Dear Investors and Friends of D3,
The demand for Ukrainian battle-tested defense technologies continues to accelerate, alongside increasing interest from European armed forces in integrating these capabilities.
At the recent European Defence Fund (EDF) Info Days in Brussels, I learned more details about the ~€1B in non-dilutive funding that is now accessible to Ukrainian defense companies. EDF is actively encouraging Ukrainian participation in the consortia forming around key defense technology challenges. This presents a significant opportunity for our portfolio companies and future investments to tap into strategic capital and partnerships across Europe.
Denmark remains at the forefront of European support for Ukraine. EIFO—the Danish sovereign investment fund—has just launched a €130M guarantee scheme to back Danish investments in Ukraine’s defense sector. The program covers up to 70% of a Danish company’s equity investment in a Ukrainian defense manufacturer, with the option to sell shares back to EIFO after a period of up to seven years.
Through our UA MoD network, we are aware that other state-backed in the Nordics are exploring similar initiatives. In parallel, Denmark plans to deploy unarmed troops to Ukraine for hands-on training in drone warfare—a strong signal of deepening collaboration with Ukraine on battlefield innovation.
We see these developments as validation of our thesis: Ukraine is not only defending Europe—it is modernizing it.
Total = 658 (+39)
We’re excited to share that Cambridge Aerospace has closed a preempted $30M round at a $75M pre-money valuation, led by Lakestar and Accel. We’re proud to co-invest alongside our LP Dr. Klaus Hommels from Lakestar. This priced round comes just two months after our initial $300K investment on a $15M SAFE cap—giving us a strong early uplift in TVPI. We are doubling down with an additional $450K investment in this round. Cambridge Aerospace is building a pan-European neo-prime, starting with drone interceptors and planning to expand into light cruise missile interceptors. Their strategic roadmap make them one of the most promising defense tech players on the continent.
A new air defense coordination center in Kyiv, focused solely on using interceptors for countermeasures, has already achieved strong results—intercepting 38 Shahed drones in its first two months. Similar centers are now being established in Kharkiv and Odesa.
Ukraine faces an average of 120 Shahed drone attacks per day. With drones flying at altitudes of ~1,000m, traditional mobile artillery systems are increasingly ineffective. The most scalable and cost-effective solution lies in interceptors priced under $10K/unit, with autonomous target acquisition and locking. The projected demand is massive—estimated at 10,000+ interceptor units per month. In addition to Cambridge Aerospace, our portfolio company Tytan Technologies is also positioned to capture share in this rapidly expanding market.