Estonia creating state-backed fund to directly invest into the equity of companies developing defense technologies
Estonia creating state-backed fund to directly invest into the equity of companies developing defense technologies
A €50 million fund that will invest in defense-related or dual-use technologies will be set up after the government backed a proposal by Prime Minister Kaja Kallas (Reform). It will launch this year.
The €50 million fund will mainly invest in companies operating in Estonia to alleviate excessive risks so the companies are attractive for private capital.
The detailed terms and conditions of the fund will be developed by the Ministry of Economic Affairs and Communications and the government plans to discuss them in July.
Prime Minister Kaja Kallas said this will strengthen Estonia's security and help boost the economy. The fund will help Estonian defense industry companies to develop and bring their products to the market.
"Estonia has a very highly developed technology sector, but there is a market failure in the use of this capacity to increase our national security. The state can help with seed funding here," she said, adding it will also create jobs.
that's actually indirectly, because the money goes through the fund instead of directly from government to the defense companies.
Makes sense, but what do these companies produce? Seems to me that 50 million (especially when spread over multiple recipients) doesn't really go that far in the defense sector. At least if we are talking heavy equipment manufacturing or anything with complex technology.
I guess at a scale where this amount matters we are talking more basic products or something like small drones?