Ukraine DefenceTech Fund Varangians Closes $11.4M

Jan de Vries · 2026-06-12

### A New Fund for Frontline Innovation Stockholm-based Varangians, a new DefenceTech investment fund co-founded by Beetroot founder Andreas Flodström, has closed at over $11.4 million (100 million kronor). The fund is dedicated to backing Ukraine's DefenceTech ecosystem. It's already made investments in Ukrainian companies like Norda Dynamics, Himera, and Sine Engineering, with a fourth portfolio company staying confidential for now. ### Why This Matters Now Varangians' close might be smaller than some big 2026 vehicles that recently closed, but it fits a wider shift in how European capital is flowing. Investors are putting more money into defence, dual-use technologies, resilience, and deep tech platforms. For context, DTCP's $542 million Project Liberty and Kembara's $813 million first close show there's plenty of growth capital out there. Meanwhile, programs like Seraphim Space, 360 Capital, and the EU-Ukraine defence innovation program highlight a growing focus on sovereignty, space, autonomy, cybersecurity, and industrial capacity. ### What Sets Varangians Apart Varangians differentiates itself not by fund size but by its Ukraine-first mission. The team focuses on companies that build and test systems in real frontline conditions. That's a huge advantage. You can't simulate combat stress in a lab. Co-founders Pär Lager, Andreas Flodström, and Jonas Rydin put it this way: "We founded Varangians because we have seen how Ukrainian engineers innovate under fire; producing low-cost, effective tech that Europe urgently needs." ### Portfolio Companies at a Glance - **Norda Dynamics** - Developing an autonomous UAV piloting system for missions in communication-deprived environments. - **Himera** - Building user-friendly, EW-resistant secure communications for civil and emergency use. - **Sine Engineering** - Working on a next-gen UAV communication and positioning platform for contested environments with jamming and spoofing. - **Confidential Company** - A manufacturer of UAVs, UGVs, and components, plus drone pilot training and an R&D lab. ### Investment Approach and Consulting Varangians combines targeted scouting, context-aware evaluation, and active post-investment support. The team finds promising startups through Ukrainian defence innovation ecosystems and trusted networks. They assess each company using technical insight, operational relevance, and governance standards. Beyond investing, Varangians offers consulting services for organizations looking to establish operations in Ukraine. That includes help with local partners, security and risk planning, field testing, field engineering, and frontline-driven R&D. ### The Story Behind the Name "Varangians" refers to the Swedish Vikings who traveled to Ukraine and Kyiv around the year 800. They played a role in the region's early history alongside Ukrainians. For this fund, the name reflects a renewed link between Sweden and Ukraine through technology, resilience, and defence innovation. Flodström is best known as the co-founder of Beetroot, the Swedish-Ukrainian tech ecosystem founded in Stockholm in 2012. His experience building cross-border tech communities gives him deep insight into both markets. ### What This Means for Defence Tech Varangians represents a growing trend: investors who see Ukraine not just as a conflict zone but as a real-world testing ground for next-generation defence technology. The fund's focus on unmanned systems, electronic warfare, strategic communications, demining, and secure communications aligns with the most urgent needs on today's battlefields. As European nations rethink their defence spending, funds like Varangians could play a key role in bringing battlefield-tested solutions to market quickly. That's good for Ukraine, good for Sweden and the Nordics, and good for European security overall.