In 2025, Ukrainian technology companies and startups raised $498m in venture and grant funding, up 8% from 2024. This indicates a continued recovery and structural transformation of Ukraine’s technology market despite the ongoing full-scale war.
These figures are presented in the annual analytical report DealBook of Ukraine 2025 by AVentures Capital.
Unlike previous years, when a significant share of funding was concentrated in a small number of large deals, in 2025 capital was distributed more broadly across different stages of company development. In particular:
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Late-stage rounds (Series D and Growth) again accounted for around half of total investment volume, signalling the return of large cheques for companies with proven business models.
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Series A funding nearly doubled, pointing to the emergence of a new wave of startups capable of scaling in the medium term.
For the first time since 2021, foreign investors invested more capital in early-stage startups than Ukrainian funds. This is an important signal of renewed confidence in Ukraine’s technology market from global investors, who increasingly see potential in products with battlefield validation, innovative solutions and export potential.
The fastest-growing sector was Defense Tech — technologies for the security and defence sector.
- In 2025, companies in this segment raised $129m, representing a 119% increase compared with the previous year.
- The average deal size in the sector rose to $2.1m, almost five times higher than before.
- Some defence startups reached operational profitability, operating exclusively on contracts with public and private customers.
This sector has become not only a source of funding but also a strategic “R&D platform”, where startups develop innovations tailored to real frontline needs and those of NATO partners.
Artificial intelligence has become a horizontal technology increasingly integrated into Ukrainian companies’ products. In 2025, AI-focused startups raised approximately $302m — nearly three times more than companies without a significant AI component in their products.
AI capabilities are actively applied in defence, fintech, cybersecurity and education products, further strengthening the export potential of Ukrainian technology solutions.
While the mergers and acquisitions market remains relatively subdued, several landmark deals took place in 2025.
One of the largest was the acquisition of ride-hailing service Uklon by Kyivstar for more than $155m. In addition, Kyivstar completed an IPO on NASDAQ, sending a strong signal of confidence from global investors and demonstrating the ability of Ukrainian companies to access international capital markets.
Grant funding continues to play an important role in the ecosystem: Ukrainian startups received around $78m in grants, a 56% increase year-on-year. These funds enable the implementation of innovative projects at early stages, where venture capital is not yet ready to invest.
Analysts at AVentures Capital believe the market has moved past a survival phase and is entering a phase of qualitative growth, driven by:
- the recovery of foreign investor confidence;
- the development of defence technologies with export potential;
- the active adoption of AI;
- the emergence of the first Ukrainian unicorns;
- the appearance of initial IPOs and large-scale M&A transactions.
Funding activity in 2025 became a signal that Ukrainian technologies are not only surviving during the war, but are also creating new products that are competitive on the global market.
