Darkstar Launches €25M Fund to Back Ukrainian Battlefield-Tested Defense Tech

KYIV, Ukraine — 9 July 2025

Darkstar, the defense-focused investment firm founded by Estonian entrepreneur Ragnar Sass, has announced the first close of a €25 million pan-European fund targeting early-stage startups with technologies proven on the battlefield — many of them tested in Ukraine.

The firm has secured €15 million in initial commitments and plans to complete its €25 million target within the next six to 12 months. Darkstar typically writes checks of €500,000 to €1 million for pre-seed and seed companies developing combat-tested systems, particularly those already supporting Ukraine's defense.

Unlike most European funds that require dual-use applications, Darkstar focuses exclusively on military technologies. The firm also provides operational support beyond funding, helping Ukrainian startups establish compliant entities in NATO countries to access European defense procurement processes and grant opportunities.

Darkstar positions itself as more than a traditional investor, describing its approach as ecosystem building with battlefield validation at its core. The firm says a majority of its pipeline is closely connected to real battlefield conditions, with products already deployed by Ukraine's elite brigades serving as critical evaluators of every portfolio company.

The fund has already made two investments in Ukrainian-Estonian startups. Deftak, which raised €600,000, develops modular munitions that convert reconnaissance drones into precision strike platforms, even in environments where GPS is unavailable. Farsight Vision, another portfolio company, provides geospatial intelligence tools and 3D mapping software tailored for drone operations.

According to Darkstar, Ukraine's decentralized command structure enables elite brigades to adopt new technology rapidly, providing valuable battlefield validation and operational insights. Many of the Ukrainian startups in its pipeline have built viable products with minimal capital during wartime, with a significant percentage led by women founders.

To strengthen this feedback loop, Darkstar runs Future Army Bootcamps — intensive, five-day programs hosted in Ukraine that bring together military advisors, founders, and technical experts. The next bootcamp will be held in Kyiv this summer, offering companies field-testing opportunities and combat validation.

Darkstar sees itself not just as a fund, but as an ecosystem builder, backed by more than 30 founders and investors from Estonia, Germany, France, the UK, the Netherlands, the Czech Republic, and Ukraine. Its largest limited partner is Estonia's sovereign defense investor, SmartCap, which contributed €10 million to the fund. The firm requires portfolio companies to establish European operations rather than remaining exclusively Ukraine-based.

The firm's leadership includes Sass, former Wise executive Kaspar Gering, NATO cyber defense expert Mart Noorma, and German-based general partner Philip Jungen. The team also maintains an on-the-ground presence in Ukraine.

Darkstar focuses on technologies for autonomous systems, electromagnetic warfare, communications, cybersecurity, air defense, and intelligence — sectors it sees as essential to modern combat and under-served by traditional defense contractors. The firm believes its startups could become strategic acquisition targets for established defense primes or grow into standalone defense companies as NATO-aligned governments increase procurement of rapid, battlefield-tested solutions.