In Ukraine, the hum of drone engines and the sharp crackle of code replace the echoes of traditional warfare. Almost three years into the war with Russia, across the country, in makeshift labs and hastily adapted workshops, Ukrainian entrepreneurs are striving to build an ecosystem that moves at wartime speed.
From high-tech precision munitions to battlefield-ready simulation systems, the past three years have witnessed Ukraine becoming a hub for the most innovative defence technology the world has seen in decades.
And this isn’t just happening in corporate R&D departments or military bases—Ukraine’s defence tech surge is powered by a grassroots network of inventors, engineers, and investors who are all united by a single goal: to defend Ukraine’s sovereignty against one of the most formidable military powers in the world.
At a recent panel during the Invest in Bravery event in Kyiv, entrepreneurs and investors illustrated the state of play in Ukraine’s defence sector and shed light on the critical role that defence startups play on the frontline.
Accelerating tech innovation on the battlefield
The co-founder of Darkstar Coalition, Alex Kinash, emphasized the unprecedented speed of defence tech development in Ukraine. For Kinash and his organization, urgency is paramount. He stated, “We need to be doing in Ukraine is moving much faster than we are now to win. I think everyone here sees the strength of our ecosystem: startups with big ambitions are supported by a network of collaborators, all working together to help them reach the investment stage.”
As Kinash puts it, at Darkstar, progress is measured not in weeks but in overnight achievements, an approach that echoes Ukraine’s need for rapid adaptability in response to the ever-changing dynamics of modern warfare.
Kinash highlighted a distinct difference between Ukraine’s homegrown approach and foreign defence initiatives.
“You need to be in Ukraine, because otherwise, you’re not anywhere near the product iteration cycles. None of us ever expected to be building munitions or drones to defend Ukraine’s survival against Russian forces, but here we are—and we can win. A crucial part of our strength comes from the advanced defense technology we’ve developed to counter a heavily armed adversary,” he noted, pointing to the necessity for on-the-ground R&D in order to maintain a competitive edge.
However, not every defence tech project in Ukraine is deemed investable by traditional VCs; the focus is on fostering community support regardless of funding prospects, with Darkstar Coalition helping entrepreneurs with mentorship and strategic advice even if they don’t fit conventional investment models.
Shifting from volunteerism to an industry
Artem Moroz, head of investor relations at defence accelerator BRAVE1, underscored the industry’s transition from volunteer-driven efforts to a structured industry with potential global impact. Initially, defense tech startups were formed by volunteers responding to immediate needs on the battlefield.
But Moroz noted that defense tech is now becoming a formal industry, a change that is attracting international attention. The war’s dynamic nature requires real-time updates and iteration in product development, which cannot be achieved remotely. “You can’t create a product that works on the frontline if you’re based in the US and Europe, getting feedback and making adjustments every six months,” Moroz explained, stressing that R&D centers need to operate directly in the war zone to stay relevant.
Moroz advocates for a mindset shift among engineering teams, urging them to adopt a long-term perspective that includes NATO markets. This kind of forward-thinking strategy, he argued, would help Ukrainian companies maintain relevance and secure investment by demonstrating potential for broader applications beyond the immediate wartime needs.
“What’s truly important is a shift in mindset. While engineering talent is essential, it’s just as critical to start thinking like a company, because that approach enables greater impact. Developing a long-term strategy now allows us to grow faster, anticipating not only today’s frontline needs but also what will arise in the next three to six months and beyond. This forward-thinking approach positions us to compete effectively, including in the NATO market,” Moroz adds.
Dual-use technologies for civil and military progress
Brent Christiaens, co-founder of the dual-use VC fund Seven Capital, noted Ukraine’s extraordinary pace of innovation.
“History demonstrates that the most significant technological advancements often stem from the defence sector. The Internet, cars, roads, radar, GPS—these all originated in defence and transitioned to civilian use. That’s the kind of innovation we focus on. While we could look to any country for such breakthroughs, there’s no place on Earth moving as quickly or driving innovation as relentlessly as Ukraine,” Christiaens said.
By focusing on dual-use tech with applications in both sectors, Seven Capital sees the defence industry as a driver for broader economic growth, and for investors like Christiaens, Ukraine’s innovation ecosystem also presents a model of resilience and creativity under pressure.
The role of modern battlefield simulation
On the ground, training is a crucial area where technology can make a difference. Kevin Leach, founder of Sabre Training Advisory Group, a Canadian-Ukrainian nonprofit, focuses on integrating NATO methodologies with Ukraine’s battlefield experiences. According to him, traditional approaches alone won’t suffice in this conflict.
“The reality is, until now, we’ve approached this as a conventional conflict. If we continue down that path, we will undoubtedly lose. We need to shift from a boxing match to a jiu-jitsu match, and technology is one of the most effective ways to make that shift,” Leach explains.
Sabre’s work highlights the potential of battlefield simulation systems, which allow Ukrainian troops to gain real-time feedback on their strategies and tactics. This, Leach observed, can reduce casualty rates by up to 60% and create a positive cycle where better-trained soldiers are more effective and safer on the battlefield.
Building a cohesive defence tech ecosystem
Kateryna Bezsudna, CEO and co-founder of Defence Builder, shared her vision for an ecosystem that aligns government, private sector, and startup resources to support defence innovation. “We created an accelerator to help defense tech startups grow faster and more productively,” she explained.
Defence Builder’s four-month program offers guidance in government, military, and private equity sectors to help startups bring minimum viable products (MVPs) to the frontline. Her goal is to help talented Ukrainian engineers refine their pitching skills and storytelling techniques to attract more substantial investment, especially for ambitious projects like rockets and space technology.
Bezsudna also stressed the importance of software integration across various platforms, from aerial and ground to water systems, which remains an area of untapped potential within Ukraine’s defence tech sector.
Regarding the potential that the defence tech sector has, Matej Luhovy of Presto Ventures emphasized the strategic value of the industry in the context of global tensions, especially seen through the eyes of VCs such as Presto Ventures.
“The third fund, valued at $150 million, has a clear thesis. The geopolitical landscape is deteriorating, not improving. There’s a growing divide between the East and the West, and our goal is to invest in technologies that strengthen the position of the West, including Europe and NATO allies,” Luhovy said, adding that the Czech VC sees a very clear opportunity here.
He also noted the importance of creating scalable solutions that can attract substantial investment by demonstrating both military and commercial value, pointing out the importance of technologies that reduce operational costs while maximizing defense effectiveness, with applications not only on the battlefield, but across industries as well.
