Dual

Greek investment funds increasingly look to local start-ups specializing in defense or dual-use (civilian-military) technologies.

A recent report by the Hellenic Center for Defense Innovation shows that 25% of Greek investment funds are active investors in the sector and another 25% plan to invest in the next 12-24 months. A further 25% have invested in selected start-ups in the past, while 17% say they follow developments but have no short-term investment plans at this point.

The start-ups are developing a variety of products, ranging from drones carrying magnetometers to detect minefields to undersea critical infrastructure monitoring systems. More than two-thirds of start-ups active in the defense sector develop technologies also designed for civilian use. It is true that in the current juncture full of geopolitical uncertainties, more companies in the civilian sector also use products initially designed for the defense sector.

The technologies most often developed by Greek start-ups are artificial intelligence, machine learning, robotics and autonomous systems, software platforms and data analysis. Prospective investors are attracted first by the quality and reputation of the start-up’s founders and the differentiation of the products, making them stand out from those of competitors and appealing to a specific target market.

A small but growing part of the start-ups are venturing abroad, penetrating markets with innovative products and attracting interest from international investors.

One such case is Velos Rotors, based in the city of Xylokastro, in the Peloponnese, which designs and builds dual-use, unmanned rotor vehicles. It has sold its vehicles to countries such as Japan and Malaysia.

Sotiria Technology develops systems for undersea monitoring of critical infrastructure, such as power and communications cables, while Delian Alliance Industries builds surveillance towers equipped with thermal cameras.