Ukrainian DefenseTech Fund Varangians Secures €9.1 Million Funding in Stockholm

Varangians: A New DefenceTech Investment Fund

Varangians, a Stockholm-based investment fund co-founded by Andreas Flodström, the founder of Beetroot, has successfully closed at over €9.1 million (100 million kronor). The primary focus of the fund is to support Ukraine’s DefenceTech ecosystem.

The fund has already made investments in Ukrainian DefenceTech companies such as Norda Dynamics, Himera, and Sine Engineering. Additionally, a fourth portfolio company, whose details remain confidential, has also been supported.

The co-founders of Varangians, Pär Lager, Andreas Flodström, and Jonas Rydin, expressed their motivation behind starting the fund: “We founded Varangians because we have seen how Ukrainian engineers innovate under fire; producing low-cost, effective tech that Europe urgently needs.”

Investment Focus and Mission

Established in 2025, Varangians primarily focuses on investing in Ukrainian DefenceTech startups. The fund also considers non-Ukrainian companies involved in military and civil defence. The fund’s investment strategy revolves around high-impact technologies tested in real frontline conditions, with a particular emphasis on unmanned systems, electronic warfare, strategic communications, demining, secure communications, and selected dual-use technologies.

Varangians, founded by a leading Swedish family office and entrepreneurs Pär Lager, Andreas Flodström, and Jonas Rydin, aims to strengthen Ukraine through DefenceTech investments. Simultaneously, it aims to support the re-arming of Sweden, the Nordics, and wider Europe through Ukrainian innovation, experience, and systems.

Current Portfolio

• Norda Dynamics: Developing an autonomous UAV piloting system for mission execution in communication-deprived environments.
• Himera: Building user-friendly, EW-resistant secure communications systems for civil and emergency use.
• Sine Engineering: Working on a next-generation UAV communication and positioning platform for contested environments involving jamming, interference, and spoofing.
• Confidential Company: Manufacturer of UAVs, UGVs, and components for unmanned systems, providing drone pilot training and an R&D lab for innovation and testing.

Operating Model and Vision

Varangians’ operating model includes targeted scouting, context-aware evaluation, and active support post-investment. The fund identifies promising companies through Ukrainian defence innovation ecosystems and trusted networks, assessing them based on technical insight, operational relevance, and governance standards.

Varangians also offers consulting services for organizations 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 fund’s name, Varangians, refers to the Swedish Vikings who played a significant role in the early history of Ukraine alongside Ukrainians. It symbolizes a renewed link between Sweden and Ukraine through technology, resilience, and defence innovation.

Founder’s Background and Beetroot

Andreas Flodström, known for co-founding Beetroot, a Swedish-Ukrainian tech ecosystem, has been instrumental in establishing Varangians. Beetroot, founded in Stockholm in 2012, has evolved from a backpack startup into an international tech company and social enterprise, engaging over 400 individuals across its headquarters in Sweden and R&D locations in Ukraine, Bulgaria, Poland, Romania, Moldova, and Vietnam.

Future Outlook

The launch of Varangians aligns with the growing venture capital interest in DefenceTech across Europe, with Ukraine emerging as a key source of battle-tested innovation. By supporting startups that address real frontline challenges, Varangians positions itself as a key player in technologies that can benefit Ukraine immediately and enhance European security in the long run.