SmartCap Defence Fund
Estonian state-owned defense venture fund managed by SmartCap, a subsidiary of Foundation KredEx, deploying Estonia's €100M government Defence Fund; co-led Farsight Vision's €7.2M seed round.
SmartCap Defence Fund is a €100 million Estonian state fund, managed by SmartCap (a subsidiary of Foundation KredEx), investing to develop the Estonian defence industry and advance innovative defence and security capabilities. It invests both directly in defence companies (up to €10M per company, seed through growth stage) and as a cornerstone/fund-of-funds investor (€5–20M commitments) in venture and private-equity funds focused on military and dual-use technologies, requiring at least 30% co-investment from independent private investors on the same terms. Legally established in November 2024 and publicly launched January 21, 2025 (doubled from an initially proposed €50M), the fund's investments include Farsight Vision, Darkstar Ventures Fund I, and Frankenburg Technologies.
Overview
- Firm
- SmartCap (Foundation KredEx)
- Headquarters
- Tallinn, Estonia
- Founded
- 2024
- AUM
- €100M (Estonia's state Defence Fund; legally established November 2024, doubled from an initially proposed €50M, publicly launched January 2025)
- Stages
- Seed, Growth
- Thesis
- SmartCap Defence Fund's principal objective is to develop the Estonian defence industry and advance innovative defence and security capabilities to address the growing global demand for new defence and security solutions.
- ee.linkedin.com/company/smartcap
- Website
- smartcap.ee
Portfolio companies1
Frequently asked
- What is SmartCap Defence Fund?
- SmartCap Defence Fund's principal objective is to develop the Estonian defence industry and advance innovative defence and security capabilities to address the growing global demand for new defence and security solutions.
- How much does SmartCap Defence Fund manage?
- SmartCap Defence Fund manages €100M (Estonia's state Defence Fund; legally established November 2024, doubled from an initially proposed €50M, publicly launched January 2025) in assets, and was founded in 2024.
- What stages does SmartCap Defence Fund invest at?
- SmartCap Defence Fund invests at Seed, Growth.
Sources & citations2
Each claim links to its underlying source. Confidence reflects how directly the source supports the claim.
- 1
SmartCap Defence Fund is a €100 million fund publicly launched January 21, 2025 to develop Estonia's defence industry, doubled from an initially proposed €50M.
Estonian Ministry of Economic Affairs and Communications (MKM): Estonia Launches €100M Defence FundVerified2025-01-21 - 2
SmartCap Defence Fund invests directly in companies (up to €10M) and in funds focused on military/dual-use tech (€5-20M commitments), requiring at least 30% independent private co-investment.
SmartCap: Defence FundVerified2026-08-09