From apps to drones: Baltic founders build tools for a new security era as Russia threat grows

by Theleaders | August 2, 2026 1:11 pm

VILNIUS, Aug 2 — When Russia launched its full-scale invasion of Ukraine, Rapolas Markevicius was managing a private equity fund in Lithuania, a Nato member on the alliance’s eastern flank that fears it could be Moscow’s next target.

Four-and-a-half years later, his new startup Pdkinematics builds precision guidance systems that help drones strike targets more accurately even when GPS signals are jammed, with the technology supplied to Ukraine and its European allies.

He is among a growing group of startup founders in the Baltics seeking to strengthen the region’s defence capabilities as Nato’s eastern members face hybrid threats from Russia and its close ally Belarus.

“The beginning of the war was kind of a call for action for us,” Markevicius told AFP.

After Russia’s February 2022 invasion, he launched a research and development programme to “understand what kind of technologies we could actually deliver to the battlefront”, working with his co-founder from the space technology sector.

As countries along Nato’s eastern flank face hostile actions ranging from drone incursions to cyberattacks, experts say startups like his are helping improve the region’s resilience and deterrence against Russian aggression.

‘Scalable solutions’

A thriving startup scene has developed in Lithuania and its fellow Baltic states of Estonia and Latvia in the decades since they transitioned from Soviet-controlled command economies.

The region is home to companies that have become globally recognised, including Vinted, Bolt and Skype.

Entrepreneurs are now filling gaps left by traditional arms contractors as warfare undergoes rapid technological change.

The war in Ukraine has accelerated the use of drones and robots on the battlefield, creating demand for technologies that can be developed quickly and produced at scale.

“The current technology that will drive, and is currently driving, the transition of European arms must be as scalable as it must be high-tech,” Markevicius said.

He added that startups were often “creating quite efficient, cost-efficient and scalable solutions”.

‘Tried and tested’

The Baltic states have some of Nato’s highest defence spending levels relative to their economies, with Lithuania allocating 5.3 per cent of its GDP to defence, the highest among the alliance’s 32 members.

Governments have become more open to working with newer defence companies as the nature of warfare continues to evolve.

The Lithuanian Armed Forces provide access to training areas and airspace every month as testing grounds for emerging technologies.

The war in Ukraine has also provided companies with real-world feedback on how their systems perform against Russian forces.

“You can test your product with Ukraine, with Lithuanian soldiers, with any Nato soldiers,” said Elvinas Kukys, chief executive and founder of Luna Robotics, a startup developing advanced imaging systems for FPV drones.

The environment has helped defence startups across the region attract significant foreign investment.

“The Baltic states have really been tried and tested over the past four years about how they needed to restructure their economies, reorient and really invest in their defence capabilities,” said Mario Bikarski, senior Europe analyst at risk intelligence company Verisk Maplecroft.

“They are really now some of the best-prepared countries to withstand a wide range of new forms of attacks,” he added.

‘A new normal’

A growing defence startup sector “is not something that is going to stop a potential Russian attack”, Milan Trajkovic, an analyst at Fitch, told AFP.

“But it does probably make it more difficult,” he added.

Invest Lithuania (IL), which helps foreign firms invest in the country, said the Baltics’ proximity to Russia means some investors require reassurance.

“We understand that this is the new normal,” said its director Elijius Cevelis.

He said meetings between investors and government ministries, sometimes involving confidential information, could help ease concerns and promote a better image of the country and region.

“We have many international troops, we have armour, we have vehicles, we have everything we haven’t had before,” he said. 

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Source URL: https://theleaders-online.com/from-apps-to-drones-baltic-founders-build-tools-for-a-new-security-era-as-russia-threat-grows/

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