Estonia’s startup scene has seen a surge of new defense technology companies since Russia’s full-scale invasion of Ukraine in 2022, said Estonian entrepreneur Ragnar Sass.
Estonia’s startup sector has previously focused on financial technologies, but interest has turned to the defense industry in recent years, said Ragnar Sass, an Estonian investor, entrepreneur and founder of the defense organization Darkstar.
“Three years ago, there were only about a dozen defense startups in Estonia, but now we are talking about at least a hundred startups. Innovation created in Estonia is also an international player,” he said in a press release from the Estonian Startup Awards.
Startup Estonia said defense startups are “rapidly contributing” to the growth of the local startup sector.Â
A Milrem Robotics THeMIS unmanned ground vehicle (UGV). Source: Milrem Robotics
Milrem Robotics, Threod Systems, and Defsecintel Solutions were the three startups with the highest turnover and largest workforces in 2025.
Sass said innovation in the defense sector is of “critical importance” and that the country cannot feel safe with yesterday’s technology. He said he launched Darkstar to connect people and organizations and bring “ultra-fast innovation” to the defense sector.
Large international investors are also boosting the scene, he said: “A few years ago, investing in the defence industry was a red flag for many institutional investors, but times have changed and the defence industry, which was considered a niche field, is today an international trend.”
Companies such as Wayren, Lendurai, Frankenburg Technology, Defensphere and C2Grid have attracted international investment. Sass said several more have not been publicly announced.
You can find out more about Sass’ work below in an interview with Ukrainian military news outlet Militarnyi.
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