As Europe increases defence spending, Stockholm-based Front Ventures has raised €5 million through an oversubscribed rights issue of B-shares to back defence technologies developed in Ukraine and Sweden.
The public investment company focuses on technologies already proven in operational use, particularly in software, drones, communications, and defence supply chains.
The raise was oversubscribed by 278% and attracted participation from all major shareholders, including CEO Jonas Malmgren and board member and former CEO Johan Lund. Roglar Holding also joined as an investor, bringing manufacturing expertise to help portfolio companies scale production.
Founded in 2012 and led by Jonas Malmgren, Front Ventures initially invested in fintech, enterprise software, and blockchain companies before shifting its focus towards defence technology. The company now operates from Stockholm and Lviv with a specialised team combining military, industrial, and company-building experience.
Front Ventures targets early-stage companies that have already developed working prototypes and are preparing for commercial and industrial expansion. The company aims to bridge Ukrainian defence innovation with NATO customers and Swedish manufacturing capabilities
“We’re seeing a generation of defence companies that have effectively skipped the lab phase , because they’ve had to. Their products are tested in the harshest environments imaginable, iterated at speed, and proven to work. The problem isn’t innovation, it’s that the West has been too slow to fund and scale it,” says Jonas Malmgren, CEO of Front Ventures.
By focusing on deployable technologies rather than long development cycles, Front Ventures is positioning itself around startups building systems designed for immediate operational use and NATO-aligned defence markets.
Investment sizes from the raise will range between €200,000 and €2.5 million per company. Front Ventures has already identified two additional investments in the defence technology sector, though details remain undisclosed.
Its portfolio includes SkyHunter, which develops target allocation systems for drone interceptors, Aeromotors, a Ukrainian producer of drone propulsion systems supplying NATO-aligned markets, and Kyiv-based Black Forest Systems, creator of the SHADOX infantry drone platform now moving towards industrial production.
The company is also an approved investor in Brave1, the Ukrainian government-backed defence technology platform connecting startups with investors and military users. Through the platform, Front Ventures gains access to battlefield-tested technologies and faster validation processes compared with traditional European defence procurement systems.
The €5 million will fund two additional investments already identified in the defence technology sector, with details remaining undisclosed.
TFN reached out to Front Ventures to comment.
