Varangians Closes $11M for Ukraine DefenceTech

Jan de Vries · 2026-06-12

A new investment fund is putting serious money behind Ukraine's defence technology scene. Stockholm-based Varangians, co-founded by Beetroot founder Andreas Flodström, just closed at over $11 million (100 million kronor). The fund's mission is clear: back Ukrainian DefenceTech companies that are building and testing real systems in frontline conditions. ### What Varangians Is All About Varangians isn't your typical venture capital fund. It's built around a simple but powerful idea: Ukrainian engineers are innovating under fire, producing low-cost, effective tech that Europe urgently needs. The 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." The fund has already invested in three Ukrainian DefenceTech companies: - Norda Dynamics: developing an autonomous UAV piloting system for mission execution in communication-deprived environments - Himera: building user-friendly, EW-resistant secure communications systems for civil and emergency use - Sine Engineering: working on a next-generation UAV communication and positioning platform for contested environments involving jamming, interference, and spoofing A fourth portfolio company remains confidential, but according to Varangians' website, it's a manufacturer of UAVs, UGVs, and components for unmanned systems, plus it offers drone pilot training and an R&D lab. ### How Varangians Fits Into the Bigger Picture Varangians' close might be smaller than other large 2026 vehicles that recently closed. But it fits a wider shift in European capital allocation. We're seeing more money flowing into defence, dual-use, resilience, and deeptech investment platforms. For example, DTCP's $545 million Project Liberty and Kembara's $817 million first close point to larger pools of growth-oriented capital. Meanwhile, Seraphim Space, 360 Capital, and the EU–Ukraine defence innovation programme show that investors and institutions are focused on technologies tied to sovereignty, space, autonomy, cybersecurity, industrial capacity, and Ukraine-related defence needs. Within that landscape, Varangians stands out not because of its fund size, but because of its Ukraine-first mandate. It's all about companies building and testing systems in real frontline conditions. ### The Team and Mission Behind Varangians Founded in 2025, Varangians will invest primarily in Ukrainian DefenceTech startups, but it's also open to non-Ukrainian companies working across military and civil defence. The fund focuses on high-impact technologies being developed and tested in real frontline conditions, with particular attention on unmanned systems, electronic warfare, strategic communications, demining, secure communications, and selected dual-use technologies. Varangians was founded by a leading Swedish family office alongside entrepreneurs Pär Lager, Andreas Flodström, and Jonas Rydin. They bring together experience in technology, defence, entrepreneurship, and Ukraine. The fund's stated mission is to strengthen Ukraine through DefenceTech investments, while supporting the re-arming of Sweden, the Nordics, and wider Europe through Ukrainian innovation, experience, and systems. ### How Varangians Works The fund's model combines targeted scouting, context-aware evaluation, and active support after investment. The team says it identifies promising companies through Ukrainian defence innovation ecosystems and trusted networks. Then it assesses them through a mix of technical insight, operational relevance, and governance standards. Varangians also offers consulting services for organisations looking to establish operations in Ukraine. That includes support with local partners, security and risk planning, field testing, field engineering, and frontline-driven R&D. ### The Story Behind the Name The name Varangians refers to the Swedish Vikings who traveled to Ukraine and Kyiv around the year 800 and played a role in the early history of the region alongside Ukrainians. For the fund, the name is meant to reflect 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 by Flodström and Gustav Henman. So this fund connects back to his roots in the region. ### What This Means for the DefenceTech Landscape Varangians is a clear signal that investors are betting on Ukraine's ability to produce cutting-edge defence technology under extreme conditions. The fund's focus on frontline-tested solutions could give it a unique edge in identifying what actually works in combat. For European defence needs, this could be a game-changer.