The full-scale war in Ukraine has fundamentally reshaped the country’s tech priorities. Innovative military technologies and advanced defence solutions are no longer just a matter of national security—they have become one of the most promising avenues for business growth. Ukraine’s defence tech is being tested directly on the battlefield, under extreme conditions, which allows these products to prove their effectiveness. This real-world validation has attracted international attention from partners, investors, and allied nations seeking to strengthen their own defence capabilities.
From my vantage point at the heart of Ukraine’s tech ecosystem, I’ve witnessed the rapid pivot of the sector toward defence. Global eyes are now firmly focused on Ukrainian innovations, recognizing both their battlefield value and export potential.
A Technological Surge in Defence
The urgent need to counter large-scale aggression has sparked a technological boom. Hundreds of startups have emerged, capturing interest from domestic and international investors alike. Over 30 countries have already expressed interest in Ukrainian defence technologies, signaling strong opportunities for global exports.
The drone industry exemplifies this transformation. Once a collection of volunteer initiatives, it has evolved into a highly structured and competitive sector. According to DataDriven, Ukraine’s drone production jumped from 5,000 units in 2022 to 4,000,000 by the end of 2024—an 800-fold increase. Today, over 500 manufacturers produce more than 1,000 drone models, with four companies dominating 80% of the FPV drone segment. Investment in the sector exceeded $60 million in 2024, with seed rounds ranging from $1 million to $3 million.
Read More: Ukraine Emerging as a Global Leader in Defence Technology
The state defence technology cluster Brave1, launched in March 2023, has further accelerated innovation. With over 4,600 innovations registered from more than 2,100 developers, the cluster supports projects across strike systems, UAVs, ammunition, reconnaissance, cybersecurity, and demining. Brave1 has issued over 600 grants totaling $52.4 million, effectively acting as the largest “angel investor” for Ukraine’s defence tech. Its supported technologies—trench electronic warfare systems, interceptor drones, and logistical unmanned ground vehicles—are already shaping outcomes on the battlefield. The cluster also ensures NATO-standard codification, battlefield testing, and integration into the Armed Forces, enhancing global credibility.
Investment and Economic Impact
Research by the Kyiv School of Economics and Brave1 shows a remarkable surge in defence tech investment—from $5 million in 2023 to $50 million in 2024. Average investment size increased from $500,000 to $1–3 million, and the sector’s profit margin stands at 25%, surpassing NATO countries (17%) and the EU (15%). These figures highlight both the financial and strategic potential of Ukraine’s defence technology ecosystem.
Ukraine’s rise as a global defence tech hub depends not only on innovation but also on platforms that showcase solutions, connect developers with investors, and facilitate scaling. IT Arena in Lviv, Ukraine’s largest tech event, plays a pivotal role in this process.
IT Arena: A Launchpad for Defence Innovation
Scheduled from September 26–28, IT Arena will gather over 6,000 participants from 30 countries. At its core is the Startup Competition, the country’s flagship event for emerging tech. The competition includes a dedicated defence tech category, reflecting the sector’s growing importance. This provides a platform for battlefield-tested solutions to attract investment and expand globally.
Participants connect with venture capital firms, business angels, and international investors, bringing Ukraine’s innovations to a worldwide audience. In 2025, for the third consecutive year, the competition will feature two categories: general tech and defence tech, including cybersecurity solutions. Defence tech remains the most competitive category, with 52 applications submitted this year. Overall, 202 applications were received from startups in Warsaw, Berlin, Tallinn, Kaunas, Minnesota, Boston, Dundee, and Hong Kong.
The competition is also a magnet for investors. This year, its investment fund reached a record $12.5 million, offering substantial opportunities for scaling startups. In 2024 alone, participants raised over $2 million, demonstrating IT Arena’s power as a bridge between Ukrainian innovators and global capital.
A notable example is Hard Cat Drones, which develops unmanned systems for river and maritime operations. Its kamikaze and reconnaissance drones, tested by the Armed Forces of Ukraine, attracted strategic investment from Double Tap Investments after being showcased at IT Arena 2024.
The competition draws a wide range of investors, from local funds to international venture capital firms, all eager to support proven defence solutions. The average startup valuation is $5 million, with teams typically seeking $600,000 to fuel growth.
Defence Tech as a Global Force
Ukraine’s innovation-driven defence tech sector demonstrates that necessity truly is the mother of invention. The country is producing technologies that meet urgent battlefield needs while also establishing a global presence. UAVs, electronic warfare systems, unmanned ground vehicles, and advanced ammunition solutions developed in Ukraine are already influencing military operations worldwide.
This growth extends beyond immediate military applications. Ukraine’s innovations serve as proof-of-concept for global partners and open pathways for exports. Startups are not just addressing local security challenges—they are setting new standards in defence technology, attracting international investments, and shaping the future of warfare tech.
Frequently Asked Questions
Why is Ukraine becoming a global defence tech leader?
Ukraine’s defence tech sector is rapidly growing due to battlefield-tested innovations, strong startup activity, and international investments.
How has the war influenced Ukraine’s tech industry?
The full-scale war accelerated the shift toward defence technologies, prompting rapid development of drones, UAVs, and advanced military solutions.
What role do startups play in Ukraine’s defence tech growth?
Startups drive innovation by creating cutting-edge solutions, attracting investments, and exporting technologies to global markets.
What is the Brave1 cluster, and how does it support innovators?
Brave1 is a state defence tech cluster providing grants, testing, NATO-standard integration, and support for over 4,600 innovations.
How significant is Ukraine’s drone industry?
Ukraine’s drone production surged from 5,000 units in 2022 to 4,000,000 in 2024, with over 500 manufacturers and 1,000 models.
What is IT Arena, and why is it important for defence tech?
IT Arena is Ukraine’s largest tech event, offering a Startup Competition that connects defence tech innovators with global investors.
What opportunities exist for international investors in Ukraine’s defence tech sector?
Investors can access high-growth startups, battlefield-tested technologies, and sectors with profit margins up to 25%, higher than NATO or EU averages.
Conclusion
Ukraine has rapidly emerged as a global powerhouse in defence technology, driven by innovation, battlefield-tested solutions, and a vibrant startup ecosystem. From advanced drones to unmanned ground vehicles and electronic warfare systems, Ukrainian innovations are not only safeguarding the nation but also attracting international investment and recognition. Initiatives like Brave1 and IT Arena provide crucial support and visibility, enabling startups to scale globally. As the sector continues to grow, Ukraine is not just responding to immediate security challenges—it is setting new standards in defence tech and shaping the future of military innovation worldwide.