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Three years on, Europe looks to Ukraine for the future of defense tech | TechCrunch

Feb 24, 2025 - techcrunch.com
Today marks three years since Russia's invasion of Ukraine, a conflict that has spurred significant innovation in defense technology within Ukraine. Despite the ongoing war, Ukraine has emerged as a leader in AI-enabled drone technology and has attracted Western companies and investors. The country has launched initiatives like BRAVE1 and hosted tech conferences such as IT Arena. However, a recent report by VC investor Lakestar highlights that Europe is not adequately prepared to defend against potential future threats from Russia, with defense spending having decreased by 30% since the 1990s. European investment in defense technology is increasing, with a billion dollars invested in 2024, primarily in Germany, the U.K., and France. New defense tech funds have been established, and companies like Helsing are expanding their production capabilities.

Ukrainian startups are at the forefront of dual-use and defense technology innovations, addressing challenges such as drone interception, de-mining, cyber defense, and battlefield communication. Companies like Technary, Dropla, SOC Prime, and Swarmer are developing solutions ranging from drone swarm operations to AI-driven threat detection. Other startups, such as Kraken and Skyeton, focus on hybrid drones and gliding munitions, while firms like Anima and Aspichi tackle mental health issues related to combat. These innovations demonstrate Ukraine's pivotal role in shaping future defense technologies, with European and global investors increasingly recognizing the strategic importance of supporting these advancements.

Key takeaways:

  • Ukraine has become a leader in AI-enabled drone technology and a hub for Western companies and investors, despite the ongoing war with Russia.
  • European defense spending has decreased by 30% since the 1990s, and investment in R&D is only a fraction of the US, prompting calls for increased funding in the defense sector.
  • Venture capital investment in European defense technology reached a record $1 billion in 2024, with significant investments in Germany, the UK, and France.
  • Ukrainian startups are innovating in dual-use and defense technologies, with projects ranging from drone swarm operations to mental health solutions for PTSD.
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