Varangians DefenceTech Fund Closes Over $11M

Jan de Vries · 2026-06-12

Stockholm-based Varangians, a new DefenceTech-focused investment fund co-founded by Beetroot founder Andreas Flodström, has closed at over $11 million (100 million kronor) to back Ukraine's DefenceTech ecosystem. ### What Varangians Has Already Invested In The fund has already completed investments in Ukrainian DefenceTech 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." ### How This Fits the Bigger Picture Varangians' close might be smaller than other large 2025 vehicles that recently closed, but it fits a wider shift in European capital allocation towards defence, dual-use, resilience and deeptech investment platforms. DTCP's $545 million Project Liberty and Kembara's $817 million first close point to larger pools of growth-oriented capital, while Seraphim Space, 360 Capital and the EU-Ukraine defence innovation programme show investor and institutional focus on technologies linked to sovereignty, space, autonomy, cybersecurity, industrial capacity and Ukraine-related defence 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. ### The Fund's Mission and Strategy Founded in 2025, Varangians will invest primarily in Ukrainian DefenceTech startups, while also considering non-Ukrainian companies working across military and civil defence. 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, defence, entrepreneurship and Ukraine. Its 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. ### Current Portfolio Companies Their current portfolio: - 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. ### What Sets Varangians Apart Varangians' 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 assesses them through a combination of technical insight, operational relevance and governance standards. It also offers consulting services for organisations looking to establish operations in Ukraine, including support with local partners, security and risk planning, field testing, field engineering and frontline-driven R&D. ### The Meaning 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 intended 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.