Scale Wolf will invest €17M into defense startups from Lithuania

Lithuanian fund Scale Wolf will invest €17M into Lithuanian startups that develop solutions in the areas of defense and security. The fund is focusing on artificial intelligence, IT, lasers, optics, cybersecurity, virtual reality, teams with innovative ideas, and scientists.

Scale Wolf will help develop startups' business ideas, build teams, and make initial investments in startups from the pre-acceleration program, which will start on September 20th. Then, Scale Wolf will select the best teams for the acceleration program, which will start on October 30th. The existing companies and startups that have developed new products or services and want to enter other markets will receive money from the Scale Wolf VC fund.

Scale Wolf consists of two funds: Scale Wolf VC fund and Scale Wolf Accelerator fund. In March 2023, the initial size of the funds, established by Lithuanian state-owned company INVEGA, was €13,5M, but they managed to raise additional investments from private investors. 

The funds are controlled by the venture capital facility MILInvest. The head of Scale Wolf VC fund is Edvinas Kerza.

According to Edvinas Kerza, the state is already engaged in the development of new technologies in the defense area. The representatives of the armed forces and experts receive information from the troops in Ukraine about their needs. Then, it sends to Ukraine the equipment and technologies developed by startups. For example, Ukraine's army needs drone systems that are difficult to detect by the enemy, and that can accurately capture all sorts of objects. For Lithuanian startups, it is important to develop various components for drones so that these systems can help detect mines and neutralize them. Once the field is cleared, the army forces can move forward faster. 

In addition, Lithuanian experts are developing a technology that will make an artillery shot extremely accurate, directing it at the target. For this, they will use a laser.

Edvinas Kerza also noted that due to the change in the geopolitical situation, many mutual funds have started to include the development of defense and civil products in their investment portfolio.