Swedish Tech Founders Pivot to Defense Investments as Sector Grows

Sweden's most successful startup founders are now backing defense technology ventures. The group includes leaders behind Klarna, Spotify, Voi, and Kry.

The Ukraine war and rising European tensions accelerated venture capital interest in dual-use and defense innovation. Sifted data shows European defense tech startups raised roughly €3.5 billion this year, nearly doubling the €1.8 billion raised throughout 2024.

Swedish consumer tech founders are entering the defense race. Sebastian Siemiatkowski from Klarna recently acquired majority ownership of industrial defense firm Defensor through his investment vehicle Flat Capital.

Daniel Ek of Spotify invests through family office Antheia, backing UK defense fund High Tor Capital. Fredrik Hjelm from Voi and Johannes Schildt from Kry channel capital into MW Group, which focuses on air defense and drone technologies. Karl Rosander from Acast cofounded Nordic Air Defence, a startup developing drone interceptor systems.

Schildt explained the mindset shift. With Ukraine's invasion, people realized peace requires investment. Before this, Sweden maintained a naive attitude toward Russia and defense needs.

These companies emphasize four themes. Smaller agile defense systems prioritize speed and cost-effectiveness over decades-long heavy equipment programs. Dual-use innovation blends civilian technology with military applications, reducing risk while expanding markets.

Nordic manufacturing combines startup agility with larger industrial capacity. European tech sovereignty reduces reliance on external defense suppliers.