbolizing a renewed link between Sweden and Ukraine through technology, resilience, and defence innovation. Flodström is best known as co-founder of Beetroot, a Swedish-Ukrainian tech ecosystem established in 2012 that now employs over 400 people across Sweden, Ukraine, Bulgaria, Poland, Romania, Moldova, and Vietnam.
Varangians' model combines targeted scouting, context-aware evaluation, and active post-investment support. The team identifies promising companies through Ukrainian defence innovation ecosystems and trusted networks, assessing them through technical insight, operational relevance, and governance standards. The fund also offers consulting services for organizations looking to establish operations in Ukraine, including support with local partners, security and risk planning, field testing, and frontline-driven R&D.
As venture capital interest in DefenceTech rises across Europe, Ukraine is increasingly seen as a key source of battle-tested innovation. Varangians positions itself around technologies that can support Ukraine now while strengthening European security in the long term.
