Mon, 31 Mar 2025

Mon, 31 Mar 2025 The Finnish defence firms 'on steroids'

Helsinki has become one of the top five cities in Europe for investment in defence and security technologies.
Finland has become one of Europe's major hubs for defense technology innovation, with over 368 companies in the sector and many more on the rise. Varjo, a leading company in this field, has developed advanced virtual reality headsets that combine synthetic and real-world environments to simulate high-stakes military operations. These "mixed reality" experiences can reduce training costs and improve efficiency for fighter pilots. The company's CEO, Timo Toikkanen, says that the Russian invasion of Ukraine has boosted interest in defense technology, with investors no longer shying away from companies with a focus on this sector. Varjo has raised over €50m in funding since March 2022 and is working with Nato forces in the US and Europe. Finnish start-ups like Iceye and Re-orbit are also making waves in the defense and dual-use sectors, while companies like Distance Technologies are developing headset-free immersive technologies. The country's strong tech scene, government support, and cultural emphasis on preparedness for defense have all contributed to its success in this area. However, challenges remain, including a "culture clash" between agile start-ups and traditional defense companies, as well as competition from global talent markets. Despite these hurdles, Finland's reputation for innovation and entrepreneurial spirit is likely to continue driving growth in the sector.
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