I Love Lund invests SEK 520k in Valkyr Defense Systems' seed round

What's the deal? I Love LundDealroom has a profile for this one. Try Dealroom →, a Swedish investment firm, is putting SEK 520,000 into Valkyr Defense Systems, a Lund-based startup that develops autonomous anti-drone technology for short-range, last-line defence. The seed round totals just over SEK 4M and marks Valkyr's first external funding.

I Love Lund becomes one of Valkyr's larger external shareholders, holding just under 1% of outstanding shares after the capital injection. The round was directed at new shareholders.

Why now? Drone warfare has surged to the top of defence agendas worldwide, driven by conflicts in Ukraine and the Middle East. Governments and militaries are scrambling for counter-drone solutions, creating a fast-growing market for startups like Valkyr.

Sweden's defence spending is also climbing after the country joined NATO in 2024, opening doors for homegrown defence tech firms to attract both domestic and allied interest.

What could go wrong? Defence startups face long sales cycles, heavy regulatory requirements, and fierce competition from established contractors. At SEK 4M, Valkyr is still very early-stage and will likely need significantly more capital to move from development to deployment.

The signal: European defence tech is having a moment. A wave of venture capital is flowing into the sector as the continent rethinks its security posture. Small, specialised startups tackling specific battlefield problems — like drone defence — are attracting investor attention that would have been rare just a few years ago. Valkyr's seed round is modest, but it reflects a broader shift: defence is no longer a no-go zone for civilian investors in Europe.

Read more: MarketScreener