Finnish start-ups are more and more focusing their sights on defence technologies. Companies such as Kelluu, Distance Technologies and Varjo are at the forefront of this exciting change. From addressing increased security needs across Europe to creating new solutions for surveillance technology and military simulation, they are advancing their industries.
Kelluu, originally imagined as a lighter-than-air technology platform for atmospheric research, made a decision to focus in 2022. The startup soon pivoted to building surveillance capabilities with the specific intent of selling to cities, governments and academic institutions. This transition exemplifies the broader pivot we’re seeing from tech firms with their offerings. They are answering the recent calls for a stronger national security.
Another multi-sensory, start-up focused on head-set free immersive technologies, Distance Technologies – backed by Google – is witnessing a surge in interest. Following President Trump’s return to office in January, European militaries have begun to explore these technologies for potential applications in defence. The rapid increase in demand further indicates how the picture is changing around the view of technology in military or warfighting contexts.
“The reality has changed beyond recognition,” said Janne Heitela, one of the key players in the Finnish tech scene. Start-ups come at the whole thing with an entirely different mentality. They accept the “fail fast, learn faster” mentality, understanding that all of their bets can’t work out.
Finland’s resolve to sustain and defend its sovereignty is rooted in the countrys’ constitution, which guarantees military service for male citizens. This requirement has encouraged a sense of security awareness throughout the Finnish public. Mr Toikkanen, a tech veteran and former Nokia heir, explained that investors tended to be sceptical about technologies for military application. This was already a trend prior to the war in Ukraine. All that changed in a matter of weeks due to the pandemic, ushering in a massive paradigm shift.
As Mr. Toikkanen said, there is a new realization. We need to invest in our own defense, not just relying on NATO and the United States for our safety. This sentiment resonates deeply within Finland, a nation that remembers the Winter War against the Soviet Union during World War II.
At least one government agency, Business Finland, has been focused on this urgent need to improve defence capabilities via innovation. In 2022, the organization kicked off a new defense and digital resilience track. It provided €120 million to fund research and development projects from SMEs and startups. The goal of this new initiative is to strengthen Finland’s technological competence in national security.
Varjo, another luminary of the Finnish tech scene, is achieving global recognition for its military simulation technologies. The firm now aims innovations that help the military and governments of the world prepare for or respond to armed conflict. Today, Varjo’s headsets are in use, running on 80 simulation programs for NATO forces. These transformative technologies are being rolled out around the US and Europe. Since March 2022, smart glasses maker Varjo has raised over €50 million in follow-up funding. This major investment further cements its role in the emerging Boomerang defence sector.
The current return to passion for defence tech amongst Finnish firms is likewise rooted in Nokia’s history. Once the original global mobile phone behemoth, Nokia faced catastrophic disruption when Apple introduced the iPhone. The cumulative effect of this loss was an exodus of former employees who left to start or invest in new technology companies. The effect is a development tech ecosystem that’s incredibly dynamic, agile and responsive to new threats as they arise.
Helsinki has become an important centre for defence, security, and resilience investments. According to a report by Dealroom and the NATO Innovation Fund, it’s in the top five cities in Europe for these types of investments. This recognition reflects the city’s growing investment climate. This recognition reflects sharply Finland’s strategic importance for the European defence landscape.
We heard from Kirsi Kokko, a venture capital specialist who highlighted the importance of developing stories that capture the imagination about new technologies. “We want to have a positive narrative,” she said. This principle is especially important today as start-ups find their way through the emerging and often-treacherous waters separating innovation and national security.
Finland is taking the next step in its approach to defence technology. Businesses such as Kelluu, Distance Technologies, and Varjo are poised to spearhead the future of national security. Reclaiming the innovation Finland’s robust governmental backing has fueled its groundbreaking technology industrial base. Collectively, they establish the United States as an unequivocal leader in global defence innovation and enablers.