Finnish VR/XR Startup Varjo Raises €5M With Option For €5M More To Advance Military Training Realism

Alongside the investment, Varjo and THEON have formed a strategic partnership to collaborate on product development and commercial initiatives.

The funding will enhance Varjo’s ability to deliver military-grade realism via next-generation immersive technologies, while supporting THEON’s THEON NEXT initiative, focused on advancing high-tech innovations for defense applications.

Led by Timo Toikkanen, Varjo delivers military-grade virtual and mixed reality solutions focused on immersion, performance, and security for industrial clients.

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The company reports that over 25% of Fortune 100 firms use its technology to optimise operational processes. Varjo is renowned for creating virtual and mixed reality experiences that closely replicate real-world scenarios, modernising training across land, sea, and air environments.

Its hardware and software integrate seamlessly with professional 3D software, image generators and advanced simulator systems. Key offerings include the XR-4 Series and the government-compliant XR-4 Secure Edition, enabling realistic 3D condition replication. These solutions enhance training outcomes, improving speed, efficiency and cost-effectiveness.

“We are proud to welcome THEON as a strategic investor in Varjo,” says Timo Toikkanen, CEO of Varjo. “Since our inception, we have been creating the most advanced VR/XR military systems globally. THEON’s extensive experience and leadership in the defence sector make them an ideal partner as we expand our impact in mission-critical training and simulation, enabling unprecedented levels of realism, readiness, and operational effectiveness.”

THEON Group develops and manufactures night vision and thermal imaging systems for defense and security applications worldwide.

Under the leadership of Christian Hadjiminas, the company has deployed over 220,000 systems across armed and special forces in 71 countries, including 26 NATO member states.

Christian Hadjiminas, CEO of THEON, comments, “Our investment in Varjo under the THEON NEXT initiative deepens our reach into the European innovation ecosystem and gives THEON access to unique capabilities in visual display systems and projecting technology. Together, we are pushing the frontier of digital defence technology.”

About Varjo

Varjo revolutionizes reality with hardware and software merging virtual, mixed, and traditional environments. Used by astronauts, pilots, and Fortune 100 companies, its XR-4 Series and XR-4 Secure Edition deliver unmatched immersion, performance, and security, enabling professionals to recreate real-life conditions in 3D for faster, more efficient and cost-effective work.