Startups call for better dialogue with end users

In April 2026, the second edition of Defence Expo Sweden was held. At Magasin 9 in Frihamnen, Stockholm (Sweden's capital), key players from the defence sector gathered. Participants ranged from startups and established companies to government agencies such as the Swedish Armed Forces (Försvarsmakten) and the Swedish Defence Materiel Administration (FMV). NDS took the pulse of the Swedish innovation climate by interviewing two of the startups present at the event.

Hans Werner is CEO and founder of Skygaard, a Swedish defence tech company focused on developing solutions for detecting, identifying, and managing threats from unauthorised drones in low-altitude airspace. The company's technology is built on a sensor-agnostic platform that can be integrated with various types of systems. The company works closely with customers in defence, security, and critical infrastructure, with the ambition of rapidly developing and implementing solutions based on current needs and threat assessments.

To keep pace with the rapid innovation cycle, the company has actively sought out several development environments. An important part of this has been the collaboration with KTH Innovation (the innovation arm of the Royal Institute of Technology in Stockholm), where the company participates in programmes linked to robotics, automation, and drone technology, among other areas.

"It is a very exciting innovation process, but it takes place at a more traditional pace," he says.

In parallel, the company is also engaged in the Ukrainian Brave1 programme. By combining these two environments, he argues that the company receives both rapid and longer-term feedback, while also being able to contribute to and benefit from developments in both systems.

What is it like to operate as a startup in today's business climate?

"In the sector we operate in, being a startup is an advantage right now. We see ourselves as challengers and can move faster than more traditional players. At the same time, we constantly strive to increase our pace, adapt our business models, and introduce new commercial technology, so-called dual-use technology," he says.

The company works with both military and civilian customers, which according to the CEO is a deliberate strategy. Within the military sector, the Swedish Defence Materiel Administration (FMV) is a key customer, but it can be difficult for startups to reach that level.

"From a military perspective, there is often one primary customer you need to succeed with. If you fail to do so, you risk burning through resources quickly, and it can also be difficult to get all the way there," he says.

At the same time, the civilian market, particularly within critical infrastructure, opens up more business opportunities and a broader customer base. By combining these segments, the company can both spread risk and strengthen its development.

"It is important not to be dependent on just one side. There is also an opportunity to benchmark yourself and demonstrate what the technology is actually capable of," he says.

Werner raises the perspective that experience from one sector can also strengthen credibility in the other. Having the Swedish Defence Materiel Administration (FMV) as a customer serves as a quality stamp in relation to private players, while assignments within critical infrastructure can generate interest from both the Swedish Armed Forces and other public procurers.

Do you encounter any challenges as a startup?

"The regulatory frameworks can be difficult to navigate, and it is not always clear when they apply or what they cover. At the same time, lead times are long. As a startup, particularly in the dual-use space, we need to move quickly. Waiting eight to twelve weeks for a preliminary decision does not work for us. By then, the deal is often already lost," he says.

He also draws comparisons with how processes work in Ukraine, highlighting the country's procurement system as more dynamic.

"Compared to Ukraine, for example, the climate is different. There, needs, funding, and suppliers are matched more directly," says Hans Werner.

Mikael Stern is CEO and co-founder of the Swedish technology company I-CONIC Vision AB. The company was founded in 2019, is headquartered in Stockholm (Sweden's capital), and has two primary applications. One is GPS-free drone navigation and the other is 3D mapping, which their customers can ultimately use for their own analysis, surveillance, and visualisation.

Stern explains that the expo provides an opportunity to meet many relevant players, including potential customers.

"The end users of our technology are armed forces and emergency services, but they are not our direct customers. Our customers are instead drone manufacturers or defence companies that integrate our technology into larger systems," he says.

How do you position yourselves in a rapidly evolving landscape?

"The fast pace of development is not a problem for us. We are not aware of any other players doing exactly what we do, so we feel that we stand out," he says.

At the same time, the high pace brings increased interest in the sector as a whole.

"I heard a good quote recently: 'Things are moving insanely fast, but remember that it will never move this slowly again,'" says Stern.

What challenges do you see for startups in the defence sector?

"The biggest challenge has been reaching the end users. Expos like this one are valuable, but what is decisive is truly understanding their needs. It is about not sitting and guessing, but understanding the real problems of the Swedish Armed Forces," he says.

Stern also highlights government procurement processes as a potential obstacle, particularly regarding dialogue with smaller companies. At the same time, he sees signs of change.

"Smaller companies have almost always had to go through larger players to reach government agencies, which can be limiting. But I feel that the Swedish Defence Materiel Administration (FMV) is moving in the right direction on that issue," he says.

When it comes to drone development going forward, he points to a clear gap.

"If you look at Ukraine, around 90 per cent of combat engagements involve drones. At the same time, the focus on drone technology is still relatively limited in Sweden. There is also no clear drone policy within the Swedish Armed Forces," he says.

"A clearer dialogue is needed between end users within the defence sector and the companies developing relevant technology," he says.

What is the next step your company needs to take in order to develop?

"During the year, we want to move from prototype projects to more volume contracts. Scaling up production is not in itself an obstacle, since we primarily work with software, but it would require more staff. That is also what we hope to be able to achieve in the near future," he concludes.