Helsinki-based VR/XR company Varjo has secured a €5 million minority investment from THEON, a global defence technology firm, via a convertible loan.
The agreement also includes an option for THEON to double its commitment with an additional €5 million.
Alongside the investment, the two companies have formed a strategic partnership to co-develop products and expand commercial initiatives, aiming to enhance realism in military and defence training through immersive technologies.
“Since our inception, we’ve been creating the most advanced VR/XR military systems globally. THEON’s experience in defence makes them an ideal partner as we scale mission-critical training and simulation,” said Timo Toikkanen, CEO of Varjo.
Immersive tech for defence and enterprise
Founded in 2016, the startup builds virtual and mixed reality solutions that replicate real-world conditions with unprecedented accuracy. Its products — including the XR-4 Series and XR-4 Secure Edition — are designed for industrial and defence customers and are already adopted by more than 25% of Fortune 100 companies.
Varjo’s hardware and software integrate with professional 3D tools, image generators, and advanced simulators, enabling military, aviation, and industrial partners to modernise training at scale.
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THEON’s global defence footprint
THEON, headquartered in Greece and led by Christian Hadjiminas, develops night vision and thermal imaging systems deployed across 71 countries, including 26 NATO members. With over 220,000 systems in service, THEON aims to strengthen its European innovation presence through the THEON NEXT initiative.
“Our investment in Varjo gives us access to unique visual display capabilities while expanding Europe’s defence innovation ecosystem,” said Christian Hadjiminas, CEO of THEON.
Together, the partnership will accelerate the adoption of next-generation digital defence technologies, combining THEON’s operational expertise with Varjo’s immersive training solutions.
