Investments in defense: who is investing in which startups
21 April 11:49
Private investment in Ukrainian defense technology (defence-tech) demonstrated explosive growth in 2024, increasing tenfold compared to 2023 and reaching an estimated $35 to $50 million. This is evidenced by the analytical brief “The Role of Private Funds in the Development of the Defense Industry” by Defence Industry Data (D.I.D.), prepared in April 2025 for the Ukrainian Defense Industry Council, "Komersant Ukrainian" reports.
According to Ihor Fedirko, Executive Director of the UDF, there is a growing interest in Ukrainian defense startups.
“Our task as the Council is to make sure that every dollar invested works for the strength of the Ukrainian defense industry and allows dozens of players to grow, not just a few,” said Fedirko.
Who invests in defense-tech
The D.I.D. report documents the rapid development of defense venture capital investment in Ukraine. There are more than 10 active funds on the market that invest in defense-tech. Among them are Nezlamni, D3, Double Tap Investments, MITS Capital, Freedom Fund VC, Green Flag Ventures, Resist.UA, Presto Ventures, SMRK, Octava Capital (Octava Defence), etc.
The funds differ in their ownership structure (beneficiaries are mostly Ukrainians or Americans) and approach: some specialize exclusively in defense technologies, while others are only one of the areas of focus.
The report also notes that investors are particularly interested in startups that offer dual-use products or high-tech solutions.
How much money is invested and how it is invested
The study shows that the vast majority of funding is directed to the early stages (seed and pre-seed), while there is virtually no funding for scaling (growth).
The average check of an investment round in the early stages is in the range of 125-500 thousand euros, which indicates the immaturity of the market, but also a significant potential for start-up projects.
Which defense companies have already received investments
Despite the fact that the focus is on the early stages, D.I.D. analysts provide specific examples of Ukrainian companies successfully attracting significant funding, including from foreign investors:
– Osavul (narrative security) raised $3 million from the German fund 42CAR.
– Swarmer (software for UAVs) received $2.7 million from Radius Ventures, an American fund specializing in deep-tech in the aerospace sector.
– M-FLY (guidance systems for UAVs) raised $1.3 million, including from Resist.UA, MITS Capital, Freedom Fund, as well as from individuals and equipment manufacturers.
– Vidar (acoustic artillery detection systems) received $450 thousand from the Czech fund Presto Ventures.
– Himera (EW-resistant radios), after receiving investments, including from Nezlamni, began supplying tactical radios for testing to the US Armed Forces in 2024.
The report emphasizes that the state accelerator Brave1 plays an important role in the ecosystem, which as of September 2024 reported on more than two thousand pending projects awaiting investors.
What we know about the Brave1 cluster
It was launched in April 2023 to stimulate the development of military innovation and defense technologies.
As of mid-December last year, more than 3,300 developments from more than 1,500 manufacturers were registered on the Brave1 platform. More than 230 developments have been codified in accordance with NATO standards.
These are mainly UAVs (more than 850 developments), ground robotic systems (more than 300) and electronic warfare (240).
Since July 2023, Brave1 has been running a grant program to support Ukrainian developments. Since then, it has issued more than 400 grants for over UAH 1.3 billion.
“The state budget for 2025 includes almost UAH 3 billion for grants from Brave1. This is twice as much as in 2024. The Strategy for Digital Development of Innovations 2030 also envisages scaling up the grant program. Brave1 grant funding has been identified as one of the priorities of state policy to support the development of innovations in Ukraine,” the cluster told DOU.
Brave1 has a separate area to help attract private investment in defense innovation.
According to Brave1, “in 2024, the Ukrainian defense tech industry managed to attract more than $40 million in investments, which is 8 times more than in 2023.” In 2025, the Ukrainian defense tech sector expects to attract more than $100 million in investments.
The cluster currently works with nearly 300 investment partners from over 35 countries.
