Lithuania is taking a proactive approach to defense, and its venture capital scene is following suit. Coinvest Capital, the country's sovereign VC fund, has been at the forefront of defense tech investments, committing 5-6% of its GDP to military spending and funding startups in the sector. This move is particularly significant given the country's painful history of Soviet occupation and its current concerns about Russian aggression.

Coinvest Capital's managing partner, Viktorija Trimbel, has been instrumental in driving this effort. Since February 2023, she has been advocating for innovation in defense tech to strengthen Europe's security. The fund has invested approximately €6.8 million (around $7.37 million) in aerospace, defense, and dual-use startups since 2023, with Unmanned Defense Systems (UDS) receiving its largest investment in the domain.

While the amount may seem modest compared to the billion-dollar rounds flooding into U.S. defense tech companies, it's essential to consider it in the context of Lithuania's small population of 2.89 million inhabitants. Coinvest Capital's co-creation approach, which involves co-investing with business angels and other VCs, has also been successful in attracting smart money into the market.

Trimbel's passion for defense tech is deeply personal, driven by her experiences during the 1991 January Events, when the Soviet military attempted to suppress Lithuania's independence movement. She believes that investing in defense is crucial for European countries to maintain their competitiveness and resilience. This sentiment is echoed by governments across Europe, which are increasingly recognizing the need to invest in deterrence and defense.

Coinvest Capital's sole limited partner, Lithuania's national development bank, has also provided significant capital injections to other local VCs, including BSV Ventures and ScaleWolf, as well as the Lithuanian contribution to the NATO Innovation Fund (NIF). This collective effort is expected to have a multiplier effect on the country's startup ecosystem, which has already seen a 39-fold increase in value over the past decade.

Beyond defense tech, Trimbel is also enthusiastic about other portfolio startups, such as Walk15, which is promoting physical activity through outdoor hikes with dogs. However, she remains resolute in her commitment to defense investments, recognizing that the threat of Russian aggression is very real. As she wrote in a recent LinkedIn post, "no other investment returns will matter if Ukraine will not receive sufficient support from allies and Europe will be invaded further."

The urgency and solidarity surrounding Ukraine's situation are palpable, with the 2025 edition of Radarom, a public fundraising campaign, collecting over €5.6 million for drones and anti-drone systems. Trimbel has endorsed the campaign, urging support for Ukraine "NOW … and any other day till victory."

In conclusion, Lithuania's proactive approach to defense, led by Coinvest Capital, is a beacon of hope for European countries seeking to strengthen their security and competitiveness. As Trimbel's relentless personality and commitment to defense tech investments demonstrate, the country is determined to learn from its past and secure a safer future for its citizens.