Varangians: A New Force in Defense Technology Investment
Based in Stockholm, Varangians is a pioneering DefenseTech-focused investment fund co-founded by Beetroot founder Andreas Flodström. The fund has successfully closed on more than €10 million (100 million crowns) to support the burgeoning Ukrainian DefenseTech ecosystem.
Investing in Innovation Under Fire
The fund has already made strategic investments in several Ukrainian DefenseTech companies, including Norda Dynamics, Himera, and Sine Engineering, with a fourth portfolio company remaining confidential. According to Varangians’ co-founders, Andreas Flodström, By Lager, and Jonas Rydin, “We founded Varangians because we saw how Ukrainian engineers innovate under fire, producing efficient, low-cost technology that Europe urgently needs.”
A Focus on Frontline-Tested Technology
Established in 2025, Varangians primarily targets Ukrainian DefenseTech startups, though it remains open to investing in non-Ukrainian companies operating in the military and civil defense sectors. The fund concentrates on high-impact technologies that have been developed and tested in real-world frontline conditions. Key areas of focus include unmanned systems, electronic warfare, strategic communications, mine clearance, secure communications, and certain dual-use technologies.
Strengthening Europe through Ukrainian Innovation
Founded by a leading Swedish family office and entrepreneurs Pär Lager, Andreas Flodström, and Jonas Rydin, Varangians brings together a wealth of experience in technology, defense, entrepreneurship, and Ukrainian markets. Its mission is clear: to bolster Ukraine through investment in defense technology, while simultaneously supporting the rearmament of Sweden, the Nordic countries, and Europe as a whole.
Current Portfolio
- Norda Dynamics is developing an autonomous UAV piloting system for executing missions in communication-deprived environments.
- Himera builds user-friendly, electronic warfare-resistant secure communications systems for civilian and emergency use.
- Sine Engineering is working on a next-generation UAV communications and positioning platform for contested environments involving jamming, interference, and spoofing.
- According to the Varangians’ website, their fourth confidential company is described as a manufacturer of drones, UGVs, and components for unmanned systems, as well as providing training for drone pilots and an R&D laboratory for innovation and testing.
The Varangian Model
The Varangian model combines targeted research, contextual assessment, and active post-investment support. The team identifies promising companies through Ukraine’s defense innovation ecosystems and trusted networks. Evaluations are conducted using a combination of technical knowledge, operational relevance, and governance standards. Additionally, Varangians offers consulting services to organizations looking to establish themselves in Ukraine, providing support with local partners, security and risk planning, field testing, field engineering, and front-line R&D.
A Historical Connection
The name “Varangians” pays homage to the Swedish Vikings who traveled to Ukraine and Kyiv around AD 800, playing a significant role in the region’s early history. For the fund, the name aims to reflect a renewed connection between Sweden and Ukraine through technology, resilience, and defense innovation.
A Legacy of Innovation
Andreas Flodström is best known as the co-founder of Beetroot, the Swedish-Ukrainian tech ecosystem founded in Stockholm in 2012. Beetroot has grown into an international technology company and social enterprise, employing over 400 people across its headquarters in Sweden and R&D sites in Ukraine, Bulgaria, Poland, Romania, Moldova, and Vietnam.
The Future of DefenseTech
The launch of Varangians comes as venture capital interest in DefenseTech continues to grow across Europe, with Ukraine increasingly seen as a key source of proven innovation. By supporting startups that solve real front-line problems, the fund positions itself around technologies that can support Ukraine today while strengthening European security in the long term.
Source: Here
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