Since the beginning of 2024, more than $12 million has already been invested in the Ukrainian Defence Tech industry, which is twice as much as for the entire last year, according to the Brave1 Defence Technology Cluster.

More than 2,600 developments from more than 1,200 domestic manufacturers are registered on the platform. There are also established markets in areas such as UAVs (over 500 companies), ground robotic systems (over 160 manufacturers) and electronic warfare (110 manufacturers). 

Today, Ukrainian and foreign investors are increasingly interested in the Ukrainian defence tech industry. This is due both to the fact that Ukrainian developments have proven their effectiveness on the battlefield and to the fact that they are cheaper than European or American ones.

AIN.UA has researched and compiled the TOP-15 by the amount of investments of Ukrainian and foreign funds and accelerators that invest most in Defence Tech startups. 

Research methodology

The study included foreign and Ukrainian funds and accelerators that have invested in Ukrainian defence tech startups. We included those created by Ukrainians and having R&D in Ukraine.

Investment data was collected from open sources, such as Crunchbase, and official announcements and portfolios on fund websites. 

The list of investments in the ranking is arranged by amount - from the largest to the smallest. 

There may be more funds and investments in defence start-ups, but only those that are publicly known and their investment amounts are included in the list. 

Brave1 (Ukraine)

A state-owned cluster for the development of the Defence Tech market in Ukraine, which was launched in July 2023. Since then, the cluster has issued 263 grants for $4.96M and 46 grants for UAH 67M under the grant programme. Brave1 also attracts private investment - more than $12M since the beginning of the year. 

Amount of investment: developers can receive a grant of 500k, 1M, 2M, 4M, and 8M UAH within the grant programme. 

Projects that received a grant (publicly known):

  • DeepState (Kolossal) - developed the OSINT system ‘Kolossal’ for military use. They received about $24k;

  • SkyLab - developed the Sirko-S1 ground robotic platform that helps the military deliver ammunition for artillery systems;

  • Swarmer - working on AI technology to combine drones into a swarm. They received $48k;

  • Frontline - develops and manufactures robotic systems. They received $48k to develop reconnaissance drones; 

  • Mantis Analytics - monitors the information field in real time and helps organisations identify risks. They received $25k;

  • Eye Camera is a thermal imaging module for UAVs. Received $25k;

  • Urobo - received funding for the development of a remote radio module ($30k) and an electronic buggy rebuild ($25k);

  • Drill app - developed a training media platform for training with different types of weapons. They received $30k.

u.ventures (Ukraine and the USA)

The fund was founded by Western NIS Enterprise Fund (WNISEF) - now UMAEF (Ukraine-Moldova American Enterprise Fund) - in 2017 to invest in technology startups.

Investment amount: about $3M

Projects invested in: 

  • Esper Bionics is a startup that develops bionic prostheses with intuitive control technology (the editorial team also classifies projects for veterans as Defence Tech). They invested $3.75M together with the German fund YZR;

  • Osavul, which is engaged in media analytics and threat detection in the media environment using AI. Invested $3M with two funds: SMRK and 42CAP. 

Ukrainian Startup Fund (Innovation Development Fund, Ukraine)

The USF is a government project founded in 2018 that helps innovative and technology projects get funding at the early stages. In 2023, it was transferred from the Ministry of Finance to the Ministry of Digital Transformation. 

Investment amount: $2.5M

Projects invested in: 

  • AeroDrone - implementing solutions based on unmanned aerial vehicles, which are the leader in terms of payload and flight duration ($50k);

  • Drill - a mobile application for tactical shooting and self-defence training ($25k);

  • Esper Bionics - develops a new generation bionic hand prosthesis and a cloud-based platform as a service that teaches prostheses the user's usual movements, improving control ($50k);

  • IZIVIZ - manufactures drones for safe, easy and efficient visual inspection ($25k);

  • Ukropter - unmanned aerial vehicles for use in various fields, both military and civilian ($35k).

YZR (Germany)

A venture capital fund based in Munich, Germany. 

Investment amount: about $1.8M

Projects invested in:

  • Esper Bionics is a startup developing bionic prostheses with intuitive control technology. Invested $3.75M together with u.ventures.

SMRK (Ukraine)

A Ukrainian venture fund that has existed since 2013. 

Investment amount: $1.5M

Projects invested in: 

  • In 2023, they invested $1M in Osavul, a startup that provides media analytics and detects threats in the media environment using AI. 

  • In 2023, they invested $500k in Aspichi, a startup developing a platform for streaming 360-degree spatial video in real time and audio in a VR helmet. Aspichi is classified by the editorial team as a Defence Tech project that creates IT solutions for veterans, including VR therapy solutions for the treatment of psychological disorders.

