Lithuania's defense sector has rapidly expanded from about five companies to nearly 200 in six years, driven by focused government-backed venture capital investment modeled after Israeli defense innovation strategies. ScaleWolf, a venture fund with government as an active LP, has supported early-stage companies through staged funding with hands-on involvement. Notable companies include Granta Autonomy, which produces a low-cost, jam-resistant autonomous loitering munition; Pulsetto, which develops nerve-stimulation devices to aid soldier recovery; Brolis Defence, a profitable firm producing laser aiming devices shipped to over 30 countries with a fully European supply chain and free from ITAR and Chinese components; UDS, developing a kill chain combining surveillance, loitering munitions, and swarm command & control that integrates with existing battle management systems; and NanoAvionics, a satellite company offering cost-effective earth observation and signals intelligence capabilities, now part of Kongsberg. The state development bank and Coinvest Capital provide strategic long-term funding with profit-sharing models favoring startups and university spin-offs. Lithuania’s ecosystem value in 2025 reached €16.4 billion, growing nearly 6 times in five years and outpacing Central and Eastern European averages. Defense entrepreneurs emphasize the critical need for sustained European defense spending to maintain momentum and regard defense as part of Europe's survival strategy.

Lithuania's defense sector has rapidly expanded from about five companies to nearly 200 in six years, driven by focused government-backed venture capital investment modeled after Israeli defense innovation strategies. ScaleWolf, a venture fund with government as an active LP, has supported early-stage companies through staged funding with hands-on involvement. Notable companies include Granta Autonomy, which produces a low-cost, jam-resistant autonomous loitering munition; Pulsetto, which develops nerve-stimulation devices to aid soldier recovery; Brolis Defence, a profitable firm producing laser aiming devices shipped to over 30 countries with a fully European supply chain and free from ITAR and Chinese components; UDS, developing a kill chain combining surveillance, loitering munitions, and swarm command & control that integrates with existing battle management systems; and NanoAvionics, a satellite company offering cost-effective earth observation and signals intelligence capabilities, now part of Kongsberg. The state development bank and Coinvest Capital provide strategic long-term funding with profit-sharing models favoring startups and university spin-offs. Lithuania’s ecosystem value in 2025 reached €16.4 billion, growing nearly 6 times in five years and outpacing Central and Eastern European averages. Defense entrepreneurs emphasize the critical need for sustained European defense spending to maintain momentum and regard defense as part of Europe's survival strategy.