Norwegian investors have launched Gardar, an $85 million venture fund to invest in Ukrainian defense technologies, expecting that solutions developed and tested in wartime conditions will become an important part of Europe’s future security system.
The fund was formed with the participation of major private investors, entrepreneurial families and industrial companies from Norway. According to Gardar Managing Partner Erlend Prestgaard, the fund’s volume could grow to NOK 1 billion, around $100 million, by the autumn if new investors join the project.
Among the fund’s participants are some of Norway’s best-known business families, including the Witzoe family, which owns the country’s largest salmon farming company, investment firm Kistefos AS, and Johan H. Andresen, owner of the industrial and financial holding Ferd AS. The investors also include former EQT investment group executive Christian Sinding and Verdane.
Gardar plans to invest in early-stage Ukrainian companies operating in the defense technology sector. More than four years of war have accelerated the development of drones, autonomous systems, electronic warfare tools and other innovative military solutions in Ukraine, which are now attracting the attention of international investors. The fund expects returns of around 15% per year, although its management acknowledges that investing during an ongoing war involves elevated risks.
The launch of the fund reflects growing interest from European business in Ukraine’s defense sector. Amid increasing military spending by European countries and efforts to strengthen their own defense industries, Ukraine is increasingly viewed not only as a recipient of aid, but also as a source of advanced military technologies and practical experience.
According to Prestgaard, the fund has two objectives: to support the development of Ukrainian companies in the security sector and, at the same time, strengthen Europe’s defense capabilities. He noted that the effectiveness of investment in Ukrainian defense technologies is currently significantly higher than in many other countries.
“One dollar invested in Ukraine’s defense industry can deliver a much greater result than one dollar invested in the defense sector of the United States or other European countries,” the fund’s managing partner emphasized.
The emergence of Gardar is another signal that Ukraine’s defense-tech sector is gradually becoming a full-fledged area of international investment. For Ukrainian developers, this opens new opportunities to attract capital, expand production and enter foreign markets, while for European partners it provides access to technologies whose effectiveness has been proven in real combat conditions.
