Andreas Flodström, co-founder and chairman of Varangians, discussed his transition from developing the Swedish-Ukrainian tech ecosystem Beetroot to focusing on the Ukrainian DefenceTech sector. Varangians operates as an investment fund specifically targeting Ukrainian technologies that have undergone testing in frontline conditions.
The fund has secured over €10 million in capital. Its portfolio currently includes companies such as Norda Dynamics, Himera, and Sine Engineering. These firms specialize in developing autonomous UAV systems, secure communication protocols, and various technologies designed for operation in contested environments.
During the discussion, Flodström addressed the broader European DefenceTech landscape. In 2026, disclosed funding for European DefenceTech and dual-use startups reached approximately €667 million. Additionally, nearly €3 billion in investment capacity has been announced across various new funds and financial vehicles.
The conversation also covered the ethical responsibilities of investing in the defence sector and the lessons Europe can derive from Ukraine's rapid advancements in drone technology, electronic warfare, and secure communications. Flodström evaluated whether current capital flows are sufficient to meet the sector's needs.
