NATO membership wakes up startups and investors: €100,000 investment opportunity at a pitch event
On 7 June, Pitch Finland DefSec will be held in Riihimäki in connection with the International Sportsmen’s Fair’s MaanpuolustusAreena Defence Exhibition. At the pitching event, start-up companies will compete for a €100,000 investment, and present their innovations publicly to Finland’s largest investors for the first time. This is the first pitch event on this scale in the start-up scene focusing on the defence and security sector.
The event is organised by Finnish Business Angels Network FiBAN, Tesi (Finnish Industry Investment Ltd), VTT Technical Research Centre of Finland, Business Finland, City of Riihimäki, DEFINE Defence Innovation Network Finland, Digital Defense Ecosystem, Finnish Venture Capital Association, and Finnish Information Security Cluster Kyberala. The event is part of the EU-funded Connect2Scale project and the DEFINE project led by the City of Riihimäki.
Although hundreds of companies apply for funding every year through FiBAN, finding finance for companies in the defence and security sector has been a challenge in the past. Finland’s membership of NATO has significantly increased investor interest in the defence sector. International investors have also turned their attention to Finland.
“The idea for the event, and thus the opportunity to map the number of start-ups in this sector, came from discussions among some venture capitalists and angel investors. The desire to help is felt to be particularly important at this time. But no investor does this just out of patriotism, the defence and security sector is going to grow rapidly over the next decade, and it pays to be part of that growth,” confirms FiBAN CEO Tiina Laisi-Puheloinen.
Strong defence expertise in Riihimäki
The event is organised as part of the MaanpuolustusAreena Defence Exhibition in Riihimäki. Riihimäki already has a defence manufacturing activities, and the city is building a stronger defence industry. The defence industry already employs more than 1,000 people in the area, and hosts the Finnish Defence Research Agency, the Finnish Defence Forces C5 Agency, the Electronic Warfare Centre, Sako, and Millog, among others.
“Cities are building growth on the back of their existing strengths. Riihimäki has strong expertise in the security and defence sector, and we want to harness it as a driver for Finland’s economic growth. We are proud to host this important new opening, which we hope will continue in the future,” says Riihimäki’s Mayor Jouni Eho.
Dual-use solutions for society: satellite technologies and quantum computers
In the defence and security sectors, dual-use in particular is seen as having strong potential, as dual-use technologies can be used in both civil and defence applications.
“There is now a strong demand for defence innovation, with Finland hosting a NATO Diana accelerator and two test centres for start-ups. We are therefore hoping for the highest possible participation from Finland in the 2024 Diana Challenge. The Pitch Finland DefSec event is a great example for identifying Finnish start-ups interested in the defence sector,” says VTT Vice President Sauli Eloranta.
Dual-use and defence technologies are also increasingly topical for Tesi, and Tesi is already a major investor in companies such as Sisu Auto and Rauma Marine.
“Our start-up and growth stage investments include Iceye, IQM, Varjo Technologies, and Dispelix. We are currently exploring how Tesi could be more actively involved in developing and internationalising the Finnish defence industry ecosystem together with other players in the sector,” says Keith Bonnici, Tesi’s Investment Director.
In addition to direct investments, in May 2023 Tesi invested EUR 35 million in the NATO Innovation Fund, which has a total size of EUR 1 billion.
“For Tesi, the June pitching competition provides an excellent opportunity to get to know promising early-stage dual-use companies,” Bonnici adds.
The Pitch Finland DefSec competition is open to applicants from Finland, the Baltics and the Nordic countries, and the deadline for startup applications is 26 April. Angel investors and venture capitalists are ready to invest €100,000 in the best company in the competition.
At the public event in the National Defence Arena, Finland’s role in NATO and the technology competition between the major powers will be discussed by Risto E.J. Penttilä and a representative of The Finnish Defence Forces. The discussion will continue in a panel with, among others, cyber security professor and Member of Parliament Jarno Limnéll, and Patria CEO Esa Rautalinko. In addition, the afternoon guest seminar will feature talks on innovation in the defence industry by Olli Ruutu from the Ministry of Defence and representatives of the business community.
MaanpuolustusAreena Defence Exhibition and Pitch Finland DefSec are organised in connection with the International Sportsmen’s Fair in Riihimäki.
Check out the Wilderness Fair event pages and tickets.
Further information
Tiina Laisi-Puheloinen
CEO, Finnish Business Angels Network (FiBAN)
Tel. +358 040 750 7417
tiina.laisi-puheloinen@fiban.org
Jouni Eho
Mayor, City of Riihimäki
Tel. +358 044 767 6674
jouni.eho@riihimaki.fi
Read more: Riihimäki is building a new kind of cooperation in the defense industry
Keith Bonnici
Investment Director, Tesi
Tel. +358 040 179 9584
keith.bonnici@tesi.fi
Read more: Finland joins NATO Innovation Fund
Sauli Eloranta
Vice President, VTT
Tel. +358 040 580 8664
sauli.eloranta@vtt.fi
Read more: Nato business accelerator to Finland
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