Swedish Defense Fund Backs AI Startup Developing Drone Countermeasures

Sweden's Gungnir Capital, a defense-focused investment fund launched earlier this year, has made its first Swedish investment by backing Monava, an AI-driven startup developing technology to counter drone threats. The move comes amidst increasing operational challenges posed by drones in modern conflicts, with drones reportedly accounting for around 70% of losses in the Ukraine war. Monava's technology is noted for solving practical problems in field operations, aligning well with Gungnir Capital’s strategic focus on early-stage European defense technology companies specializing in autonomy, drones, software, and hardware.

Gungnir Capital was founded by former Gripen pilot Villman alongside industry veterans Olof Faxander and Einar Skerven. Monava marks the fund's third investment, following Finnish firm Kelluu and Danish company Acodyne, which develops autonomous cargo drones. The Finnish and Danish companies reflect Gungnir’s broader Nordic investment approach. Monava reported revenues of 1.1 million kronor and a modest profit of 25,000 kronor in 2025, illustrating solid early commercial traction. The investment comes in a highly competitive drone technology market, where notable companies, including the one founded by Spotify's Daniel Ek, have outperformed US-backed rivals in recent military trials.

Villman emphasized the importance of supporting companies that effectively address the tactical difficulties presented by drones, underpinning the fund’s strategic mission to enhance European defense capabilities through cutting-edge AI and software technologies. This investment highlights Sweden's growing role in advancing defense technology that integrates AI to manage emerging drone threats.

Monava’s collaboration with Gungnir Capital is expected to accelerate the development and deployment of AI-based counter-drone solutions, reflecting the critical need for innovation in drone defense amid evolving warfare dynamics. Gungnir’s focus on combining software, hardware, and AI reinforces Sweden's position at the forefront of defense tech innovation in Europe.