UK–Ukrainian startup Offset Labs raised over $1M to build AI models for defence industry

Offset Labs, a startup founded by Ukrainian engineers to develop AI solutions for the defence sector, has raised more than $1 million in funding. The founders told Defender Media that $330,000 came from angel investors last year, and the company has now closed a $700,000 pre-seed round led by Archangel Ventures, with participation from Amadeus Capital Partners and Seven Capital.

Offset Labs is building an AI lab dedicated to the defence industry of NATO countries and their allies. The company develops and deploys specialised artificial intelligence models for signal and voice processing in operational environments.

Founded in 2024 by three young Ukrainian engineers — Denys Budnyk, Borys Nadykto, and Andrii Yakovyna — Offset Labs is led by CEO Borys Nadykto, who previously worked as an AI Scientist at Amazon and Twitch. Budnyk has experience at Volkswagen Group, while Yakovyna worked at EPAM Systems and the global IT company Itemis.

“Artificial intelligence offers the chance to create a qualitative advantage in defence and to help the free world consolidate its technological leadership. But AI’s very nature requires scaling data, talent, and infrastructure. That is why Offset Labs exists — to unite deep AI innovation for defence customers under one roof, ensuring Western leadership in this critical domain,” says Borys Nadykto, CEO of Offset Labs.

The lead investor in the pre-seed round was UK-based Archangel Ventures. “Offset Labs represents the best of European defence innovation: tenacious, mission-driven founders solving real critical needs with technology that can provide military superiority,” comments Nicholas Nelson, General Partner at Archangel.

Also participating in the round was Amadeus Capital Partners, one of Europe’s leading funds investing in deeptech. Amadeus’ Investment Manager James Baker says: “They have established themselves as true innovators in developing specialised AI-driven solutions for defence and are operating at the lightning speed demanded by today’s dynamic geopolitical environment.”

For Seven Capital, a Belgium-based fund focusing on defence and dual-use technologies, the deal with Offset Labs marks its first portfolio investment. “We are pleased to begin our investment journey with a company founded by three Ukrainians who are working on implementing artificial intelligence in the defence sector,” said Andriy Kolodyuk, Partner at Seven Capital.

Offset Labs is headquartered in London, with part of the team based in Kyiv. The newly raised funding will be used to expand the team and strengthen R&D. Defender Media will soon publish a detailed report on the company’s upcoming solutions.