Denmark’s EIFO Invests $5M in Ukraine-Focused D3 Defence Tech Fund
The Kyiv-founded fund is emerging as a key bridge between Ukraine’s battle-tested innovations and Europe’s growing demand for next-generation defence technologies.
KYIV, Ukraine — 4 July 2025
Denmark’s state-owned Export and Investment Fund (EIFO) has committed $5 million to D3, a Ukraine-focused defence technology venture fund, marking the first state-backed investment into the wartime innovation fund and signaling growing European recognition of Ukraine’s defence tech capabilities.
Established in 2023 by Eveline Buchatskiy, Anton Verkhovodov and Elya Chiechienieva, D3 backs Pre-Seed and Seed-stage startups building technologies across unmanned systems, robotics, electronic warfare and mine clearance. The fund aims to invest in more than 30 early-stage companies and has already screened over 700 startups, with 16 investments to date. Co-investors include Sequoia Capital, Andreessen Horowitz (a16z), and Lux Capital.
EIFO’s investment, totaling just under 32 million Danish kroner (approximately $5 million), is part of a broader effort to support Ukraine’s reconstruction and to strengthen Europe’s defence and technology infrastructure. As the first government-backed institution to support D3, EIFO positions Denmark at the forefront of a growing alliance between European capital and Ukrainian innovation.
“The Russian aggression has made Ukrainian innovation in asymmetric defence technology among the most advanced in the world right now,” EIFO said in a statement translated from Danish. “Ukraine has developed and implemented new technologies and methods of fighting that are critical for both Ukraine and Europe’s future security.”
Peder Lundquist, CEO of EIFO, called the partnership with D3 a strategic investment. “In partnership with D3, we are providing equity to defence and security startups in Ukraine, receiving vital combat-proven technology in return,” he said. “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.”
Denmark’s Minister for Industry, Business and Financial Affairs, Morten Bødskov, said the move reflects both solidarity and foresight. “This not only supports Ukraine’s heroic defence of their country and their freedom, but it is also an investment in European security,” he said. “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.”
EIFO is also administering a guarantee scheme for investments into Ukraine’s defence sector with a total budget of 1 billion kroner ($157 million), and has helped finance major infrastructure projects including Ukraine’s largest wind farm.
For D3, the EIFO commitment is both financial and symbolic. “As a state-owned fund, EIFO’s backing signals Europe’s recognition that combat-proven innovation from Ukraine is vital to our collective defence,” said Buchatskiy, founding and managing partner. “This is more than solidarity — it’s building the tech backbone of a resilient, democratic Europe.”
Ukraine’s Minister for Strategic Industries, Herman Smetanin, said the investment will help Ukrainian entrepreneurs scale globally. “This is not only a contribution to Ukraine’s security, but to the shared capacity of the democratic world to respond to emerging threats,” he said. “With Denmark’s support, we can now scale these innovations for the benefit of the entire Euro-Atlantic community.”
While venture capital has often been hesitant to engage in active conflict zones, D3’s growing portfolio — and EIFO’s endorsement — suggest that Ukraine’s frontline innovation is becoming too strategically valuable to ignore.
