Which Battle-Tested Ukrainian Defence-Tech Startups Land Millions From Western Backers?

Ukrainian defence-tech startups raised around $59 million in 2024, according to publicly available data. The majority—$41 million—came in the form of grants from the Brave1 defence cluster. The remainder came from external investment. But in the first half of 2025, the landscape has clearly shifted: Ukrainian defence startups are raising larger sums in single rounds worth millions of dollars.

Inside Ukraine’s defence-tech surge

Ukraine’s defence-tech ecosystem grew initially thanks to local investment funds, which supported early-stage startups to help strengthen national defense. Foreign funds followed soon after. A pivotal moment came with the launch of D3, a $30 million fund backed in part by former Google CEO Eric Schmidt.

Two key factors are fueling the growth of Ukraine’s defence-tech sector. First, strong government support: grants, testing ranges, and procurement contracts for high-quality products. The demand is broad, covering everything from drones to AI-powered systems. Many of these innovations have dual-use potential. Second, Ukrainian companies have unparalleled opportunities to test weapons in real combat scenarios. Military units provide immediate feedback on what needs improvement, giving manufacturers a feedback loop that leads to proven battlefield performance — not just theoretical results.

These advantages pave the way for global sales and the commercialization of dual-use technologies, laying the foundation for large-scale, internationally competitive businesses. The world recognizes that the way Ukraine fights today represents the future of warfare, and no one wants to be left behind.

Notably, in 2025, much of the foreign investment in Ukrainian defence tech is coming not from venture capitalists but from Western defence companies. They are coming for the know-how—establishing joint R&D centers and tapping into Ukrainian engineering expertise. Many are also launching joint manufacturing ventures. Across Europe, there is a clear understanding: the primary threat is Russia. And no one knows how to counter that threat better than Ukraine.

Western investors are pouring money into drones, ground robots, AI, and electronic warfare — the core technologies of tomorrow’s wars, already in play today. So who’s on the radar?

Who’s investing in Ukraine’s defence-tech

Quantum Systems and Frontline. German drone manufacturer Quantum Systems has acquired a 10% stake in Frontline—a Ukrainian company, with an option to increase its share to 25% over the next 12 months. Frontline is a drone manufacturing startup that has previously raised around $800,000 from Ukrainian funds. This investment lays the groundwork for deeper production, technological, and strategic collaboration between the two firms. A key priority is scaling production in Ukraine and deepening integration with the European defence ecosystem. As part of their partnership, Frontline and Quantum Systems have begun integrating European components into their robotic systems.

$3.74M investment in Tencore. Tencore develops and manufactures ground-based robots. Following its latest investment round, the company’s valuation rose to $50 million. The investor is MITS Capital, a US-Ukrainian investment firm. MITS also runs an accelerator that provides up to $200,000 to Ukrainian defence-tech startups, with the option to invest further after successful completion—Tencore being one such case. The funds will be used to expand the engineering team and build new production facilities. Tencore’s flagship product is the Ukrainian TerMIT ground robot, which can transport cargo, evacuate personnel, and engage in combat.

Trypillian and an investment from a former UK Minister. Trypillian is a UK-Ukrainian startup developing advanced combat technologies, including deep-strike systems, battlefield communications, and autonomous solutions aimed at reducing soldiers' risk while enhancing frontline combat effectiveness. The investor is Brooks Newmark, a former UK Minister for Civil Society and former Member of Parliament. The investment totaled $5 million.

Danish Terma and Ukrainian Odd Systems. While the investment amount remains undisclosed, the companies confirmed that they have launched a joint R&D initiative focused on developing a drone interceptor. Terma A/S is Denmark’s largest defence and aerospace manufacturer, producing both civilian and military systems. Odd Systems is a Ukrainian defence-tech firm specializing in drones and thermal imaging systems.

$1.5M for Teletactica. The Ukrainian company Teletactica develops electronic warfare solutions, specifically modular, secure communications systems designed to operate under intense EW conditions and without GPS. The funds will be used to scale resilient communications technologies. Seed investors include MITS Capital and Green Flag Ventures—both US-Ukrainian funds investing in the Ukrainian defence sector.

$400,000 for UADamage. The company will use the funding to scale its AI-powered humanitarian demining technology. Its software, mounted on drones, uses sensors, computer vision, and AI to detect mines and explosive devices—and map contaminated areas. In addition to improving safety for deminers, the system dramatically increases efficiency: while a human expert can clear about 100 m² per day, UADamage’s system can process up to 10,000 m².

Each of these cases demonstrates investor confidence in a wide array of defence-tech fields—not just drone production. Moreover, international companies are coming to Ukraine for its engineering talent and combat-proven products. Beyond funding, joint ventures are being formed to address the demands of modern warfare and enable tighter integration between Ukrainian and European defence expertise.