A new defense startup accelerator DEFINE Accelerator has been launched in Finland to accelerate the growth of security and dual-use technologies

A new startup accelerator in the defense and security sector, Defense Innovation Network Finland’s DEFINE Accelerator, has started in Riihimäki, which brings together key players from the Finnish Defense Forces, leading defense companies and educational institutions.

The aim of the accelerator is to speed up the development of technological innovations and promote the growth of companies with the help of Riihimäki and Kanta-Häme’s strong defense industry and technical infrastructure and know-how.

Riihimäki: pioneer of Finnish defense technology

The Riihimäki region has strong traditions in the field of top technology and defense innovations. The teaching of robotics has already been part of the curriculum of the city’s primary schools for years, increasing an early interest in technology. Häme University of Applied Sciences HAMK’s expertise in the fields of automation, robotics and mechanical engineering produces experts with high-level technical skills and a strong understanding of new technologies.

“Our task is to help start-up companies succeed by providing the right resources, mentoring and connections with partners, which enable companies to navigate the demanding environment of the defense industry and commercial markets,” says Teemu Seppälä, director of technology and innovation in the city of Riihimäki.

Riihimäki is also home to key defense organizations such as the Defence Forces Research Agency, C51 School, Centre for Electronic Warfare, Centre for Military Medicine, Logistics School, Signal School, Protolab of the Joint Systems Centre of the Logistics Command, and the industrial companies Sako and Millog. Together with these organizations, Riihimäki has grown into Finland’s leading player in the defense and technology industry. “We understand how important it is to bring the defense industry closer to entrepreneurs and startups. DEFINE is a very welcome project that helps develop the future of defense technology in Finland,” says Toni Piispa, Millog’s director, authorities and industry.

The DEFINE Accelerator, coordinated by the city of Riihimäki, is managed by Redstone, a Berlin-based venture capital firm that also has offices in Helsinki and Zurich. The three-month accelerator program supports startup companies that develop dual-purpose technological solutions suitable for both military and commercial use. The accelerator gives participants access to a network of world-class mentors, experts and actors in the defense industry. Within the framework of the accelerator, participants can validate their technological solutions and test their commercial potential. The most advanced companies also have the opportunity to obtain financing to grow their business.

NATO’s newest member has a thriving defense industry

The geopolitical reality of Europe has changed, and since Finland now has the longest border with Russia of all NATO members, the Finnish defense industry has developed very quickly. The Defense and Aerospace Industry Association PIA ry estimates that the turnover of the Finnish defense industry will grow to 2.5 billion euros this year. According to a recent study by the state capital investment company Tesi, the annual growth in turnover of Finnish dual-use companies has averaged more than 30% over the past three years. Finland’s accession to NATO has expanded the market for Finnish companies to 32 countries.

The defense forces have always been an integral part of Finnish society. Finland is one of the few European countries with a large reserve and mandatory conscription.

The current development of the Finnish defense industry is in line with the wider development of the European Union. According to the European Commission, between February 2022 and June 2023, EU member states spent 100 billion euros on the defense industry, of which 80% was spent on procurement outside the EU. The Commission is now working to change this balance and its goal is that by 2030, 50% of defense purchases will come from Europe.

World-class support and expertise

The DEFINE Accelerator consists of a respected group of experts, which includes e.g. acting as the program’s special advisor, lieutenant general (not in active service) Ilkka Korkiamäki. Korkiamäki brings invaluable experience to the team. He has worked in various positions in the Defense Forces, including the personnel manager of the Defense Forces, the rector of the National Defense University and the management system manager of the General Staff.

The head coaches Kaj Hagros, an expert in strategy and business development, and Oskari Lehtonen, an expert in investments and market growth, lead the accelerator. Accelerator coaching team also includes experts from the defense industry and the most successful dual-use companies in the field, such as ICEYE, Varjo and Kelluu.

Military innovation extends beyond the battlefield

Many dual-use solutions born out of military innovations have had a profound impact on society. Some of the world’s most advanced technologies, such as the Internet, GPS and touch screen, have been born from research and development in the defense sector. DEFINE proudly continues this tradition by promoting the creation of technologies that benefit both the commercial and defense markets.

European defense startups are also growing. According to Dealroom, $976 million worth of deals were made in the industry in 2023, compared to $614 million in 2022. A significant part of this is due to public sector investments, such as NATO’s $1 billion startup fund and the European Investment Fund’s €175 million fund for dual-use technologies.

Applications open for the first accelerator program

DEFINE is now accepting applications for the accelerator program, which is scheduled to start in late 2024. The program is open to startups and early-stage companies with scalable technological solutions, an MVP or prototype and a motivated team. The selected participants will receive mentoring from top experts in the defense and technology industry, accelerator facilities and infrastructure in Riihimäki, as well as direct contact with potential investors and customers in the NATO and EU ecosystems.

Interested startup companies can apply for the accelerator program on the website: DEFINE Accelerator – Defense Innovation Network Finland (definefinland.fi).

About DE­FI­NE

Defense Innovation Network Finland (DEFINE) is the leading innovative ecosystem in the defense industry in the Nordic countries, initiated by the city of Riihimäki. Its goal is to build an international, high-level defense and security industry network. DEFINE’s innovation ecosystem brings together the best military and civilian experts to create new innovations that serve both military needs and society as a whole. The DEFINE dual-use technology business accelerator project is part-financed by the European Union, and the project’s funding authority is the Häme Center for Business, Transport and the Environment. Other financiers of the project are OP Häme and the city of Riihimäki.

About Redstone

Founded in 2014, Redstone VC is a leading European private equity firm with headquarters in Berlin and offices in Zurich and Helsinki. Redstone focuses on early-stage European companies operating in seven key sectors: industrial deep technology, financial technology, real estate technology, energy efficiency, climate technology, quantum computing and social impact projects. Redstone has established and actively managed a portfolio of over 100 companies using this focused approach.