IT Arena is known for igniting new opportunities, ideas, and partnerships. Last year’s Startup Competition jury members united to create Double Tap Investments, an investment company dedicated to Ukrainian defense tech innovations. This year, they already have a $100,000 investment commitment in place for the 2024 edition. We spoke with the company’s co-founders: Mikko-Pekka Hanski, a speaker and jury member at IT Arena 2023; Jan-Erik Saarinen, also a jury member at IT Arena 2023; and Oles Khudoba, who coordinated the defense startups jury on behalf of Brave1 Defense Tech Cluster. They shared insights into the company’s activities and future plans.

How did you decide to start the team? Did you know each other before?

The team members knew each other before, but at the IT Arena 2023, we realized that more focused actions are needed. Our capabilities are supporting each other. As a Finnish publication recently described us, we are a “dream team.” 

What are the primary goals of the Double Tap Investments?

We have created this company to help Ukraine win the war by scaling and developing Ukrainian defense technology startups, foster a strong connection between the Finnish defense ecosystem and Ukrainian innovations and create value for the founders of Ukrainian startups, as well as for the partners and investors of Double Tap Investments.

Which projects have you already invested in, and what are your future investment plans?

We currently have one intelligence data fusion platform in the portfolio and we are looking to invest in two-three defense technology startups by the end of 2024.

Can you walk us through the investment process for defense startups?

We follow these steps:

• Researching Ukrainian defense tech startups in close cooperation with key stakeholders of the ecosystem.
• Meeting with founders and discussing their vision.
• Validating the technology, business model, scalability, and feasibility.
• Conducting due diligence and negotiating investment terms.
• Making the investment.
• Developing a business plan and implementation strategy for the portfolio company.

Many investors are hesitant to invest in defense tech. Why did you decide to do it?

The defense sector is critically important in Ukraine and globally, including Finland. We never expected it to be easy. War is not easy, and investing in new and innovative defense tech solutions is not easy either. However, by doing it, learning, and finding the best solutions, we will help Ukraine win the war and, at the same time, create value for startup founders, communities around them, and investors.

What common misconceptions exist about investing in Ukrainian defense technologies?

Many investors mistakenly believe that investing in Ukrainian defense technology startups is impossible due to the business domain, risks, transparency, etc. Investing in Ukrainian defense technology startups is not easy, but it is not impossible. 

Are you planning to bring new investors into your investment company?

Possibly later this year or early 2025, there is significant interest, particularly among wealthy Finnish individuals and family offices. These investors believe that supporting Ukrainian defense tech is the most effective way for Ukraine to achieve victory and to address the challenges of asymmetric warfare –  as we all know, Finland and Ukraine have a common enemy.

Currently, we aim to work with a limited number of partners – like-minded individuals who share our values. All our investors are Finnish nationals. Since we are not a traditional fund and all partners sit on the investment committee, it is crucial that each partner is carefully selected.

What advice would you give to fellow investors before IT Arena?

All investors need to establish connections with startup founders and other investors before the event.

What are your plans ahead of the Startup Competition 2024? 

Double Tap Investments has a $100,000 investment commitment for the Startup Competition 2024. We eagerly anticipate our meetings with the startup teams at IT Arena.

Here are some key qualities Double Tap Investments seeks in startups, along with questions we will be asking:

• Problem Identification: How do you pinpoint existing issues in the defense industry, particularly in relation to the needs of the Ukraine’s Armed Forces? How does your team stay abreast of the latest innovations? What makes your approach unique?
• Team Ambition and Drive: How ambitious and driven is your team? What motivates you to achieve success? Do you possess the qualities necessary to excel in your specific area of the defense industry?
• Market Understanding and Milestones: Does your team have a clear understanding of the market? What are your key milestones? If we invest in your startup, how will you utilize the funds to achieve these milestones?