D3 Venture Capital (international fund based in Ukraine)

A $30M defence fund invested by former Google CEO Eric Schmidt.

Investment amount: $1M 

Projects invested in: 

  • Buntar Aerospace - a manufacturer of reconnaissance drones ($125k);

  • Zvook - develops a hardware and software system that acoustically detects cruise missiles, helicopters, drones and enemy fighters at low and medium altitudes;

  • Frontline - develops and manufactures robotic systems. Recently, they presented a remotely controlled turret for the MK-19 Storm;

  • Swarmer - working on AI technology to combine drones into a swarm ($125k with Angel One Fund);

  • Drone Space - engaged in the modernisation and development of drones; 

  • Ailand Systems - the company develops drones for demining;

  • HighCat - develops and manufactures UAV drones for all reconnaissance missions.

42CAP (Germany) 

German venture capital fund specialising in early-stage investments in technology companies.

Investment amount: about $1M

Projects invested in: 

  • Osavul, which is engaged in media analytics and threat detection in the media environment using AI (invested $3M together with u.ventures and SMRK).

Nezlamni Fund (Ukraine)

A $2M venture fund created by Uklon co-founders in early summer 2024. The fund focused on investing in Ukrainian defence startups at the seed stage.

Investment amount: $640k

Projects invested in:

  • In June 2024, the fund made its first major investment in Buntar Aerospace, a startup that has developed an electronic warfare-indistinguishable reconnaissance drone with a smart control system. The investment amounted to $200k;

  • In July 2024, they invested in Ailand Systems, a startup that develops drones for demining. The investment amount was $200k;

  • In September 2024, they invested $240k in Mantis Analytics to develop an AI risk management platform.

United Angels Network (Ukraine)

The fund was founded in late 2023 by tech entrepreneurs. 

Investment amount: $390k

Projects invested in:

  • Himera - develops resistance to Russian electronic warfare radios; 

  • Buntar Aerospace - a manufacturer of reconnaissance drones. 

Angel One Fund (Ukraine)

At the end of 2022, the Ukrainian Catholic University launched the Angel One venture fund with an initial volume of $1.5M.

Investment amount: 

the total amount of investments is not disclosed, but it is known that the average investment amount ranged from $50k to $300k.

Projects invested in:

In six months, invested in six Ukrainian startups in the field of defence and dual-use technologies under syndication deals. 

  • Swarmer - transforms drone swarm operations, making them more efficient and effective. The fund invested $125k in this startup together with D3 Venture Capital;

  • Mantis Analytics - monitors the information field in real time and helps organisations identify security risks; 

  • Buntar Aerospace is a Ukrainian defence startup that develops the Buntar One reconnaissance UAV and Buntar Copilot, a software for planning and executing reconnaissance missions.

MITS (Ukraine and the USA)

The International Defence Accelerator was launched in early 2024. It was launched by a Ukrainian team together with American partners. The accelerator's target fund is $50M. 

The amount of investment: 

$200k in several defence startups. 

The number and names of the startups are not disclosed, but it is known that the teams are developing secure communication systems for drones, AI-based wearable detectors and drone jammers, and visual positioning systems for use in the absence, jamming, or damage of GPS signals.

Green Flag Ventures (USA)

The fund was launched by American investor Justin Zeefe and Deborah Fairlamb to invest in Ukrainian startups. 

Investment amount: 

$150k-$1M

Projects invested in: 

  • Kara Dag - developing systems to counter drones;

  • Himera - develops anti-Russian radios.

  • Swarmer - transforms drone swarm operations, making them more efficient and effective.

     

Freedom Fund VC (Germany)

A German fund founded by Marcel Jöhn, former CEO of the German Armed Forces Innovation Centre. 

Investment amount: $100k

Projects invested in: 

  • Himera - develops anti-Russian electronic warfare radios.

ZAS Ventures (Ukraine)

A Ukrainian venture capital fund that closed its debut deal in early 2023. 

Investment amount: 

$50k

Projects invested in: 

  • In March 2024, they invested in Mantis Analytics, which monitors the information field in real time and helps organisations identify risks and engage in cybersecurity.

Radius Capital (USA)

An American venture capital fund that has been investing in early-stage Deep Tech technologies, software, and artificial intelligence systems operating in the aerospace industry since 2021.

Investment amount: 

unknown, but the fund has invested in eight projects since 2022 for a total of $55.5M.

Projects invested in: 

  • In September 2024, the fund invested in Swarmer, a Ukrainian defence startup specialising in automated solutions for coordinated drone groups. We invested $2.7M together with R-G.AI, a US defence technology company, Green Flag Ventures, and D3.

Author: Anastasia Ischenko