By 2024, investments in defense-tech startups in Ukraine might total $50 million

In 2024, investment quantities in Ukrainian companies might exceed $50 million, a tenfold increase from the previous year.

Specialists from both the KSE Institute & Brave1 revealed these numbers during their investigation of the drone market in Ukraine. The report estimates that investments in defense startups in Ukrainian companies reached $5 million in 2023 and might reach $50 million in 2024. Over the course of the year, the industry's manufacturing capacity expanded dramatically from 300,000 drones to 4 million units.

The state funded the manufacturing of almost a million units in the first half of the year, thus attracting new financing sources is essential to the industry's continued growth.

It is noteworthy that Oleksandr Kamyshin, the former Minister of Strategic Industries, announced in April 2024 that just $6 billion of the $20 billion needed for armaments purchase had been set out in the state budget for 2024.

Head of the Ministry of Defense's procurement policy department Hlib Kanyevskyi stated in early August 2024 that the department had agreements with 102 local vendors, of which 45% are drone makers.

Numerous well-known investments are being made in military technology firms in Ukraine. For example, D3 Venture Capital Firm and the Ukrainian Freedom Fund (UFF) have invested around US$50 million to promote Ukrainian defense startups in Ukraine. The goal of this investment is to hasten the creation of innovative technologies that might improve Ukraine's defense capabilities.