· EIFO, the Export and Investment Fund of Denmark, is the first state-backed fund to invest in D3
· The investment will support the continued development of the Ukrainian and European defence technology ecosystems
· D3 is advancing early-stage defence start-ups in Ukraine, providing growth capital to develop and scale new technologies
EIFO, the Export and Investment Fund of Denmark, 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.”
Founding 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.”
Ukrainian 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.”
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.
About EIFO and its engagement in Ukraine
EIFO is the national promotional bank and export credit agency of Denmark combined in one financial institution. Active in over 100 countries, and with a total business volume of more than 170 billion DKK, EIFO provides financial solutions for Danish companies and their global partners, while also investing in startups and funds.
We exist to open doors for Danish global business, accelerate the green transition, promote new technologies and develop the Danish defence industry. With our willingness to take risks in financing, EIFO paves the way for those who dare to think big.
With a total capacity of DKK 6.6 billion, EIFO has a strong presence in Ukraine. Activities include financing the reconstruction of business and infrastructure, as well as defence investments.
Uniquely, EIFO as the Danish ECA offers a 100% guarantee in connection with trade with Ukraine, which means that trade happen despite war and risks.
EIFO’s new equity investment guarantee of 1 billion DKK also makes it possible for Danish companies to invest in Ukrainian defence companies with 70% risk coverage, partly to support the Ukrainians and partly to give Danish defence companies access to current Ukrainian innovation.
EIFO is currently directly involved in 19 projects totaling DKK 3 billion. The projects are located in large parts of Ukraine and are distributed in agriculture, wastewater, drinking water, construction, and industry.
With a guarantee of 2.85 billion DKK, EIFO has secured financing for the construction of Ukraine’s largest wind energy project ever, Tiligul. Using Vestas wind turbines, the completed wind farm can ensure electricity for 900,000 households and will have a total capacity of 498 MW, making it one of Europe’s largest onshore wind farms.
EIFO still has a significant amount available for activation of projects in Ukraine, where EIFO has local representation in Kyiv. EIFO is currently looking at 25 new cases, the total scope of which is more than 3,4 billion DKK.
See more at: www.eifo.dk/en/
About D3 – For Founders who Dare to Defend Democracy
D3 is an early stage defence technology venture fund established in 2023 by Eveline Buchatskiy, Anton Verkhovodov and Elya Chiechienieva with the purpose of funding innovative founders in defence tech who can help protect Ukraine and strengthen the security in Europe.
D3 plays the role of a bridge between Ukraine, with its growing expertise in asymmetric defence and related technologies, and their Allies, who are equipped with more capital and can be partners for frontier technologies.
The fund’s strategy involves investing in pre-seed and seed-stage defence technology companies located in Ukraine and allied countries.
For companies originating in Ukraine, D3 offer support in establishing a business foundation for global growth. For companies coming from Allied countries, D3 creates opportunities for soft-landing in Ukraine’s tech ecosystem and defence sector.
D3 plans to invest in +30 companies.
See more at: https://d3.vc
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