Ukrainian defense tech accelerator Defense Builder launched an investment syndicate for defense tech startups, starting from a $1000 minimum investment.
The founders of the accelerator, Sigma Software Labs, Kyiv School of Economics (KSE), and Buntar Aerospace, aim to raise funds from ordinary Ukrainians and citizens willing to scale Ukraine’s defense innovation.
According to the founders, it’s challenging for defense tech startups to find financing at the early stage. The launched initiative is meant to attract the needed financing and scale Ukraine’s defense efforts.
“For the first time, it’s possible to do this together – invest in vetted defense startups with small tickets and share in their future success,” Daria Yaniieva, investment director at Sigma Software Labs told The Defender Media.
The vetted technology startups in their portfolio were evaluated and approved by analysts evaluating the investment projects.
Anyone willing to invest in Ukrainian defense tech startups can fill in the application form on the accelerator’s website and wait for a reply and feedback. The platform is in the beta mode and will be officially launched soon, the founders told Defender media.
After passing a verification process, potential investors will gain access to investments in drones, air defense, electronic warfare, and demining startups. They can also participate in funding rounds alongside experienced investors. The majority of funds raised will be allocated toward scaling production and expanding local teams in Ukraine.
The financial model used by Defense Builder is syndicated investment, or an investment syndicate, which allows multiple investors to join their forces and fund projects that one investment fund or individual investor cannot due to limited financial capacity.