Original Coverage & Source Attribution: www.dailyfinland.fi
Finland has emerged as the leading destination for venture capital investment in defense and dual-use technologies in the Nordic region, attracting nearly 90 percent of the sector’s total funding since 2020, according to a report released on Thursday, reported Xinhua.
The Nordic Defence Tech Report 2026, jointly produced by Danske Bank and Amsterdam-based data intelligence firm Dealroom, showed that companies operating in Finland have raised 1.6 billion U.S. dollars in venture capital since 2020.
According to the report, dual-use technologies are those that can be applied in both civilian and military sectors, ranging from national security and defense to areas such as healthcare, infrastructure and energy.
“Helsinki is a significant hub for defense and dual-use technology startups, standing out clearly from other Nordic capitals,” said Teppo Havo, head of startups and growth companies at Danske Bank.
Havo said Finnish defense technology companies have secured substantial funding through large investment rounds, contributing significantly to the country’s leading position in the Nordic market.
Venture capital raised by defense and dual-use technology companies across the Nordic region has surged since 2020, driven largely by major funding rounds involving Finland-based quantum computing company IQM and satellite technology company ICEYE, the report said.
Since 2023, nearly a quarter of all venture capital raised in Finland has gone to defense and dual-use technology companies, the second-highest share in Europe after Ukraine. The corresponding figure in Germany was 16 percent.
The report also found that valuations of Nordic defense and dual-use technology companies have increased more than tenfold over the past six years.
Nordic investors have played a leading role in financing the sector, accounting for 61 percent of early-stage venture capital investments since 2019.
However, the investor base has become more international in larger funding rounds. For rounds of at least 15 million U.S. dollars, Nordic investors accounted for 53 percent of investors, followed by those from elsewhere in Europe at 22 percent and the United States at 17 percent.
Havo noted that financing for defense and dual-use technologies differs significantly from the conventional startup market, with European investors and public-sector entities playing a central role.
Finland has a well-established high-tech research base and has sought to strengthen its defense technology sector amid growing security concerns and closer cooperation with NATO.
According to the European Commission’s 2026 country report, Finland’s research and development spending reached 3.22 percent of GDP in 2024, about one percentage point above the EU average, reflecting the country’s strong research and innovation capacity.
The European security environment has changed significantly since the escalation of the Russia-Ukraine conflict in 2022, increasing attention to defense-related technologies. Since joining NATO in 2023, Finland has sought to deepen cooperation with allied defense industries and expand opportunities for domestic technology companies, local media reported.
The report examined 170 Nordic startups developing defense and dual-use technologies and defense-related applications, including space and quantum technologies.
