Varangians Closes $11M to Back Ukraine's DefenseTech

Jan de Vries · 2026-06-12

Stockholm-based Varangians, a new DefenseTech-focused investment fund co-founded by Beetroot founder Andreas Flodström, has closed at over $11 million (100 million kronor) to back Ukraine’s DefenseTech ecosystem. The fund has already completed investments in Ukrainian DefenseTech companies including Norda Dynamics, Himera, and Sine Engineering, while a fourth portfolio company remains confidential. Varangians Co-founders Pär Lager, Andreas Flodström, and Jonas Rydin said: “We founded Varangians because we have seen how Ukrainian engineers innovate under fire; producing low-cost, effective tech that Europe urgently needs.” ### A Smaller Fund with a Big Mission Varangians’ close might be smaller than other large 2026 vehicles that recently closed, but it fits a wider shift in European capital allocation towards defense, dual-use, resilience, and deeptech investment platforms. DTCP’s $540 million Project Liberty and Kembara’s $810 million first close point to larger pools of growth-oriented capital, while Seraphim Space, 360 Capital, and the EU–Ukraine defense innovation program show investor and institutional focus on technologies linked to sovereignty, space, autonomy, cybersecurity, industrial capacity, and Ukraine-related defense needs. Within that landscape, Varangians is differentiated less by fund size than by its Ukraine-first mandate and its focus on companies building and testing systems in frontline conditions. ### What Sets Varangians Apart Founded in 2025, Varangians will invest primarily in Ukrainian DefenseTech startups, while also considering non-Ukrainian companies working across military and civil defense. The fund is focused 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, bringing together experience in technology, defense, entrepreneurship, and Ukraine. Its stated mission is to strengthen Ukraine through DefenseTech investments, while supporting the re-arming of Sweden, the Nordics, and wider Europe through Ukrainian innovation, experience, and systems. ### Current Portfolio Companies - **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. - According to Varangians’ website, their fourth confidential company is described as a manufacturer of UAVs, UGVs, and components for unmanned systems, as well as providing drone pilot training and an R&D lab for innovation and testing. Varangians’ model combines targeted scouting, context-aware evaluation, and active support after investment. The team says it identifies promising companies through Ukrainian defense innovation ecosystems and trusted networks, then assesses them through a combination of technical insight, operational relevance, and governance standards. ### Consulting Services for Defense Innovators It also offers consulting services for organizations looking to establish operations in Ukraine, including support with local partners, security and risk planning, field testing, field engineering, and frontline-driven R&D. This hands-on approach means the fund isn’t just writing checks—it’s helping portfolio companies navigate the complexities of operating in a war zone, which can be a massive barrier for many startups. 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 intended to reflect a renewed link between Sweden and Ukraine through technology, resilience, and defense 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.