Move over Fintech... MilTech is here!

Several Investment Promotion Agencies in the CEE and Baltic regions are promoting their growing Military Tech sectors, and this opens up vast opportunities across the region. 

Just last week, Invest Lithuania's post about its priorities in defense are emblematic of the "focus and funding" that is increasingly on Defense. Also last week, in Tallinn, at Latitude59, Estonia's Minister of Defense was a "key" keynote speaker and emphasized the sector's immediate strategic importance.

Similar voices are heard in Poland and Romania and Bulgaria.


Here highlights from Invest Lithuania:
As a NATO member on the alliance’s eastern flank, the defence industry of Lithuania has become a national priority with substantial government backing and strategic importance. This focused approach has created significant opportunities for international collaboration and investment in the country’s rapidly evolving defence sector.

Strategic location and NATO roleLithuania’s geographical position makes it a key player in European defence cooperation. Strategically positioned within the European Union and on NATO’s eastern border, the country provides secure access to crucial European markets while serving as a stable gateway for defence operations across the continent.
The country currently hosts over 2,500 Allied soldiers deployed on rotation basis, including NATO Enhanced Forward Presence forces, NATO Force Integration Units, U.S. rotational battalions, and a German brigade planned for full deployment by 2027. This military presence, combined with regular international exercises, highlights Lithuania’s commitment to collective security.
Government support and investment incentivesLithuania’s defence industry benefits from streamlined processes designed to accelerate investment and development. Recent legal provisions, titled the Green Corridor, have simplified territorial planning, land procurement, and construction procedures for large-scale investment projects, shortening the setup period for manufacturing facilities from two years to just six months.
The Green Corridor initiative also offers attractive fiscal policies for companies considering military industry investment in Lithuania, including a 0% corporate income tax rate for 20 years. Additionally, companies in Lithuania benefit from efficient export procedures, with export licenses typically processed in 25 work days or less.
Defence funding and support programsLithuania has demonstrated its commitment to defence sector investment through substantial funding initiatives. In 2024, over 45% of the National Defence Budget – nearly €1 billion – was dedicated to modernizing the Lithuanian Armed Forces, with approximately €200 million reserved for drone procurement over the next six years.
The recently launched €300 million “Vytis” initiative aims to strengthen the defence industry in Lithuania by promoting innovation and boosting global competitiveness. Led by the Ministry of the Economy and Innovation, this program addresses key industry challenges including limited early-stage funding and regulatory barriers. With targets to triple defence exports and generate over €1 billion in sector value by 2030, “Vytis” provides comprehensive support from R&D through market entry, creating significant opportunities for companies developing battle-ready innovations.
Complementing this is ScaleWolf, a first-of-its-kind venture capital fund and allied technology accelerator focused on dual-use technologies. With €13.5 million in funding, this initiative accelerates advancements in Baltic defence innovation technologies, supporting companies developing solutions aligned with NATO’s emerging and disruptive technologies priorities.

Full Story here.