Dear Investors and Friends of D3,

On August 24, Ukraine will celebrate its 33rd anniversary of independence 🇺🇦

This month marks the beginning of our cooperation with Israel with our first investment in a Tel-Aviv-based company. It's time we start collaborating on product development, talent nurturing and recruiting, and supply chain with a country that has so much to offer in defense to allied nations. I want to extend a special thank you to our investor David Chinn for connecting us to the ecosystem in Israel, including the founders of our newest portfolio company. More details on the deal follow.

Deal Flow

Total = 469 (+31)

Kela is our newest investment, founded by a team of superstars.

• Alon Dror: Talpiot Elite Military Academy in Israel, tank commander, Stanford GSB, Innovation Endeavors
• Hamutal Meridor: Former GM for Palantir Israel, Unit 8200, Microsoft, Vintage Partners

Their grand vision is to create the "Android for the defense industry," an operating system to connect all data sources from all sensors. They are starting with use cases that meet specific IDF needs and will grow from there. The CEO/Founder was in Kyiv to meet companies that can be added to Kela’s platform. We are helping him scope the entire Ukrainian defense ecosystem in search of integration partners and to soon create an R&D center in Kyiv. This is a significant round for our small allocation of $200K. We could not think of a better team to start our cooperation with Israel. The preempted $28M round was led by Lux Capital, with the previous $10M round led by Sequoia. The investment case is attached below.

Kela - Investment Case.pdf

Portfolio News

Traction

• Neros and Drone Space advanced to the final stage for the UK MoD 1000 FPV drone order for Ukraine. They are among the 15 shortlisted from a pool of 261 applicants. They will showcase their products in Latvia for the final selection. Results will be announced by the end of September. This is an effective way to incentivize defense tech companies to push technical boundaries and deliver cutting-edge solutions to Ukraine. The technical requirements for this RFP were so demanding that participants worked around the clock to meet them.

UK MoD Requirements for FPV Ukraine Military Aid Order

• Buntar-1 UAV successfully completed its first combat flight under Buntar Copilot at GCS. It maintained a stable communication link 98% of the time, compared to the 30% standard for other UAVs. The mission took place near Svatove, a region known for high-level jamming. Check out the video.
• The Frontline automated turret was tested by the 3rd Assault Brigade, achieving high accuracy with 3 grenades hitting the same spot at an 800m distance. There is substantial interest in this product, showing how the frontline is being robotized daily.