Ukraine's ex-defence minister launches tech

Andriy Zagorodnyuk, Ukraine's former defence minister, is launching a technology fund to develop and procure military systems for the war against Russia. The fund, named D3, aims to raise $50 million in its initial phase, according to a report by the Financial Times.

Zagorodnyuk, who served as defence minister from 2019 to 2020, argues that Ukraine needs to leverage its technological capabilities to gain a decisive edge. He contends that the conflict has entered a phase where innovation is critical for survival and eventual victory.

Focus on asymmetric capabilities

The D3 fund will concentrate on asymmetric technologies that can be deployed rapidly on the battlefield. This includes drones, electronic warfare systems, and cyber capabilities. The goal is to bypass traditional, slower procurement channels and directly support Ukrainian defence companies and start-ups.

Zagorodnyuk told the FT that the fund seeks to create a "new history" in the war by shifting the technological paradigm. He believes current systems are often outdated by the time they reach the front lines.

Funding and operational structure

The planned $50 million raise is seen as a first step. The fund intends to operate with a venture capital model, taking equity stakes in the companies it backs. Returns for investors would theoretically come from the commercial application of successful military technologies after the war.

This approach aims to attract private capital from international investors who wish to support Ukraine. The fund's backers and specific investment targets were not detailed in the FT report.

Critics of similar initiatives have pointed to the challenges of blending investment returns with the urgent, non-commercial demands of warfare. Zagorodnyuk dismissed these concerns, stating the primary objective remains strengthening Ukraine's defence industrial base.

He emphasised that speed is the fund's core advantage over state procurement. The initiative is presented as a direct response to the rapid evolution of tactics and technology observed since Russia's full-scale invasion began in February 2022.

The former minister's push highlights a broader recognition within Ukraine that long-term resistance requires a deep integration of private-sector innovation. The war has spurred a significant domestic drone manufacturing industry, which the fund seeks to further catalyse.

Zagorodnyuk currently chairs the Centre for Defence Strategies, a Kyiv-based think-tank. His new venture underscores how former officials are mobilising networks and expertise to support the war economy. The success of the D3 fund will depend on its ability to secure commitments from wary investors in a high-risk environment.