The state-owned fund management company SmartCap's Defense Fund invested 10 million euros in Estonia's first defense technology venture capital fund, Darkstar, which focuses on companies developing military and dual-use technologies whose products have been tested on the Ukrainian battlefield.
According to Erkki Keldo, Minister of Economic Affairs and Industry, Estonia's development of its defense industry is part of ensuring national security and improving the competitiveness of the economy.
The activities of the Defense Fund will increase the availability of defense capital, which has been difficult for defense industry companies to attract from the private sector so far. SmartCap's 10 million euro investment in the Estonian venture capital fund Darkstar will serve as an anchor investment, and the additional private investments will increase the total volume of the fund to up to 25 million euros.
Darkstar is a pan-European fund focused on innovative defense technologies, which focuses on companies developing both dual-use and military technology and helps them come to Estonia to establish their production here and expand further into Europe. "For example, Farsight, which received the first investment from Darkstar, has brought its headquarters to Estonia and hired its first employees here," the minister explained.
According to Mart Noorma, co-founder of Darkstar, Darkstar's broader goal is to strengthen the defense capability of Estonia and Europe and ensure that it would be possible to produce defense weapons locally in crisis situations. “As much of the critical components of armaments as possible should be produced primarily in Estonia, or also in Latvia, Lithuania, the Nordic countries or Poland,” said Noorma.
In addition to the international reach, attention is also being paid to local companies. “We see that new entrepreneurs are emerging from previous success stories in the start-up sector, focusing on defence technology. University students are also developing defence technologies, which shows that a strong start-up sector in the defence sector is emerging in Estonia,” added Noorma.
SmartCap’s Defence Fund makes direct investments in seed, early-stage and growth-stage defence companies that develop or produce military and dual-use products and technologies. In addition, new defence-focused venture capital and private equity funds are being launched through fund investments to increase and diversify the supply of capital in the defence sector.
Source: FoundME
The activities of the Defense Fund will increase the availability of defense capital, which has been difficult for defense industry companies to attract from the private sector so far. SmartCap's 10 million euro investment in the Estonian venture capital fund Darkstar will serve as an anchor investment, and the additional private investments will increase the total volume of the fund to up to 25 million euros.
Darkstar is a pan-European fund focused on innovative defense technologies, which focuses on companies developing both dual-use and military technology and helps them come to Estonia to establish their production here and expand further into Europe. "For example, Farsight, which received the first investment from Darkstar, has brought its headquarters to Estonia and hired its first employees here," the minister explained.
According to Mart Noorma, co-founder of Darkstar, Darkstar's broader goal is to strengthen the defense capability of Estonia and Europe and ensure that it would be possible to produce defense weapons locally in crisis situations. “As much of the critical components of armaments as possible should be produced primarily in Estonia, or also in Latvia, Lithuania, the Nordic countries or Poland,” said Noorma.
In addition to the international reach, attention is also being paid to local companies. “We see that new entrepreneurs are emerging from previous success stories in the start-up sector, focusing on defence technology. University students are also developing defence technologies, which shows that a strong start-up sector in the defence sector is emerging in Estonia,” added Noorma.
SmartCap’s Defence Fund makes direct investments in seed, early-stage and growth-stage defence companies that develop or produce military and dual-use products and technologies. In addition, new defence-focused venture capital and private equity funds are being launched through fund investments to increase and diversify the supply of capital in the defence sector.
Source: FoundME
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