SmartCap Defence Fund invests €10 million in Darkstar, the first dedicated pan-European venture capital fund focused on military and dual-use technologies tested on the battlefield in Ukraine. This represents an anchor investment for Darkstar and the first investment for SmartCap Defence Fund.
Darkstar team. From left to right: Kaspar Gering, Ragnar Sass, Valeriia Sviripa, Mart Noorma.
Darkstar bridges frontline combat experience from Ukraine with European defence innovation, connecting battlefield-tested startups with the funding, real-world validation, and strategic partnerships they need to scale. The fund is designed to equip Estonia and Europe with the next generation of modern weapon systems and industry know-how, grounded in real combat performance.
“SmartCap’s mission is to diversify and increase the supply of equity investments for Estonian companies with export potential. We are extremely pleased to make the first SmartCap Defence Fund investment into an Estonian defence-sector VC fund. Darkstar is one of the first institutional quality VC funds in Europe that will significantly contribute to the development of defence technology companies in Estonia, Ukraine, and across Europe, while also building the highly specific defence investment expertise and ecosystem in Estonia,” said SmartCap’s CEO Sille Pettai.
The €25 million fund contributes up to €1 million in pre-seed investments per company. At launch, it has already closed two deals and aims to complete four to five more within its first year.
“Darkstar’s team has a unique network, outstanding collaboration projects in Ukraine, and no restrictions to invest in single-use military solutions. This enables us to address the critical capability gaps and the growing demand for modern defence technologies in Estonia and Europe – including the weapon systems,” Pettai explained.
“Darkstar is focused on investing in companies whose products meet the demands of today’s warfare. We’re building the fastest path from battlefield to manufacturing. Europe needs defence technologies that are tested, trusted, and field-ready,” said Ragnar Sass, Partner at Darkstar. “This fund is not about future visions – it’s about what works under fire.”
The €100 million SmartCap Defence Fund aims to increase and diversify capital supply to the defence sector by investing in venture capital and private equity funds focused on military and dual-use technologies, as well as through direct investments in defence companies.