Ragnar Sass, the Estonian tech entrepreneur behind Pipedrive and the Lift99 startup hub, has announced the launch of Darkstar, a pan-European defence fund that aims to inject wartime urgency – and battlefield pragmatism – into the continent’s defence technology sector.
Described by Sass as “a defence tech ecosystem builder, not a traditional VC,” Darkstar is the first fund of its kind in Europe focused exclusively on real military systems, including weapons technologies. With backing from over 30 European investors and founders – including SmartCap, Estonia’s sovereign venture capital fund – the initiative has already raised €15 million at first close.
A tech founder goes to war
Sass, who became actively involved in Ukraine following Russia’s 2022 invasion, has channelled his frustration with European bureaucracy and peacetime mindsets into a venture that he says is long overdue.
“Let’s be super clear,” Sass wrote in the launch statement. “Even the strongest word or coolest presentation has never stopped ballistic missiles or FPVs (drones piloted remotely using a live video feed – editor). It’s time only for real action by Europe. And we have to move fast.”
Darkstar’s mission is uncompromising: to invest in combat-proven products and teams that can help Ukraine win – and more broadly, to “re-arm Europe.” Unlike many European investors who hedge between dual-use and civilian applications, Sass’s team embraces technologies made specifically for the battlefield.
Weapons, not words
So far, Darkstar has made two investments and plans to complete another four or five by year-end. Each startup backed by the fund undergoes real-world combat testing through bootcamps – five-day innovation accelerators held in Ukraine in partnership with elite military units.
Each event brings together a dozen or more defence tech firms developing solutions in areas such as counter-UAV systems, autonomous navigation, laser-guided munitions, and thermal imaging. Previous camps have led to on-the-spot integrations with military units and immediate battlefield deployments.
“We’re actively bridging the gap between modern warfare challenges and the technologies needed to address them,” Sass said. “Darkstar is not just investing in defence tech – we’re redefining its future.”
The fund is run by a coalition of unicorn founders, veterans, and defence engineers, with a deep bench of technical, legal and financial experts. Darkstar also partners with banks and government institutions to smooth procurement and capital flows – key barriers that Sass says must be urgently reformed.
Among its longer-term goals is reshaping European defence procurement – a system widely criticised for being too slow, bureaucratic and unfit for wartime demands. Sass and his partners advocate for faster, leaner models inspired by Ukraine’s own agile wartime procurement processes.
Ethical lines, strategic realism
While unapologetically focused on military-grade technologies – from remote weapon systems to loitering munitions – Darkstar stresses compliance with international humanitarian law. All funded systems, the coalition says, are guided by “robust ethical frameworks,” including human oversight and adherence to the Geneva Conventions.
Sass is clear-eyed about the stakes. “We invest in military technologies because we believe our national security – and our militaries – need innovation that addresses battlefield realities. Europe must act like it’s already at war.”
At the heart of Darkstar’s strategy is a sense of existential urgency. Sass and his backers believe the European tech community can no longer afford to stand on the sidelines.
“Startups need real combat testing,” he said. “Europe needs tech that is tested, trusted and field-ready – technology that works under fire.”
With funding of up to €1 million per company, and a fast-track path to deployment through its bootcamps, Darkstar may well become a model for how European venture capital retools for an age of geopolitical volatility.
Or, as Sass puts it bluntly: “This isn’t theory. This is survival.”
