Estonian Defence Forces sign three-year defence tech partnership with VC Archangel

The Estonian Defence Forces and defence-focused venture fund Archangel have signed a three-year cooperation agreement aimed at tightening ties between the military, investors and defence startups in Estonia and the wider Baltic region.

The deal was signed at the ABCD Conference by Major Ivo Peets, who leads the EDF’s Force Transformation Command, and Nicholas Nelson, Archangel’s founder and managing partner. The pitch is straightforward: make it easier for defence technology companies to hear what the military actually needs, and make it easier for the military to see what’s becoming possible.

Archangel is a new fund, founded in 2025, and it says its backing goes to early-stage defence technology companies with capital, industry know-how and access to a network of defence and technology partners. Its focus is on British, Baltic and Nordic founders building for defence first, and its portfolio already spans autonomous systems, battlefield software, AI and secure operational infrastructure.

The fund’s investments include Kraken Technology Group, Labrys Technologies, Project Q, LYSK, UK-Ukrainian Offset Labs and Sky Spy. On the EDF side, the agreement is supposed to bring in the military’s view of defence needs and help create chances for companies to test and develop their systems in Estonia when that makes sense.

This is as much about wiring people together as it is about technology. The EDF wants better access to relevant tools and ideas; Archangel wants closer contact with end users as it looks for companies and opportunities in the Baltic defence tech sector. Those two goals line up neatly, which is probably why the partnership exists in the first place.