Latvia backs 12 defence tech startups to accelerate military innovation

Latvia is taking a significant step towards strengthening its defence technology sector by selecting 12 startups for its first national defence pre-acceleration programme, DIAL (Defence Innovation Accelerator for Latvia).

In two weeks' time, I will be attending Slush for the 17th consecutive year. As I prepare to meeting with some of the most innovative startups and their founders, I would like to introduce you to a few Latvian tech startups attracting important funding and why they matter.

Announced on 20 October 2026, the initiative will provide each selected company with up to €120,000 in funding, alongside commercialisation support, international mentoring, and opportunities to test technologies with military end users. Developed by Latvia’s Ministry of Defence in cooperation with UniLab, an accelerator established by the country’s research universities, the programme aims to transform early-stage innovations into commercially viable defence technologies. The initiative also reflects Latvia’s ambition to become a competitive player in the international defence technology market.

AI, drones, and autonomous systems take centre stage

Under the theme ‘Autonomy for Superiority’, the programme focuses on autonomous systems, unmanned vehicles, advanced sensors, and artificial intelligence.

Among the selected startups, Detexity is developing OrbiScan, a 360-degree drone detection system combining event-based cameras with edge AI. Unlike conventional radar-based detection, the passive technology identifies drone propellers through their optical signatures without emitting signals. This approach could prove particularly valuable against fibre-optic-controlled drones, which are difficult to detect using conventional radio-frequency monitoring.

Another startup, Unfazed, is developing Sense On, a portable acoustic detection system designed to provide early warnings against first-person-view (FPV) drones.

Meanwhile, Ardlat is working on a compact high-power microwave system capable of damaging drone electronics, offering an alternative to conventional signal jamming.

Other innovations include Comlab’s Hardmode, which enables rapid deployment of private 4G/5G networks when conventional communications infrastructure becomes unavailable.

SUBmerge Baltic is developing autonomous mission-control software for unmanned maritime vehicles, while Ascent Lumina is creating synthetic datasets to improve AI-powered computer vision systems.

These technologies demonstrate how advances in artificial intelligence, robotics, telecommunications, and sensing are increasingly converging within the defence sector.

From university research to international markets

According to The Defense Post, the programme attracted over 30 applications, exceeding initial expectations. Although the original plan was to support up to 10 startups, the Ministry of Defence expanded the first cohort to 12.

Three selected companies, SUBmerge Baltic, Tactical Avionix, and CapitalG, emerged from UniLab’s university pre-acceleration activities, illustrating the potential of academic research to generate defence-oriented businesses.

Over the next ten months, participants will receive guidance from specialists across more than 15 countries and opportunities to validate their technologies with Latvia’s National Armed Forces and international partners. Commercialisation and export developments will be central objectives, with particular attention to North American markets.

What this means for Europe’s defence technology future

Latvia’s initiative comes as European countries increasingly recognise the importance of technological independence, military readiness, and rapid innovation. For smaller countries, investing in specialised defence startups offers an opportunity to develop advanced capabilities without competing directly with established military manufacturers.

The programme could also strengthen Latvia’s position within NATO’s defence innovation ecosystem, particularly by preparing promising startups for initiatives such as NATO’s Defence Innovation Accelerator for the North Atlantic (DIANA). However, developing promising prototypes is only the beginning. Their success will depend on operational validation, procurement opportunities, investment, and the ability to scale production.

The bigger question is whether Latvia can turn its emerging defence technology ecosystem into an internationally competitive industry. If successful, DIAL could offer a model for how smaller European nations can transform university research, entrepreneurial talent, and emerging technologies into strategic defence capabilities.

Susan Fourtané is a sci-tech journalist who has been reporting on startups, unmanned vehicles, sensors, robotics, AI, and automation for almost two decades ... and refuses to stop doing it despite gen AI forcing its way trying to replace her and many others.

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