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Ukraine’s Defense Tech Sector Gets $5M Boost From New Investment Fund
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![Photo of Katherina Popilnichenko]( "Photo of Katherina Popilnichenko")
-c439b7bd9030ecf9d5a4287dc361ba31.jpg "Photo of Katherina Popilnichenko")
The Ukrainian accelerator Defense Builder, founded by Sigma Software, KSE, and Buntar Aerospace, has transformed into a comprehensive defense tech ecosystem and established a $5 million venture investment fund.
According to a press release from the organization on March 24, this expansion includes the acceleration program alongside a venture fund and new service areas such as market analytics, deal support, due diligence, and corporate governance.
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Initially launched in 2024, the accelerator has already supported two groups of teams. These participants received mentorship, grant funding, and the chance to verify their technologies with military personnel.
They also presented their developments to investors to secure funding for scaling their operations. A third group is currently participating in the program.
"We built the accelerator as a tool to prepare companies for the market — not only from a technological standpoint but also in terms of business capability. This refers to the ability to work with investors, make decisions in a complex environment, and scale," said Daria Yanieva, President of Defense Builder.
The ecosystem’s new venture fund focuses on early-stage defense companies, ranging from pre-seed to Series A.
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The fund began with $1.5 million in partner investments, and the maximum investment per company is $300,000. There are also plans to launch a second, larger investment fund within the year.
Beyond funding and acceleration, Defense Builder provides deal support and due diligence tailored to the specific needs of the defense sector. It also helps companies establish corporate governance that meets the standards of international institutional investors.
Research by Defense Builder, KSE Institute, and Brave1 suggests that the combined market for drones, ground robotics, and electronic warfare is valued at $4.8 billion. Total investments in the sector have risen from $10 million in 2023 to $129 million in 2025.
In February 2026, Defense Builder and the Finnish accelerator 17Tech introduced Ukrainian military officials and investors to various European and Ukrainian defense startups.
During a pitch session, startups from the 17Tech program presented technology focused on modern battlefield needs. The event emphasized the practical combat effects of these solutions rather than just the products themselves.
The session included representatives from the Ukrainian Armed Forces, including units specializing in electronic warfare, unmanned systems, and support forces from the 7th Air Assault Corps.
The Ukrainian defense tech sector experienced a dramatic shift as investments reached $129 million. A major highlight of that year was the startup Swarmer, which secured $15 million from Ukrainian and US funds for its drone swarm software—marking the largest publicly disclosed deal in the industry at the time.
Beyond these visible figures, the sector grew through "stealth mode" investments and a state-approved profit margin that allowed companies to reinvest hundreds of millions into their own research and production.
Global interest also surged, with figures like former Google CEO Eric Schmidt providing capital, while the Brave1 cluster used a grant-based system to transform early-stage prototypes into battle-ready technology.
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-111f0e5095e02c02446ffed57bfb0ab1.jpeg "Photo of Roman Kohanets")