Finland’s Defence Tech Start-ups See Massive Growth Amid Geopolitical Tensions

Finland’s defence technology sector is rapidly growing, driven by geopolitical tensions and increasing demand for advanced military tech. The country, with a population of just five million, is home to 368 defence tech companies, 40% of which are start-ups and scale-ups. These companies are thriving, with many developing dual-use technologies that can serve both military and civilian sectors. One prominent company, Varjo, is producing cutting-edge mixed-reality headsets used by NATO forces in the US and Europe, which allow for more efficient and cost-effective military simulations. The company has seen its funding surge since the start of the war in Ukraine, raising over €50 million since March 2022. Other Finnish start-ups, like Iceye and Re-orbit, are innovating in satellite technology and surveillance platforms. Finland’s historical relationship with defence and its mandatory military service culture have fueled a strong entrepreneurial spirit in the sector. Despite challenges like the pace of start-ups versus large defence companies, Finland’s defence tech scene is expected to keep growing, aided by state support and the country’s reputation for innovation.