Defense Tech Investment Boldly Shifts Toward Military-Only Applications

From Dual-Use to Focused Military Solutions

Once an inaccessible niche for venture capital, defense technology is now at the forefront of strategic investment. While much of the sector has historically required a dual-use angle—where military innovations must also address civilian needs—the landscape is changing. In a decisive divergence, Estonian venture firm Darkstar is channeling funds solely into military applications, aiming to rearm Europe with combat-proven innovations emerging directly from Ukraine.

Strategic Partnerships And Hands-On Support

At the helm of this transformation is Ragnar Sass, Darkstar cofounder and general partner, who stresses the long-term criticality of these investments. Darkstar not only provides capital but also assists startups in navigating complex regulatory environments, setting up compliant entities in NATO countries such as Estonia. This hands-on approach ensures that emerging defense technologies are fully operational for the challenging demands of European military procurement.

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Targeted Fundraising and Diverse Portfolio

With a fundraising target of €25 million over the next six to 12 months, Darkstar is focused on early-stage companies, particularly in pre-seed and seed rounds, typically deploying between €500,000 to €1 million per check. Early investments include Ukrainian-Estonian startup FarSight Vision, known for geospatial analytics and 3D mapping for drones, as well as Deftak, a firm innovating in drone ammunition. These strategic bets underscore Darkstar’s commitment to operationalizing technologies that have already been battle-tested in Ukraine.

A Veteran’s Shift to Defense

Sass, a key figure in the Estonian startup ecosystem with a history of successful exits including Pipedrive, recounts his hesitant yet resolute pivot toward defense tech. His conversion was catalyzed by his hands-on experience during the Ukraine conflict, culminating in his first defense investment in the Estonian drone startup, Krattworks. This move marked a turning point, transitioning him from an angel investor to a dedicated advocate for defense sector innovation.

Pan-European Vision Amid Growing Geopolitical Tensions

Driven by the geopolitical imperatives of proximity to Russia and a legacy influenced by the Soviet era, Darkstar’s initiatives reflect a pan-European outlook. Alongside partners from Estonia, Germany, and Ukraine, the firm is positioning itself as a key player in developing autonomous systems, air defense, electromagnetic warfare, cybersecurity, and advanced communications. This expansive portfolio is likely to attract interest from established prime contractors and stimulate the evolution of standalone startups capable of generating significant revenue.

Learning From The Frontlines

Sass’s experiences in Ukraine, where he has engaged with over 100 unit commanders and witnessed firsthand the rapid evolution of military technology, inform Darkstar’s investment criteria and hands-on mentorship through military bootcamps. These events, which will soon be held in Kyiv, offer startups invaluable feedback, field-testing opportunities, and combat validation—critical elements for adapting solutions that meet the rigors of real-world defense challenges.

The Future Of Defense Innovation

While the broader market grapples with the balance between commercial and military applications, Darkstar’s singular focus on military tech highlights a discernible shift. As celebrated companies like Anduril and Helsing demonstrate the potential for venture-scale returns in defense tech, the message is clear: innovation driven by warfare not only meets urgent defense demands, but also paves the way for groundbreaking commercial opportunities in a sector poised for exponential growth.

Sass’s cautionary note underscores this momentum: with Russia’s war economy driving rapid advancements, the tech community must mobilize to counter emerging threats. In this high-stakes arena, expertise, agility, and strategic investment are the new watchwords for a continent poised on the brink of a defense revolution.

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Bank of Cyprus Upgrade Signals Fresh Optimism For Greek And Cypriot Banks

by THEFUTURE.TEAM

June 26, 2026

Regional Banks Enter A More Favorable Cycle

Bank of Cyprus and Eurobank are well positioned to benefit from a renewed re-rating of Greek and Cypriot bank stocks, according to Cyprus-based investment firm Roemer Capital, which upgraded Bank of Cyprus to a buy rating and reaffirmed its positive view on Eurobank.

The firm cited easing geopolitical tensions, resilient economic growth in Greece and Cyprus, lower funding costs and Greece’s expected transition to developed-market status as the main factors supporting the sector.

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Roemer Capital also lowered its cost of equity assumptions, updated its forecasts following first-quarter 2026 results and extended its valuation horizon to the end of 2027, raising target prices across its banking coverage.

Bank Of Cyprus Gets The Largest Upgrade

Bank of Cyprus received the biggest revision, with Roemer Capital upgrading the stock from hold to buy and setting a target price of €11.10, implying potential total upside of 27%.

The firm highlighted the bank’s strong capital generation, profitability and projected 100% dividend payout, describing it as the strongest capital-return story among the banks under coverage. Roemer Capital maintained its buy rating on Eurobank, assigning a target price of €4.90 and forecasting potential upside of 28%. The report said the bank is well placed to benefit from loan growth, improving operating performance and merger-and-acquisition synergies.

National Bank of Greece and Piraeus Bank also retained buy ratings, with expected returns ranging from 25% to 36%. Optima Bank was upgraded to buy, while Alpha Bank remained at hold on valuation grounds.

Why Growth Still Sets The Region Apart

According to Roemer Capital, Greek and Cypriot banks continue to benefit from stronger economic fundamentals than many western European peers. The report pointed to faster economic growth, healthier balance sheets, low levels of non-performing exposures, capital ratios approaching 20% and strong customer deposit bases.

Analysts expect performing loans across the sector to grow at a compound annual rate of 6% to 8% through 2028, supported by private investment, digitalisation, green manufacturing, supply-chain expansion and a gradual recovery in household lending.

The report also said the conclusion of lending under the EU Recovery and Resilience Facility is unlikely to materially affect credit growth, as banks have already shifted back towards traditional commercial lending. Roemer Capital expects Euribor to remain between 2.2% and 2.5%, a level it believes should support both lending activity and net interest margins.

Geopolitics, Valuation And Market Structure Support The Case

The report said improving geopolitical conditions have strengthened the investment outlook, noting that Brent crude prices have largely returned to pre-war levels while Greek government bond yields have stabilised at around 3.5%. Although geopolitical risks remain, Roemer Capital believes the likelihood of a major inflationary shock or significant pressure on bank profitability has eased.

Another important catalyst identified by the firm is Greece’s expected promotion to developed-market status by FTSE Russell, STOXX and MSCI over the coming months.

According to the report, the reclassification should improve liquidity and attract a broader base of international investors. Roemer Capital also said Euronext’s acquisition of the Athens Exchange is expected to strengthen market infrastructure and increase international visibility, particularly for Bank of Cyprus and Optima Bank.

The firm noted that Bank of Cyprus has already benefited from its Athens listing, with average daily trading value increasing from less than €400,000 before its September 2024 move to nearly €6 million afterwards.

Economic Momentum Remains A Core Tailwind

Roemer Capital said both Greece and Cyprus have moved beyond post-crisis recovery and are now supported by private-sector-led growth. For Cyprus, the report highlighted recent tax reform and efforts to simplify the legal and regulatory framework, while also noting that limited foreign banking competition continues to support domestic lenders.

Overall, Roemer Capital expects Greek and Cypriot banks to remain well-positioned for profitable loan growth over the coming years.

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