Finnish startups raise record €1.5bn as defence technology attracts investors
Helsinki hub’s companies capture outsized share of national funding despite economic headwinds.
Text by Martti Asikainen, 16.3.2026 | Photo by Adobe Stock Photos
Finnish startups raised over €1.5bn in 2025, reaching record funding levels and positioning Finland amongst Europe’s top countries when measured relative to population.
The figures, reported by the Finnish Venture Capital Association in November and confirmed by Helsinki startup hub Maria 01’s latest impact report, represent a significant milestone for Finland’s technology sector.
Current and former members of the Maria 01 community raised €337M last year, more than triple the €102M raised in 2024—a 230% year-on-year increase. Despite representing only 14% of Finland’s startup ecosystem, Maria 01 companies captured 22% of all funding raised nationally.
“We are no longer talking about a single 100-million-euro funding round coming to Finland,” Sarita Runeberg, CEO of Maria 01, told Yle. “We are beginning to see larger rounds across a fairly broad range of industries.”
Major funding rounds
Three companies secured particularly large investments. Unmanned systems company Nest AI raised €100M backed by Nokia and state-owned investment company Tesi. Project management software firm Linear secured €72.7M, achieving a $1.25bn valuation and becoming Maria 01’s first “unicorn”—a company valued above $1bn. Verda raised €55M.
Paula Miettinen, Director of Business Services at the City of Helsinki, characterised the results as evidence of growing investor confidence. “Record funding demonstrates the increasing attractiveness of Finnish and Helsinki startups from both domestic and international investors’ perspectives,” she said in the city’s announcement.
Despite record funding levels, the number of financing rounds declined. Startups at Maria 01 secured capital in 27 rounds last year, compared with 37 the previous year.
The shift reflects ecosystem maturation, with companies progressing from early-stage rounds to larger, later-stage investments. Foreign investors drove much of this growth.
Defence technology emerges
Defence technology has become a significant draw for investors. Finnish startups captured 85% of all Nordic funding directed towards defence and dual-use technologies in 2025, totalling $410M, according to Danske Bank research.
Dual-use technologies—those with both civilian and defence applications such as drones—have attracted particular attention following regional security developments.
“Just a few years ago, defence was not even listed amongst our sectors,” Runeberg told Yle. “Now it has become a significant part of our companies’ activities.”
Helsinki's growing dominance
Helsinki’s position as Finland’s startup centre has strengthened markedly. The city now hosts over 40% of all Finnish startups, according to research published in January.
The same study found startup employment impact in Helsinki has grown nearly 20-fold since 2005, underscoring the sector’s economic significance.
Maria 01, celebrating its tenth anniversary, operates from a converted hospital building in central Helsinki. The non-profit organisation, owned by Startup Foundation, Helsinki Business Hub, and the City of Helsinki, now houses approximately 2,000 members including 230 startups, 28 service partners, and 17 investor communities.
Ecosystem questions
The funding surge comes during what Runeberg characterised as economically challenging times, which she suggested historically produce successful companies.
However, the concentration of funding raises questions about ecosystem breadth. Whilst established companies secure larger rounds, the decline in total deal numbers suggests early-stage funding may be tightening.
The disproportionate share captured by Maria 01 companies—22% of national funding from 14% of startups—indicates geographic concentration in Helsinki, potentially limiting opportunities for companies based elsewhere in Finland.
Foreign investor participation underscores Finland’s growing international profile in European technology markets, whilst the concentration of Nordic defence funding in Finnish companies reflects both geopolitical factors and technical capabilities developed in the sector.
