Ukrainian defence startups are on track to attract up to $50mn in investment this year, a significant rise from $5mn in 2023, according to a study by the Kyiv School of Economics (KSE) and the Brave1 defence innovation platform.

The surge in funding reflects growing investor confidence in Ukrainian defence technology. The average investment round has risen from $500,000 in 2023 to between $1mn and $3mn this year, indicating a stronger belief in the potential of Ukrainian developers.

The production capacity of the defence sector, particularly in unmanned aerial vehicles (UAVs), has also seen dramatic growth. Ukrainian manufacturers produced 300,000 drones in 2023, and that figure is expected to soar to up to 4mn in 2024. However, the focus has shifted from mass production to enhancing efficiency and integrating the latest technological advancements.

"While investment is increasing, more is still needed to fully realise the sector's production potential," the study noted. In the first half of 2024, the Ukrainian government financed the production of approximately 1mn drones, but additional funds are essential to continue this growth trajectory.

More than 2,800 innovative projects from over 1,200 manufacturers are now registered on Brave1, highlighting the expanding role of Ukrainian startups in defence technology. Key trends within the drone sector include developments in computer vision, swarm technologies, and advanced navigation and communication systems.