Front Ventures plans to invest €5m in Ukrainian and Swedish defence companies

Swedish investment firm Front Ventures has raised €5m and plans to deploy the funds into deftech startups from Ukraine and Sweden. The firm is now able to invest in more promising companies and acquire larger ownership stakes than before, said founder and CEO Jonas Malmgren.

According to Tech.eu, the average investment size will range from €200,000 to €2.5m per company. Malmgren previously told Defender Media that the firm plans to invest in a further two to four Ukrainian manufacturers this year. Portfolio businesses will also receive support in scaling production and raising new capital.

The CEO also previously stated that in 2026 the Swedish firm intends to focus on joint UAV development, including design and the manufacturing of drone components. He states that the company is currently working on a new area: payload manufacturing in Sweden, intended for interceptor and strike drones used by Ukraine.

Among the businesses in which Front Ventures has invested in Ukraine are:

• Aeromotors, a manufacturer of electric motors for drones;
• Black Forest Systems, a Ukrainian-Estonian developer of unmanned aerial vehicles;
• Sky Hunter, a developer of the interceptor drone guidance app.

Front Ventures’ portfolio also includes Scandinavian X, a Ukrainian-Swedish joint venture launched by Front Ventures, Skygaard, Hede Capital, and Ukrainian company Vluchnyk. It produces interceptor drones, which feature an engine developed in collaboration with Aeromotors.