Defense technology startup Fund D3 receives $5M investment from EIFO
In a significant move to bolster Ukraine's defense technology sector and contribute to European security, Denmark's Export and Investment Fund (EIFO) has invested US$5 million into D3, a venture fund focused on supporting early-stage defense startups in Ukraine and allied countries.
Established in 2023 by Eveline Buchatskiy, Anton Verkhovodov, and Elya Chiechienieva, D3 has already screened over 700 potential investments and made 16 investments, often co-investing with top VC funds like Sequoia Capital, a16z, and Lux Capital. The fund's strategy involves investing in Pre-Seed and Seed-stage defense technology companies, aiming to support over 30 startups in a short period.
Based in Kyiv, Ukraine, D3 operates with a strong presence in Ukraine and connects it with international partners. As a bridge between Ukraine and its allies, D3 acts as a catalyst for connecting startups with the capital and partnerships needed to scale frontier technologies.
The investment by EIFO marks the first time a state-backed fund has invested in D3. This partnership opens opportunities for Danish companies to access cutting-edge Ukrainian technologies and supports European defense capabilities. According to Morten Bødskov, the Danish Minister for Industry, Business and Financial Affairs, the investment supports Ukraine's defense and contributes to European security.
Ukrainian Minister of Strategic Industries, Herman Smetanin, stated that the investment will not only contribute to Ukraine's security but also to the shared capacity of the democratic world to respond to emerging threats. The investment is part of EIFO's guarantee scheme for investments into Ukraine's defense industry with a total budget of DKK 1 billion ($157 million).
D3 focuses on asymmetric defense and related technologies, recognising Ukraine's growing expertise in these areas. The fund supports the development and scaling of new defense technologies, including drones, sensors, demining, and AI solutions.
This investment is a demonstration of Denmark's unwavering support for Ukraine in their fight for freedom. It is also a testament to Europe's growing recognition that combat-proven innovation from Ukraine is vital to collective defense. The investment will help scale innovations from Ukrainian engineers and entrepreneurs for the benefit of the entire Euro-Atlantic community.
[1] D3 Fund Website: https://d3.vc/ [2] TechCrunch Article: https://techcrunch.com/2023/03/21/d3-fund-raises-5m-for-defense-tech-startups-in-ukraine-and-allied-countries/
Technology played a significant role in this investment as Denmark's Export and Investment Fund (EIFO) invested US$5 million into D3, a venture fund focused on supporting early-stage defense startups, primarily those developing technology in areas such as drones, sensors, demining, and AI solutions. The fund's strategy involves investing in Pre-Seed and Seed-stage defense technology companies, aiming to support over 30 startups in a short period. This collaboration between D3 and EIFO not only contributes to Ukraine's defense and security but also strengthens European defense capabilities by providing access to cutting-edge Ukrainian technologies.
