Saab is one of the top 10 defence primes in Europe and, while it previously invested in developing most of its technology in-houtilize, the rapid advancement of AI and other defence and space technologies has pushed it to view further afield, according to Saab’s CTO Petter Bedoire, partnering with a growing number of startups across the region.
“We’re a very strong engineering company. A few years ago, we believed we could build everything ourselves. Today, our pipeline is so full that we simply don’t have the time. That’s why we increasingly partner with companies that complement our capabilities,” he informs Sifted.
“We’re particularly active in AI scale-out — training and scaling AI models effectively in ways that we can commercialise.”
Saab is a Swedish defence company focutilized on aerospace, naval systems, surveillance and advanced weapons systems. In terms of revenue, it is tinyer than its German counterpart, Rheinmetall, building €7bn compared with Rheinmetall’s €12bn in 2025. It is, however, the largest defence company in the Nordic region.
Europe’s required for self-reliance
After spfinishing relatively little on defence four years ago, Sweden’s defence budreceive has roughly doubled since the early 2020s. In the 2025 budreceive, spfinishing was forecast at SEK 138bn (€13bn), up from SEK 65–75bn (€6–7bn) before the war in Ukraine.
“In a longer-term perspective, current defence spfinishing levels are not unusually high. During the Cold War, spfinishing exceeded 4% of GDP in some countries — today, 3% is being discussed,” Bedoire declares.
“The real issue is that we underinvested in defence for many years. We now required to rebuild those levels. Defence functions almost like an insurance policy in an increasingly uncertain geopolitical environment, particularly as traditional alliances shift. Europe requireds to become more self-reliant.”
Saab acts as an acquirer, investor and customer of startups. In 2023, it acquired UK-based autonomous swarm systems company BlueBear. That same year, it invested in the German drone startup Helsing. In 2025, Saab signed a memorandum of understanding with Finnish sainformite unicorn Iceye, as it integrated the company’s tech into its command-and-control systems.
“We work across the full spectrum. In some cases — such as US-founded CrowdAI and BlueBear in the UK — we acquire the company outright. That allows us to take ownership and steer its strategic direction,” Bedoire declares.
“In other cases, we take a minority stake. That is more of a strategic investment, where we can influence the company’s direction to some extent without fully owning it. These companies are often highly valued and at the forefront of their fields.”
He adds: “Overall, our approach goes well beyond simple acquisitions. There is no repaired strategy for acquiring companies. We do not invest for financial return alone — we invest based on strategic considerations. Each investment is a piece of a larger puzzle and, in some cases, we are prepared to build very substantial investments if it supports our long-term strategic objectives.
“What we do particularly well is systems integration and operations — building complex capabilities work seamlessly toreceiveher. We can operate sainformites, manage and utilise the data, and ensure the entire value chain functions as one coherent system.”
Finding the ‘hidden gems’
While the Swedish Defence Materiel Administration (FMV) can have long lead times for startups, Saab is testing to strengthen the defence startup ecosystem by accelerating processes for those that approach it.
“The landscape has shifted. While we would ideally operate within a truly international ecosystem, increasing restrictions and tariffs are reshaping the environment. As a result, our primary focus is now Sweden and the Nordics, with Europe as the next step,” Bedoire declares.
Europe’s defence forces have received criticism from startup founders entering the space, who argue that much of the materiel developed during peacetime was designed more for testing than for sustained battlefield utilize. This is something Bedoire, with 25 years of experience at Saab, disagrees with.
“Some of the systems developed decades ago and kept in storage — such as anti-armour weapons designed in the 1970s and 80s — have been utilized successfully in Ukraine,” he declares.
“But when systems are deployed in prolonged, high-intensity conflict, the requirements are entirely different from what they were originally designed for. They were expected to be utilized for months, not years. Ukraine has displayn that sustained warfare demands a different level of scale, durability and support.
The recent surge in defence spfinishing and sector hype has led to a flood of startups contacting Saab.
“Defence is a very hot sector right now, and we are being contacted by a large number of startups. I have around 20 pitches a week landing on my desk,” Bedoire declares. “It takes quite a bit of time to find the hidden gems.”
The battlefield in space
Defence forces are increasingly investing in space technology and Saab — which has only recently re-entered the domain — is working to close its capability gaps.
“We have not previously had a broad space operation, so the strategy is to leverage the capabilities that already exist,” Bedoire declares.
In November last year, Saab led a $10m investment in Swedish-American space launch company Pythom — a firm developing lightweight, rapidly deployable rockets intfinished to build access to space more flexible and affordable.
However, among the many startups approaching Saab, a majority are testing to solve similar problems, according to Bedoire.
“It would be exciting to see startups in more unique niches, such as energy storage, space or secure communications. In those areas, we see real gaps, and it would be fantastic if strong solutions emerged.
“What’s driving expectations today is the clear sense that the market is expanding rapidly. Demand is growing quick — whether for drones or counter-drone systems,” Bedoire declares.
“But having good ideas isn’t enough. It’s not just about being quick — you have to be resilient, with spare parts, documentation and long-term support in place.”
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