​Defence Industry Data: Ukrainian defence tech sees investment boom, but there’s a catch

In 2024, investments in Ukrainian defence technology experienced a tenfold increase compared to the previous year. However, substantial funding rounds necessary for transitioning from prototypes to mass production remain uncommon. This observation comes from the analytical group Defence Industry Data (D.I.D.) in a report prepared for the Ukrainian Arms Council. The document primarily consolidates previously published data, now supplemented with analysts’ insights.

According to D.I.D., private investments in Ukrainian defence tech reached $50 million in 2024. Analysts note that over 10 active funds are now investing in defence tech within Ukraine. These include Nezlamni, MITS Capital, SMRK, Freedom Fund VC, Presto Ventures, among others.​

The majority of investments are concentrated in early-stage companies, with funding rounds ranging between €125,000 and €500,000. Larger funding rounds remain rare, though the report highlights a few notable exceptions:

• Osavul — $3 million from the German fund 42CAP
• Swarmer — $2.7 million from Radius Ventures (USA)
• M-FLY — $1.3 million from Resist.UA, MITS Capital, and others.

The market dynamics indicate strong investor interest in early-stage ventures, while simultaneously highlighting the lack of structured mechanisms to support scaling. Potentially viable companies risk getting “stuck” between the prototype and mass production stages. The report also notes that startups focused on dual-use and deep-tech solutions are of particular interest to investors, due to their potential to extend beyond the military market.