EIFO invests in D3 to boost Ukrainian and European innovation in defence

EIFO announces an investment of US$5 million into D3, a defence technology venture fund with a strong presence and track-record in Ukraine. The investment will boost Ukrainian and European defence innovation, funding the development and scaling of new defence technologies including drones, sensors, demining and AI solutions.

D3 acts as a bridge between Ukraine, with its growing expertise in asymmetric defence and related technologies, and its Allies, connecting start-ups with the capital and partnerships needed to scale frontier technologies. The partnership between D3 and EIFO will have additional benefits for Denmark, opening doors for Danish companies to access new technology, knowledge, and partnerships.

As the first state-backed fund to invest in D3, EIFO has demonstrated a continued commitment to Ukraine’s defence, in alignment with its mandate to support Danish and European supply chains for the green transition, defence and technology. Alongside this latest investment in D3, EIFO is operating a guarantee scheme for investments into Ukraine’s defence industry with a total budget of DKK 1 billion (US$157 million), and has secured financing for developments including the construction of Ukraine's largest ever wind energy project.

Following Russia’s invasion, Ukraine has become a hub for innovation in asymmetric defence technology. A wealth of Ukrainian early-stage companies has developed, deployed and gained deep expertise in leading defence technology innovations that are crucial not only to Ukraine’s defence, but for all allied countries. EIFO’s investment provides risk-tolerant funding to support the defence technology ecosystem in Ukraine and Europe more broadly, enabling the innovation required to stay ahead in an era of rapidly evolving warfare.

Peder Lundquist, CEO at EIFO, commented:

“Our investment in D3 underscores EIFO’s strategic objectives to support Ukraine, strengthen the Danish defence industry, and bolster European defence capabilities. In partnership with D3, we are providing equity to defence and security startups in Ukraine, receiving vital combat-proven technology in return. D3 is one of the most insightful, active and effective defence-focused investors in Europe, and we are proud to be partnering with this dedicated team.”

Morten Bødskov, The Danish Minister for Industry, Business and Financial Affairs, commented:

“Denmark stands side by side with Ukraine in their fight for freedom. We demonstrate this unwavering support once again with the investment into D3. This not only supports Ukraine's heroic defence of their country and their freedom, but it is also an investment in European security. At the same time, EIFO opens the door for Danish companies to access new technology, knowledge, and partnerships. It is an investment in the defence industry of the future, where innovation and collaboration across borders are crucial for both security and growth."

Cofounder and managing partner at D3, Eveline Buchatskiy, welcomes EIFO as the first state-owned fund to invest in the Ukraine-focused venture fund:

“We’re proud to welcome EIFO as a strategic investor in D3. Denmark has shown bold leadership in understanding how Ukraine fights – and how critical technology is to win. As a state-owned fund, EIFO’s backing signals Europe’s growing recognition that combat-proven innovation from Ukraine is vital to our collective defence. This is more than solidarity – it’s building the tech backbone of a resilient, democratic Europe.”

Ukranian Minister of Strategic Industries, Herman Smetanin said:

"We are grateful to Denmark and EIFO for this strategic investment. An investment that is paving the way for the next generation of defense technologies. This is not only a contribution to Ukraine’s security, but to the shared capacity of the democratic world to respond to emerging threats. Ukrainian engineers and entrepreneurs have proven their ability to deliver breakthrough solutions, and with Denmark’s support, we can now scale these innovations for the benefit of the entire Euro-Atlantic community."

Perfect fit for EIFO

Established by Eveline Buchatskiy, Anton Verkhovodov and Elya Chiechienieva in the summer of 2023, D3’s ambition is to fund the most promising and groundbreaking new startups in areas such as UAVs, autonomy, robotics, electronic warfare, and demining - and helping them scale to the next level for the benefit of Ukraine and Europe.

The ambition is to invest into +30 early-stage startups within a short period of time and with an already proven track record of more than 700 screenings and 16 investments with co-investors like top VC-funds Sequoia Capital, a16z, and Lux Capital, D3 looks like a perfect fit for the Danish state fund.