Varangians Closes $10M Fund for Ukraine DefenceTech

Jan de Vries · 2026-06-12

A new investment fund is betting big on Ukraine's battlefield tech. Stockholm-based Varangians, a DefenceTech-focused fund co-founded by Beetroot founder Andreas Flodström, just closed at over $10 million (100 million kronor). The fund's sole mission: back Ukraine's DefenceTech ecosystem. The fund has already made moves. It invested in Ukrainian companies like Norda Dynamics, Himera, and Sine Engineering. A fourth portfolio company stays under wraps for now. “We founded Varangians because we have seen how Ukrainian engineers innovate under fire; producing low-cost, effective tech that Europe urgently needs,” said co-founders Pär Lager, Andreas Flodström, and Jonas Rydin. ### Why This Fund Matters Now Varangians’ close might seem small next to the big funds of 2026. But it fits a bigger shift. European money is flowing into defence, dual-use tech, resilience, and deep tech like never before. Consider these examples: - DTCP’s $545 million Project Liberty - Kembara’s $820 million first close - Seraphim Space, 360 Capital, and the EU-Ukraine defence innovation programme All point to a surge in capital for sovereignty, space, autonomy, cybersecurity, and industrial capacity. Varangians stands out not by size but by focus. It’s Ukraine-first and bets on companies testing tech in real frontline conditions. ### What Varangians Invests In Founded in 2025, Varangians puts money primarily into Ukrainian DefenceTech startups. It also considers non-Ukrainian companies working on military and civil defence. The fund looks for high-impact technologies developed and tested under fire. Key areas include: - Unmanned systems (drones and ground vehicles) - Electronic warfare - Strategic communications - Demining tech - Secure communications - Selected dual-use technologies The fund’s current portfolio shows this focus: - **Norda Dynamics**: Building an autonomous UAV piloting system for comms-deprived zones - **Himera**: Creating user-friendly, EW-resistant secure comms for civil and emergency use - **Sine Engineering**: Developing a next-gen UAV comms and positioning platform for jammed environments - **Fourth company (confidential)**: A manufacturer of UAVs, UGVs, and components, plus drone pilot training and an R&D lab ### How Varangians Works Varangians isn’t just writing checks. It uses a hands-on model. The team scouts promising companies through Ukrainian defence innovation networks. Then they assess each startup through technical insight, operational relevance, and governance standards. After investment, they offer active support. This includes consulting for organizations looking to set up in Ukraine. Services cover local partnerships, security planning, field testing, field engineering, and frontline R&D. ### The Story Behind the Name The name Varangians comes from the Swedish Vikings who traveled to Ukraine and Kyiv around 800 AD. They played a role in the region’s early history alongside Ukrainians. For the fund, it symbolizes a renewed link between Sweden and Ukraine through tech, resilience, and defence innovation. Flodström, best known as Beetroot co-founder, launched that Swedish-Ukrainian tech ecosystem in Stockholm back in 2012 with Gustav Henman. Now, he’s applying that same cross-border energy to DefenceTech. Varangians’ mission is clear: strengthen Ukraine through DefenceTech investments while supporting the re-arming of Sweden, the Nordics, and wider Europe using Ukrainian innovation and battlefield experience.