Estonia’s defense industry keeps booming. As reported by Invest in Estonia, the government has approved the establishment of a €50 million fund this year. The fund will invest in companies developing defense- or dual-use technologies through direct equity investments.

The fund will primarily invest in Estonian companies to make them more appealing to private investors. The Ministry of Economic Affairs and Communications will finalize the its terms and conditions, which will be reviewed by the government in July.

The goal is to enhance Estonia’s security and promote economic growth by supporting local defense industry companies in developing and launching their products. The Minister of Economic Affairs and Information Technology reportedly said this would ideally help doubling the volume of the Estonian economy by 2035.

Last year, NATO’s DIANA innovation accelerator initiated a call for private sector companies to propose technical solutions for defense-related challenges. Among the five new innovation accelerators, one is opened in Estonia and is managed by the Tehnopol Startup Incubator in collaboration with the Sparkup Tartu Science Park and Startup Wise Guys business accelerator. Nine companies are currently refining their solutions there.