Norwegian investors have launched an $85 million venture capital fund, Gardar, to focus on Ukrainian defense technologies. The fund’s founders believe that battlefield-developed innovations will play a central role in Europe’s future security architecture.
Norwegian investors have launched an $85 million venture capital fund, Gardar, to focus on Ukrainian defense technologies. The fund’s founders believe that battlefield-developed innovations will play a central role in Europe’s future security architecture.
Bloomberg reports this, citing a statement from the fund's managing partner, Erlend Prestgard. According to him, the institution was created by family offices and industrial investors who are looking to attract even more private capital to the initiative.
Gardar is comprised of Norway’s leading family offices. Key contributors include the Vitzoe family (owners of a large salmon farming business), the private equity firm Kistefos AS, and Johan G. Andresen, who owns the industrial and financial holding Ferd AS. The initiative was also joined by former EQT AB CEO Christian Sinding and the Verdane fund.
The new fund will invest in Ukrainian defense tech startups at early stages of development. The priority areas are unmanned aerial vehicles, autonomous systems and other military technologies, the development of which has significantly accelerated over more than four years of Russia's full-scale invasion. The expected return on the fund is declared at 15% per annum, although the authors of the project acknowledge high uncertainty due to extreme operating conditions.
"The goal is twofold: to build and strengthen Ukrainian companies in the security sector, as well as to strengthen Europe's defense potential. One dollar invested in Ukrainian defense has a much greater effect than a dollar invested in the defense sector of the United States or other European countries," Erlend Prestgard emphasized.
He also added that if additional partners are attracted, the fund's size could increase to 1 billion Norwegian kroner (about $100 million) by the fall.
