Front Ventures raises €5M to back defence tech innovation in Ukraine

Stockholm-based defence-focused investment company Front Ventures has raised €5 million through an oversubscribed rights issue of B-shares, with the raise subscribed to 278 per cent. The company backs early-stage defence technology companies developing operationally relevant systems in Ukraine and Sweden.

The round included participation from all major shareholders, including CEO Jonas Malmgren and board member and former CEO Johan Lund, alongside new investor Roglar Holding, which brings production and industrial expertise. APREA Partners AB acted as financial advisor, Advokatfirman Lindahl KB as legal advisor, and Aqurat Fondkommission AB served as lead manager for the rights issue.

Front Ventures invests across software, drone systems, communications, and critical defence supply chains, with a particular focus on companies that have already developed working prototypes and are ready to scale. The company aims to bridge the gap between battlefield-tested Ukrainian innovation and access to European and NATO industrial partnerships.

Its portfolio includes:

• SkyHunter - which develops target allocation solutions for drone interceptors,
• Aeromotors - a Ukrainian manufacturer of drone propulsion systems supplying NATO-aligned markets, and
• Kyiv-based Black Forest Systems - developer of the SHADOX infantry drone system.

Front Ventures is also an approved investor in Brave1, the Ukrainian government’s defence tech platform connecting innovators with investors and the military.

Jonas Malmgren, CEO of Front Ventures, said:

We’re seeing a generation of defence companies that have effectively skipped the lab phase because their products have already been tested in operational environments. The challenge is no longer innovation itself, but scaling and industrialising these technologies quickly enough. This raise is intended to help accelerate that process.

Founded in 2012, Front Ventures previously invested in fintech, enterprise software, and blockchain companies before shifting its strategic focus toward defence technology. Investment sizes from the current raise are expected to range between €200,000 and €2.5 million per company.

With the new funding in place, Front Ventures plans to expand its defence technology portfolio across Ukraine and Sweden, focusing on companies developing technologies in areas such as drones, communications, software, and critical supply chains.