NATO membership woke up startups and investors: a 100 euro investment opportunity at a pitching event

On June 7, Pitch Finland DefSec will be organized in Riihimäki in connection with Erämessu MaanpuolustusAreena. In the pitching event, startup companies compete for an investment of 100 euros and get to present their innovations publicly for the first time to Finland's largest investors. This is the startup field's first pitching event on this scale focusing on the defense and security sector.

The event is being organized by FiBAN (Finnish Business Angels Network ry), Tesi (Suomen Teollisuussijoitus Oy), VTT (Technology research center VTT Oy), Business Finland, Riihimäki kaupunki, Define Finland, Digital Defense Ecosystem, FVCA – Pääomajoijjat ry and Kyberala ry. The event is part of EU funding Connect2Scale project and led by the city of Riihimäki The Define project.

Although hundreds of companies apply for funding through the Finnish Angel Investor Association FiBAN every year, it has been a challenge for companies in the defense and security sector to find funding in the past. Finland's NATO membership has increased investors' interest in the defense industry significantly. The eyes of international investors have also turned towards Finland.

"The idea of ​​the event and thereby mapping the number of startups came from discussions between some capital and angel investors. The desire to help is felt to be particularly important during this time. But no investor does this just out of patriotism, the defense and security sector will grow wildly over the next decade, and it's worth participating in that growth," confirms Tiina Laisi-Puheloinen, CEO of the Finnish Business Angels Network.

Riihimäki has strong defense expertise

The event is organized as part of the National Defense Arena in Riihimäki. Riihimäki already has a defense industry, and an even stronger defense business is being built in the city. The defense industry already employs more than 1000 people in the area: the Defense Forces Research Institute, the Management Systems Center and the Electronic Warfare Center, Sako and Millog operate in the area, among others.

"Cities build growth on strengths. Riihimäki has strong expertise in the security and defense sector, which we want to harness as the engine of Finland's economic growth. We are proud to host this significant new opening, which hopefully will continue in the future," says Riihimäki City Manager Jouni Eho.

Dual-use solutions for the whole society: satellite technologies and quantum computers

In the defense and security sectors, especially in dual use, a strong potential is seen, as dual use technology can be utilized in both civilian and defense use.

"There is now a strong demand for innovations in the defense sector, and the NATO Diana accelerator and two test centers that Finland has received will be available to start-up companies in the future. We hope that Finland will participate as much as possible in the 2024 Diana challenge competition. The Pitch Finland DefSec event is a great example of mapping Finnish start-up companies interested in the defense sector," says VTT Vice President Sauli Eloranta.

Dual-use and defense technologies are increasingly relevant for Tesi as well - Tesi is already a significant investor in companies such as Sisu Auto and Rauma Marine

"Our startup and growth phase investments include Iceye, IQM, Varjo Technologies and Dispelix, among others. We are currently figuring out how Tesi could be more actively involved in developing and internationalizing the ecosystem of the Finnish defense industry together with other players in the field," says Keith Bonnici, Tesi's investment director.

In addition to direct investments, Tesi invested EUR 2023 million in the NATO Innovation Fund in May 35. The total size of the fund is one billion euros.

"For Tesi, the pitching competition in June gives an excellent opportunity to get to know promising early-stage dual-use companies," adds Bonnici.

Applicants for the Pitch Finland DefSec competition are expected from Finland, the Baltics and the Nordic countries, and the startup application period ends on April 26. Angel and capital investors are ready to invest 100 euros in the best company of the competition.

At the MaanpūlustusAreena's public event, the CEO of the Nordic West Office, Risto EJ Penttilä, and a representative of the defense forces will discuss Finland's role in NATO and the technology competition between the great powers. The discussion continues in a panel discussion, which includes cybersecurity professor and MP Jarno Limnéll and Patria's CEO Esa Rautalinko. In addition, Olli Ruutu from the Ministry of Defense and representatives of business life will be speaking about innovations in the defense industry in the afternoon's invited guest seminar.

MaanpūlustusAreena and Pitch Finland DefSec are organized in connection with the International Wilderness Fair organized in Riihimäki.

Check out Erämessu's event pages and tickets.

Additional information:

Tiina Laisi-Puheloinen
CEO, Finnish Business Angels Network (FiBAN)
tel. 040 750 7417
tiina.laisi-puheloinen@fiban.org
Read also: Defense and security startups need funding channels for growth (The opinion piece is behind a paywall in Kauppalehti.)

Jouni Eho
City manager, Riihimäki city
tel. 044 767 6674
jouni.eho@riihimaki.fi
Read also on the website of the city of Riihimäki: Riihimäki is building a new kind of cooperation in the defense sectorä

Keith Bonnici
Investment Director, Tesi
tel. 040 179 9584
keith.bonnici@tesi.fi
Read also on Tesi's website: Finland joins NATO's billion-euro innovation fund

Sauli Eloranta
Vice president, VTT
tel. 040 580 8664
sauli.eloranta@vtt.fi
Read also on VTT's website: Finland's NATO business accelerator