**Ukraine’s Defense Tech Sector Sees Surge in Investment**
For years, Western investors have been interested in Ukraine’s defense tech sector but haven’t invested much money. That’s changing now.
A financial analysis firm called Pitchbook looked at the data and found that foreign venture capital deals with Ukrainian startups increased four times after a flat period from 2022 to 2023. The total value of these investments is still small, around $20 million according to Pitchbook and $40 million according to the Ukrainian government.
**Defense Tech Startups Get Funding**
Most of these new investments are related to defense tech. A startup called Swarmer got money for its AI drone navigation system, while Osavul developed AI to fight disinformation. Buntar Aerospace makes reconnaissance drones.
Russia’s invasion of Ukraine in 2014 and again in 2022 hurt the country’s economy, including its tech sector. After the second invasion, a new generation of Ukrainian defense startups emerged. These companies want to arm Ukraine’s military and sell their products globally after the war.
**Ukrainian Sources See Uptick**
According to Ukrainian sources, there was a significant increase in investments recently. A government fund called Brave1 provided seed money for many defense start-ups. By October 2024, Brave1 had attracted $25 million from international investors. This amount rose to $40 million by the end of 2024.
**European Investors Get Involved**
The main source of these new investments is not the U.S., but Europe. The European Union‘s interest in investing in Ukrainian defense tech companies increased after Donald Trump returned to the White House. Deborah Fairlamb, who runs a fund called Green Flag VC, said she has seen more interest from European investors.
**Ukraine Looks to Export Defense Tech**
The goal of these startups is not only to help Ukraine defend itself but also to export their products globally. Many are already being used in active battles and have potential customers in countries concerned about Russia’s behavior.
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