Lithuania pioneering defense innovation ahead of the NATO Summit

Vilnius, Lithuania. As nations across the globe grapple with the evolution of warfare and defense, Lithuania is stepping up to the forefront of defense innovation, with its venture capital funds playing a transformative role. With a spotlight on Lithuania on the eve of the NATO Summit, an event highlighting Lithuanian defense innovations deployed in Ukraine revealed how technology is revolutionizing the nature of warfighting.

NATO Announces Leadership for its €1bn Innovation Fund for Defense

During the pre-NATO Summit event held in Vilnius on July 10th, 2023, titled “Innovation & Investments for Defence, Deterrence & Security,” Andrea Traversone, the newly appointed Managing Director of €1bn NATO Innovation Fund (NIF), took the stage for the first time to emphasize the significant role of innovation within NATO. “Innovation in emerging and disruptive technologies must be responsible and led by fundamental principles: safety, freedom, and human empowerment. All of which are synonymous with NATO’s democratic values and the NIF’s mission.” Traverson stated.

Andrea Traversone elaborated on the NIF’s upcoming plans, expressing a strong commitment to cultivating relationships and playing a pivotal role in innovation. The Fund is committed to actively reaching out to startups, demonstrating a two-way interest.

He highlights the unique position of smaller countries as innovation frontrunners, emphasizing the need for such nations to scale their operations globally immediately.

Showcasing Groundbreaking Innovations

The event showcased an array of innovative solutions developed by Lithuanian SMEs, with capabilities spanning electronic warfare, long-range initiators, anti-drone solutions, space lasers, and non-jammable UAVs.

These aren’t just theoretical developments but practical, field-tested technologies that have proven their mettle in the Ukrainian conflict. As Dominykas Milašius, Venture Partner at Baltic Sandbox Ventures, affirmed, “These emerging tech solutions not only contribute to Ukrainian forces in their ongoing counter-offensive but also provide a new model for warfare that can benefit all NATO members. Some of them are already proving the value of their tech on the frontlines.”

For instance, “RSI Europe,” a Lithuanian company, developed the RISE-1 remote detonation system, which can be deployed for various military and commercial applications. Meanwhile, “Unmanned Defense Systems,” a startup founded by Unmanned Aerial Systems (UAS) and Satellite technology experts, created fully autonomous drones used for misleading the enemy into revealing its position and for protecting high-value UAVs and aircraft — a solution already employed in Ukraine.

Other noteworthy startups featured include “Aktyvus Photonics,” “Astrolight,” “Blackswan Space,” “Krampus by OstraLab,” “MappingSoil,” and “Skycorp.”

Lithuanian VC Funds: Fuelling Innovation

Lithuania’s venture capital funds, amassing a formidable $55M “dry powder” for dual-use investments, have played a crucial role in these innovations. Andrius Milinavičius, Managing Partner of Baltic Sandbox Ventures, underlined the importance of these funds, stating, “We concentrate on DeepTech, which includes Dual-Use tech because we understand the intricacies of the innovation commercialization journey. We offer robust support to startups navigating the dual-use sector to ensure their innovations reach end-users.”

In her opening statement at the event, Erika Kuročkina, Vice Minister for Economy & Innovation of the Republic of Lithuania, stated, “A vast expanse of opportunities lies ahead in diverse sectors such as aerospace, AI, and photonics. Our defense industry is open and collaborative, focusing on cutting-edge technologies. We aim to drive economic growth through these technological advancements, even as we strengthen security and provide assistance to Ukraine.”

With a robust infrastructure that Lithuania has built in less than two years, it is ready to channel this capital into promising startups, cultivate more disruptive technologies, and further the nation’s defense capabilities.

About Coinvest Capital

“Coinvest Capital is an early-stage venture capital fund established by INVEGA, using public funds from the EU and the budget of the Republic of Lithuania, investing together with business angels and other venture capital funds in young promising Lithuanian companies. The fund’s portfolio now includes 27 start-up companies. Out of the fund’s capital of 25.5 million euros, the available capital for new investments amounts to 15 million euros. https://www.coinvest.lt