Key Takeaways
- • Finland attracted nearly 90 percent of Nordic defense and dual-use technology venture capital since 2020, according to the Nordic Defence Tech Report 2026 jointly produced by Danske Bank and Dealroom.
- • Companies operating in Finland raised $1.6 billion in venture capital since 2020, with major rounds led by quantum computing firm IQM and satellite company ICEYE.
- • Nearly a quarter of all Finnish venture capital since 2023 went to defense and dual-use companies, the second-highest share in Europe after Ukraine, versus 16 percent in Germany.
- • Valuations of Nordic defense and dual-use technology companies rose more than tenfold over the past six years.
- • Nordic investors supplied 61 percent of early-stage funding since 2019, while in rounds of at least $15 million they accounted for 53 percent, with the rest coming from elsewhere in Europe (22 percent) and the United States (17 percent).
Summary
Finland has become the leading destination for venture capital 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 and reported by Xinhua. The Nordic Defence Tech Report 2026, jointly produced by Danske Bank and Amsterdam-based data intelligence firm Dealroom, found that companies operating in Finland have raised 1.6 billion U.S. dollars in venture capital since 2020.
Dual-use technologies, as defined in the report, are those applicable to both civilian and military sectors, spanning national security and defense as well as healthcare, infrastructure and energy. Growth across the Nordic region has been driven largely by major funding rounds involving Finland-based quantum computing company IQM and satellite technology company ICEYE. Since 2023, nearly a quarter of all venture capital raised in Finland has gone to the sector, the second-highest share in Europe after Ukraine; the corresponding figure for Germany was 16 percent.
Valuations of Nordic defense and dual-use companies have risen more than tenfold over the past six years. Nordic investors have led financing, accounting for 61 percent of early-stage venture capital investments since 2019. However, the investor base has become more international in larger rounds. For rounds of at least $15 million, Nordic investors accounted for 53 percent of participants, followed by other European investors at 22 percent and U.S. investors at 17 percent.
Teppo Havo, head of startups and growth companies at Danske Bank, said Helsinki is a significant hub for defense and dual-use startups, standing out clearly from other Nordic capitals. Havo noted that financing in this sector differs significantly from the conventional startup market, with European investors and public-sector entities playing a central role.
The report examined 170 Nordic startups developing defense and dual-use technologies, including space and quantum applications. Context cited in the report includes the European Commission's 2026 country report, which put Finland's research and development spending at 3.22 percent of GDP in 2024, about one percentage point above the EU average. Finland joined NATO in 2023 and has sought to deepen cooperation with allied defense industries amid a changed European security environment following the escalation of the Russia-Ukraine conflict in 2022.
Dual-use technologies, as defined in the report, are those applicable to both civilian and military sectors, spanning national security and defense as well as healthcare, infrastructure and energy. Growth across the Nordic region has been driven largely by major funding rounds involving Finland-based quantum computing company IQM and satellite technology company ICEYE. Since 2023, nearly a quarter of all venture capital raised in Finland has gone to the sector, the second-highest share in Europe after Ukraine; the corresponding figure for Germany was 16 percent.
Valuations of Nordic defense and dual-use companies have risen more than tenfold over the past six years. Nordic investors have led financing, accounting for 61 percent of early-stage venture capital investments since 2019. However, the investor base has become more international in larger rounds. For rounds of at least $15 million, Nordic investors accounted for 53 percent of participants, followed by other European investors at 22 percent and U.S. investors at 17 percent.
Teppo Havo, head of startups and growth companies at Danske Bank, said Helsinki is a significant hub for defense and dual-use startups, standing out clearly from other Nordic capitals. Havo noted that financing in this sector differs significantly from the conventional startup market, with European investors and public-sector entities playing a central role.
The report examined 170 Nordic startups developing defense and dual-use technologies, including space and quantum applications. Context cited in the report includes the European Commission's 2026 country report, which put Finland's research and development spending at 3.22 percent of GDP in 2024, about one percentage point above the EU average. Finland joined NATO in 2023 and has sought to deepen cooperation with allied defense industries amid a changed European security environment following the escalation of the Russia-Ukraine conflict in 2022.
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