Swedish group Varangians has invested in two Ukrainian defence startups and is preparing at least three more deals

Swedish investment group Varangians has invested in two Ukrainian defence tech companies, the firm’s co-founder Pär Lager told Defender Media.

He did not disclose the companies’ names, but said one develops AI-powered target recognition for aerial reconnaissance, while the other manufactures mid- and deep-strike drones. Lager described both companies as leaders in their respective fields.

The investors have not disclosed the exact amounts, but said one investment exceeds €500,000 and the other is below that threshold. Varangians typically invests between €100,000 and €1 million.

In parallel, the Varangians are working on follow-on investments in three portfolio companies. Before this announcement, it comprised four startups:

• Himera – developer of a secure communication system;
• Sine Engineering – creates a communication and positioning platform for UAVs in challenging conditions;
• NORDA Dynamics – developer of autonomous systems for UAVs;
• An unnamed company that produces UAVs, UGVs and drone components.

In addition, the investors are conducting due diligence on about five companies that could potentially receive funding. They operate in the fields of unmanned systems, solutions powering these systems, electronic warfare, demining, reconnaissance and disinformation.

The Swedish group Varangians, founded by Pär Lager, Andreas Flodström and Jonas Rydin, announced a closed-end fund of €10 million in June this year.

At the time, Lager said that their goals included investing in solutions capable of quickly helping Ukraine in the war and supporting Europe’s rearmament through cooperation with Ukrainian companies.