According to First Deputy Prime Minister and Minister of Digital Transformation Mykhailo Fedorov, Ukraine accounts for one-third of all early-stage DefenceTech investments in Europe.
Ukraine — the European leader in early-stage DefenceTech
Dealroom reports that DefenceTech companies across Europe and the United Kingdom raised a combined $200 million in early-stage funding (Pre-seed, Seed, Series A) in 2025.
Ukrainian startups have become the key beneficiaries of this growth:
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the number of deals has more than tripled since 2022;
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the average round size increased from $200,000–400,000 to $2.5–5 million;
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interest from U.S., U.K., Polish, and Baltic investors has surged due to the proven battlefield effectiveness of Ukrainian technologies.
Highest-funded Ukrainian DefenceTech companies in 2025
According to Fedorov, the largest rounds were raised by:
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Swarmer — $15 million (autonomous FPV drone swarms);
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Tencore — $3.74 million (UAV detection and tracking systems);
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Dropla — $2.75 million (software for UAV command, control, and unit coordination);
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Teletactica — $1.5 million (next-generation radio systems and situational awareness tech);
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M-fly — $1.3 million (tactical VTOL drones);
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Norda Dynamics — $1 million (sensors and control modules for precision weapons).
Additional insights
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Several Ukrainian DefenceTech solutions are already scaling abroad, including to NATO countries such as the U.S., Poland, and Lithuania.
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According to Defence iQ, Ukrainian DefenceTech is among the top three fastest-growing DefenceTech ecosystems globally, alongside the U.S. and Israel.
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The Ministry of Digital Transformation estimates that more than 200 Ukrainian companies operate in drones, robotics, AI, electronic warfare, and tactical systems.
Brave1 — the largest angel-stage DefenceTech investor in Ukraine
Fedorov emphasized that the government-backed Brave1 initiative remains the largest early-stage investor in Ukrainian DefenceTech.
Since its launch, the platform has:
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funded over 360 projects,
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awarded more than $7 million in grants,
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helped dozens of teams obtain certification, achieve production standards, and enter international markets.
The government is also strengthening cooperation with venture funds, including Polish and Estonian investors and several U.S. family offices.
Development of the startup ecosystem
The Ukrainian Startup Fund (USF) was established in 2019. Before the full-scale invasion, it invested $8.2 million in 352 teams, mostly through grants of $25,000–50,000.
After February 2022, the fund shifted entirely to DefenceTech, launching a grant program of up to $35,000 for defence and dual-use solutions in 2023–2024.
In 2024, USF partially resumed support for civilian innovation: the total budget of the renewed program is $2.5 million.
Market insights
According to the Ministry of Digital Transformation, Ukraine has 60 startups per 1 million people, compared with the European average of more than 500.
At the same time, Ukraine shows the fastest growth in Europe in the DefenceTech sector.
