News Summary

Lithuania is making significant strides in defense technology investments through its sovereign venture capital fund, Coinvest Capital. This fund has been a leader in the region, focusing on startups in defense, aerospace, and dual-use technologies. Since its full authorization for defense investments in March 2023, Coinvest has invested approximately €6.8 million in early-stage startups like Unmanned Defense Systems (UDS). The fund co-invests with business angels and other VCs, adopting a capped profit-sharing structure to enhance returns for angel investors. Lithuania’s focus on co-creation and smart investments has multiplied the collective value of its startup ecosystem, although the country seeks an exit as impactful as Estonia’s Skype. The fund’s operations are supported by Lithuania’s national development bank and have contributed to the NATO Innovation Fund. Beyond defense, Coinvest continues to support diverse startup initiatives, emphasizing the necessity of supporting Ukraine amidst ongoing geopolitical threats.