Varjo Accelerates Defense Innovation with €40 Million Investment and Backing from Business Finland

Published

29/10/2025

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3 min

Image by (c) Varjo

Varjo’s R&D program receives €12 million in support from Business Finland.

Varjo, the global leader in military-grade virtual (VR) and mixed reality (XR) solutions, announced on the 15th of October a €44 million research and development initiative aimed at accelerating the creation of advanced, next-generation XR training systems for government and industry partners worldwide. Business Finland has awarded €12 million in funding to support the program, which will focus on enhancing Varjo’s next-generation mixed reality platform for modern training applications.

Already a trusted partner in more than 100 defense and aviation programs globally, Varjo generates nearly all of its revenue from exports — with 98% of its revenue in 2024 coming from outside Finland. The new funding enables Varjo to further strengthen its position as a strategically important technology provider for NATO and its allied nations.

Varjo’s upcoming generation of XR technologies is designed to meet the rapidly changing training needs of modern defense organizations. The solutions will enable realistic and adaptable training across diverse military domains — including air, sea, and land — covering applications such as fixed-wing and rotary aircraft, naval platforms, armored vehicles, and other ground-based systems. These capabilities will be made possible through advancements in system architecture, hardware and software design, user comfort, and data security. Additionally, the new systems are being developed with the flexibility to operate closer to the field when required, supporting more agile and mission-relevant training scenarios.

Finland offers an exceptional environment for developing immersive technologies, backed by world-class research expertise and a dynamic technology ecosystem. Recognized as a key growth area by Business Finland, virtual and mixed reality innovations are expected to play a significant role in driving new business opportunities and industrial competitiveness over the coming decade.

Read the original article at Varjo’s website.

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