In a significant advancement for Denmark's venture capital landscape, Niels Vejrup Carlsen has announced the launch of Final Frontier, the country’s inaugural venture capital fund focusing on aerospace and defence technologies. This new fund aims to raise €150 million to support the commercial development of space and bolster the innovative capabilities of the European defence sector.

The Vision Behind Final Frontier

Final Frontier’s primary objective is to enhance the safety and strategic autonomy of European democracies, particularly in light of the growing security challenges posed by geopolitical conflicts. As the founding partner of this fund, Niels Vejrup Carlsen brings over 17 years of experience from SEED Capital, where he played a pivotal role in funding prominent startups such as Trustpilot and Lunar. His extensive background positions him well to steer this innovative initiative in a rapidly evolving market.

Carlsen emphasized the interconnection between space technologies and defence, noting that the ongoing war in Ukraine has underscored the strategic military role that space plays in modern conflicts. He stated, “Space technologies often have a defence dimension… we need to re-establish European defence in response to the military threats and geopolitical conflicts that have become a new European reality.”

A Focus on Nordic Investments

Final Frontier plans to concentrate its investments within the Nordic region, with expectations that about half of its funding will be allocated to local startups. This focus reflects a broader strategy to harness the region’s potential in aerospace and defence technologies, fostering innovation while addressing Europe’s security needs.

The fund aims to attract investments from private actors, a move that Carlsen believes is timely given the recent changes in EU policies that have made it easier for private companies to engage in commercial space development. While the U.S. has long seen private ventures like SpaceX and Rocket Lab thrive, Europe has only recently begun to open up to similar opportunities, highlighting the necessity for initiatives like Final Frontier.

Responding to a Technological Arms Race

The current global security environment is marked by a technological arms race, particularly evident in the wake of the war in Ukraine. Carlsen pointed out that “only agile startups are able to keep pace” with the rapid technological advancements required in the defence sector. He believes that new, innovative companies are crucial to challenge established players and create a more dynamic market landscape.

In light of anticipated public investments in defence over the coming years, Final Frontier aims to meet this increasing demand for innovation. The fund’s vision extends beyond immediate military applications, as it seeks to identify technologies with dual-use potential—those that can benefit both defence and civilian sectors. Historical examples include advancements like GPS and solar panels, which originated from military and space exploration efforts.

The Imperative for European Innovation

As Europe finds itself lagging behind the U.S. and China in terms of innovation, Carlsen underscores the need for increased investment in aerospace and defence to maintain prosperity. “Europe is falling behind the U.S. and China in terms of innovation. We need to invest more in space and defence if we wish to remain a prosperous region,” he remarked. By addressing these needs, Final Frontier hopes to contribute to solutions for pressing global challenges in areas such as health and climate technology.

Final Frontier represents a bold step forward for Denmark's venture capital sector, aiming to bridge the gap in aerospace and defence innovation. With a focus on Nordic startups and a commitment to dual-use technologies, the fund is poised to make a significant impact on European security and technological advancement. As Carlsen leads this initiative, the potential for growth and development in these critical sectors appears promising, marking a new era for Denmark’s investment landscape.