Ukraine's Ex-Defence Minister Mykhailo Fedorov to Launch Defence Tech Fund
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Ukraine's Ex-Defence Minister Mykhailo Fedorov to Launch Defence Tech Fund

The new fund will invest in and create companies developing critical battlefield technologies.

8/31/2026
Ghita Khalfaoui
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Former Ukrainian Defence Minister Mykhailo Fedorov has announced a new defence technology investment fund aimed at bolstering Ukraine's battlefield capabilities. The initiative, revealed during a visit to Washington, will employ a unique model to develop critical military technologies. This strategic effort seeks to attract international capital and expertise to ensure Ukraine maintains a technological advantage in its ongoing conflict.


A Hybrid Investment Model

The planned fund will diverge significantly from a traditional venture capital structure. Instead of only backing existing Ukrainian defence startups, it will also create new companies from the ground up. This dual approach is designed to directly address the most urgent technological needs identified on the front lines and accelerate innovation.

Fedorov emphasized that the fund's primary mission is to build new enterprises around technologies that are critically required for current military operations. This proactive strategy aims to shorten the development cycle and rapidly deploy effective solutions. The goal is to fill specific gaps in Ukraine's defence technology arsenal with highly targeted development projects.

Strategic Technology Priorities

The fund will initially concentrate on three key areas, starting with advanced battlefield robotics. These systems are intended to reduce the direct exposure of soldiers to dangerous combat zones, enhancing troop safety and operational effectiveness. This focus aligns with the global trend towards deploying more unmanned systems in modern warfare.

A second priority is the development of jet-powered interceptor drones designed to counter emerging aerial threats. This includes a direct response to the use of advanced systems like jet-powered Shahed drones by adversaries. The initiative underscores the importance of maintaining air superiority through continuous technological advancement and adaptation.

The third focus area involves creating low-cost missiles that incorporate artificial intelligence. This project aims to deliver precise and affordable munitions capable of enhancing Ukraine's strike capabilities across various scenarios. The integration of AI is expected to improve targeting accuracy, adaptability, and overall mission success rates on the battlefield.

Securing International Partnerships

To bring this vision to fruition, Fedorov is currently in Washington engaging with key international stakeholders. His agenda includes meetings with venture funds, technology entrepreneurs, and established companies that could become vital partners. These discussions are the first step in building a global coalition to support the fund's ambitious goals.

The overarching objective, as stated by Fedorov, is to attract international capital and expertise to fuel technological creation within Ukraine. The next steps involve assembling a dedicated team, finalizing the fund's operational model, and launching its initial projects. This collaborative approach is deemed essential for achieving victory in each subsequent technological cycle of the conflict.


This new defence technology fund represents a forward-thinking and strategic effort to enhance Ukraine's sovereignty through technological superiority. By blending domestic ingenuity with international investment, the initiative aims to create a sustainable pipeline of advanced military solutions. The project's success could prove pivotal in shaping the outcome of future conflicts and ensuring the nation's long-term security.

Source: Financial Times