Lithuania's Defense Tech Fund: A Sovereign VC Leader

Europe's Growing Focus on Defense Investment

Across Europe, a heightened awareness of security needs is driving increased investment in defense capabilities, a trend mirrored by European venture capital firms. Lithuania, however, has been proactively prioritizing military spending, allocating 5% to 6% of its GDP to defense – and supporting defense-focused startups – well before the third anniversary of Russia’s invasion of Ukraine.

Coinvest Capital: A Pioneer in Defense Tech Funding

Coinvest Capital, Lithuania’s sovereign VC fund, has emerged as a leading investor in the defense technology sector. It distinguishes itself by not mandating civilian applications for its investments. “We were the first in the region to be fully authorized to make defense investments, beginning in March 2023,” stated Viktorija Trimbel, the fund’s managing partner since February 2023.

A Relentless Advocate for Innovation

Despite her stature, Viktorija Trimbel compensates for her height with considerable energy and unwavering dedication. She is a strong proponent of fostering innovation within defense technology to bolster European security.

Investments in Key Technologies

Unmanned Defense Systems (UDS), a Vilnius-based company specializing in optimizing the “kill chain,” has received the largest investment from Coinvest Capital in this area. The fund has deployed approximately €6.8 million ($7.37 million) into aerospace, defense, and dual-use startups since 2023, according to Trimbel.

Per Capita Investment

While this amount may seem modest compared to the billion-dollar investments flowing into U.S. defense tech companies, its significance is amplified when considered on a per capita basis, a point frequently emphasized within Lithuania’s small population of 2.89 million.

Co-Investment and Profit-Sharing

Coinvest Capital actively pursues a co-investment strategy, partnering with business angels and other VCs. For early-stage investments, the fund employs a capped profit-sharing structure, a model that Trimbel particularly champions.

Strengthening the Startup Ecosystem

As a board member of the Lithuanian Business Angel Network (LitBAN), now comprising 324 members, Trimbel is committed to attracting more “smart money” into the market. Although Lithuania’s startup ecosystem has grown 39-fold in a decade, the country still seeks an exit comparable to Skype’s impact on Estonia.

Successful Exits and Ecosystem Growth

Liquidity events, such as Vinted’s secondary sale, have had a positive ripple effect. Trimbel believes Coinvest can accelerate the multiplication of these investments. The fund’s exit from Interactio after just 18 months resulted in boosted returns for angel investors, increasing from 9x to 34x. “This success played a role in the rapid expansion of the business angel ecosystem,” Trimbel noted.

Collaboration and Funding Landscape

Coinvest’s sole limited partner, Lithuania’s national development bank, has also made substantial capital injections into other local VCs, including BSV Ventures and ScaleWolf, and contributed to the NATO Innovation Fund (NIF), as Trimbel highlighted on LinkedIn.

European Governments Embrace Defense Investment

Trimbel welcomes the growing trend of European governments prioritizing investment in “deterrence and defense to enhance the competitiveness and resilience of European nations.”

A Personal Connection to Security

Lithuania is acutely aware of this need, often on a deeply personal level. “I witnessed Russian tanks killing people when I was 18. For us, this isn’t a theoretical issue,” Trimbel shared, referencing the 1991 January Events, when Soviet forces attempted to suppress Lithuania’s independence movement.

A History of Occupation and Resilience

The trauma of Soviet rule is deeply embedded in Lithuania’s collective memory, extending far beyond 1991. “Every family has experienced occupation, deportations, or killings in some way. We don’t require convincing about the importance of investing in defense,” Trimbel explained.

Solidarity and Support for Ukraine

The war in Ukraine has renewed a sense of urgency and solidarity. The 2025 Radarom campaign, a public fundraising initiative for Ukraine, raised over €5.6 million for drones and anti-drone systems, including support for UDS. Trimbel actively endorsed the campaign, urging continued support for Ukraine “until victory.”

A Nation's Resolve

Like most Lithuanians, Trimbel vividly remembers February 24, 2022, the day Russia launched its full-scale invasion of Ukraine. She was traveling with her daughters and considered returning home as war loomed, until her youngest daughter reminded her of their cat.

A Determined Spirit

Regardless of the cat, Trimbel likely would have returned to Lithuania. Her first name, Viktorija – meaning Victory – reflects her resolute personality. She describes a circle of friends who prioritize shooting range practice over traditional social activities.

Mobilizing Society and Volunteering

Recognizing that individuals react differently to crises, Trimbel encouraged practical action in the wake of the war, promoting participation in volunteering initiatives that have gained momentum across Lithuania.

The Lithuanian Riflemen’s Union

The Lithuanian Riflemen’s Union (LRU), a government-backed nonprofit, is a prominent organization in this effort. Dedicated to Lithuania’s defense, the LRU’s activities extend beyond military training, including co-organizing the Fire Shield hackathon with Coinvest and others.

Collaboration and National Security

Trimbel is pictured with Lieutenant Colonel Linas Idzelis, commander of the LRU, and retired Lt. Col. Valerijus Šerelis, a former squadron commander of special operations forces that supported NATO allies in Afghanistan after 9/11.

Lessons from the Pandemic

The LRU also played a role in civilian response during the COVID-19 pandemic, as did Trimbel, who contributed to a helmet-based ventilation protection project. “COVID served as a valuable exercise in mobilizing society during times of threat,” she stated, emphasizing that the current threat is very real.

Beyond Defense: A Holistic Approach

Despite her focus on defense tech, Trimbel also supports ventures in other areas. She enthusiastically discussed Walk15, a portfolio startup promoting outdoor activity and fitness through dog walks.

A Clear Priority

However, as she recently posted on LinkedIn, “no other investment returns will matter if Ukraine does not receive sufficient support and Europe is further invaded.” Consistent with her name and character, Trimbel remains unwavering in her commitment to preventing this outcome.