The war war has redesigned priorities for Ukraine’s tech sector. Innovative military technologies and advanced defense solutions are essential not only for the security of the country, but also to the most promising vectors for business growth. Ukrainian defense technology is tested directly on the battlefield under the most difficult conditions. These circumstances enable the products to demonstrate their effectiveness and to arouse interest of international partners, investors and allies that want to strengthen their own defense skills.
From my position in the heart of the Ukraine tech ecosystem, I saw how quickly the sector moved towards defense – and how global attention is now focusing on our innovations.
The need to counteract large Russian aggression has triggered a technological boom in the field of defense technology. Hundreds of young startups were created and attracted both Ukrainian and international investors. Over 30 countries have already expressed interest in Ukrainian defense innovations and signaled a strong export potential for local technologies.
Since the beginning of the full invasion in February 2022, the drone industry of Ukraine has turned into a structured and competitive sector of small volunteer initiatives. According to a report by Data -drivenThe drone production rose from 5,000 units in 2022 to 4,000,000 and 800 times by the end of 2024. Today the country has 500 active drone manufacturers and more than 1,000 drone models, with 80% of the FPV drone segment of four companies being controlled. Investments in the drone industry in 2024 exceeded $ 60 million, whereby the seeds are usually between USD 1 million and $ 3 million.
The 💜 the EU technology
The latest rumors from the EU -Tech scene, a story of our wise old founder Boris and some questionable KI art. It is free of charge every week in your inbox. Register now!
The State Defense Technology Cluster since the start in March 2023 Brave1 has registered over 4,600 innovations of more than 2,100 developers. Its members work on strike systems, UAVS, ammunition and advanced solutions for education, cyber security and machine. The cluster has granted more than 600 subsidies of over $ 52.4 million, which effectively acted as the largest “Angel investor” for Ukrainian defense innovations. Technologies developed with Brave1 support, such as Brave1 also facilitates the codification of the NATO standard, the battlefield test and integration into the armed forces.
Research of the Kyiv School of Economics And Brave1 shows that the investments in the tech sector of Ukraine from $ 5 million increased to $ 50 million in 2024 in 2023, with the average investment size rose from USD EUR 1 to 3 million. The sector’s profit margin is 25%, the highest worldwide – compared to 17% in NATO countries and 15% in the EU – and underlines the economic attractiveness of Ukrainian defense technology.
The quick increase in Ukraine as a global power package for defense technology does not take place isolated. Important innovations and successful startups need platforms to present their solutions, connect with investors and scale globally. That is where Es arena In LVIV – the greatest Tech event in Ukraine – plays a crucial role.
This year the IT -Arena runs from September 26th to 28th and gathered over 6,000 participants from 30 countries. At the center of the event is the Startup competitionThe country’s flagship start-up fight and the central stage for the most modern innovation inlay. Many of the defense solutions presented at the event arose during the full war when the Ukrainian innovators reacted to urgent battlefield needs. As an IT -Arena, it recognized its importance and introduced a dedicated category for defense technology and gave start -ups a platform to present their projects, attract funds and scale globally.
The participants have a unique opportunity to combine with risk capital companies, business angels and global investors-and to bring Ukraine’s solutions tested by the battlefields to international markets.
For the third time in a row, the participants of the startup competition 2025 will compete in two categories: general and defense, the latter focused on defense technology and cyber security. Defense Tech is still the most competitive category with 52 applications that reflect the growing importance of the security -oriented innovation of Ukraine. A total of 202 applications were received by both Ukrainian and international teams, including startups from Warsaw, Berlin, Tallinn, Kaunas, Minnesota, Boston, Dundee and Hong Kong.
With such a diverse pool of participants, the startup competition has also become an important attraction for investors. This year, the investment fund has achieved a record of USD $ 12.5 million, which offers start-ups considerable options.
In 2024, the participants collected over $ 2 million and demonstrated the power of the event as a bridge between Ukrainian innovators and global investors. An outstanding example is hard cat drones, a startup that develops unmanned systems for river and maritime operations. The Kamikanze and Enlightenment drones tested by the armed forces of Ukraine recorded a strategic investment from Doppel -TAP investments after they were presented in the IT -Arena 2024.
The competition also attracts a diverse list of investors, from local funds to international VCS, all striving to support the proven defense solutions in Ukraine. The average start -up assessment is $ 5 million, with the teams applying for 600,000 US dollars in investments for fuel growth.
Initiatives such as the startup competition of the IT Arena show that the Ukrainian technology not only meets the urgent war requirements – the world can also lead to defense inputs.
Comments are closed.