Approval has been given to allocate €40 million to Lithuania’s defence and security industry
The Minister of the Economy and Innovation, Edvinas Grikšas, and the Minister of National Defence, Robertas Kaunas, have approved the framework for the new venture capital instrument, 'MILInvest-2'. This measure will be implemented by the national development bank, ILTE. A call for proposals for 'MILInvest-2' managers will be announced shortly. The Ministry of the Economy and Innovation is providing €30 million for this initiative, while the Ministry of National Defence is contributing €10 million.
'It is important for us to grow the Lithuanian defence and security sector rapidly, so we must ensure that businesses in this sector, especially early-stage start-ups, have better access to venture capital. Thus, ‘MILInvest-2’ will enable companies to invest in developing new defence technology ideas under favourable conditions, develop advanced products, promote experimental development and innovation, and strengthen teams of innovators, thereby contributing to the creation of a modern Lithuanian defence and security industry”, says the Minister of the Economy and Innovation, Edvinas Grikšas.
'The country’s defence is a matter for all of us, so through concrete actions, we are providing businesses with opportunities to strengthen Lithuania’s security and economic resilience jointly. We have approved the “MILInvest-2” venture capital fund, worth a total of €40 million. The Lithuanian Armed Forces need what the modern battlefield demands, which means we must keep pace with innovation. The modernisation of the armed forces and the application of new technologies remain our priority in strengthening national defence,' says Minister of National Defence Robertas Kaunas.
Companies established in Lithuania, the EU, NATO countries or Ukraine will be eligible for 'MILInvest-2' investments. They must meet one essential condition: these businesses must provide benefits to Lithuania for at least one year, either by creating jobs or paying taxes.
The National Development Bank ILTE will soon announce a call for applications and select ‘MILInvest-2’ managers who will implement pre-acceleration and acceleration programmes and invest in promising companies in the defence and security sector.
Under the previous financial instrument, 'MILInvest', the state allocated €13.5 million to develop innovations in the defence and security sector, attracting more than €5 million in private funds.