The founder of miltech startups TheFourthLaw and Odd Systems, Yaroslav Azhnyuk, drew attention to the words of American Pentagon officials about the emergence of a «Defense Valley» of startups in Ukraine. According to him, they do not receive enough investment.
The founder of miltech startups TheFourthLaw and Odd Systems, Yaroslav Azhnyuk, drew attention to the words of American Pentagon officials about the emergence of a «Defense Valley» of startups in Ukraine. According to him, they do not receive enough investment.
«I am glad to see that the idea of a Ukrainian „Defense Valley“ has taken root not only in Ukraine, but also in the United States. I first voiced this idea at last year’s IT Arena in September, and since then, together with a group of like-minded people, we have been systematically working to promote Ukraine as a world leader in defense innovation — both at the state level and in the private sector», — Azhnyuk wrote on his LinkedIn.
In his post, he refers to a WSJ article that quotes US Defense Secretary Pete Hegseth.
«Drones are the biggest battlefield innovation of the last generation, accounting for the majority of this year’s casualties in Ukraine. Our adversaries produce millions of cheap drones every year», — Hegseth noted.
It also mentions the words of US Army Secretary Daniel Driscoll, who previously stated in Congress that the Armed Forces of Ukraine have the most experienced military in the field of unmanned systems and the «Silicon Valley of warfare.»
However, according to Yaroslav Azhnyuk, the amount of private capital available to Ukrainian defense companies is still insufficient. He noted that over the past 3.5 years, Western private investors have invested less than $50 million in Ukrainian defense companies, while European defense startups have raised about $1 billion euros in the first half of 2025 alone. American miltech startups have raised over $70 billion in 2022–2023 alone.
«Those investors who are the first to overcome the barriers of ignorance, doubts, and legal uncertainty will be rewarded. Ukrainian politicians and entrepreneurs who help break down these barriers will receive political capital and attract financing,» Azhnyuk believes.
He added that this is only the beginning of «global rearmament and a revolution in the field of autonomous robotics.» Last year, Yaroslav Azhnyuk already drew attention to the small amount of foreign investment in Ukrainian defense startups .
«My colleagues and I estimated that over the past 2.5 years, private international investors have invested about $20 million in Ukrainian defense-tech developments. This is less than in the Petcube company, in which $25 million was invested over a longer period of time. This is a company that chased cats around the house with lasers,» the entrepreneur said.
