Dear D3 Investors,
The past weeks have brought the harshest conditions we have faced at our Kyiv office since the beginning of the full-scale invasion. Unfortunately, this time the reports are not exaggerated. We have been experiencing extended blackout periods, operating through temperatures as low as –20°C without heating, and at times without running water. According to Ukraine’s military intelligence (HUR), further attacks on nuclear power distribution infrastructure are expected, which could reduce national energy availability to less than half of what is required.
Despite these conditions, we continue to move forward.
We are proud to share our Year 2 Impact Report, which reflects meaningful progress and tangible results under extraordinary circumstances.
IMPACT REPORT: Full PDF attached
D3 Impact Report Results Year 2
The growth across our portfolio has been significant: funds raised increased 112×, revenues 11×, and full-time employees 6×. Most importantly, impact at the frontline grew 20×, measured by products delivered to Ukraine’s defenders.
To date, D3 portfolio companies have delivered more than 16,000 units of mission-critical products to Ukrainian warfighters, generating nearly $500 million in revenues and raising $347 million in capital.
We also have major news to share. 🔥
In December, our portfolio company Frontline Robotics, together with Germany’s Quantum Systems, announced the creation of Quantum Frontline Industries (QFI) — a German-Ukrainian joint venture that will establish Europe’s first fully automated, industrial-scale drone production line dedicated to the Ukrainian Armed Forces. Quantum Systems will provide the industrial infrastructure and manufacturing operations, while Frontline Robotics contributes licensed designs, training, and full lifecycle support in line with NATO standards.
This milestone validates a core belief behind D3’s mandate: that Ukraine’s defense-driven innovation can reach global markets through deep partnerships with leading Western companies. D3 was the first — and for the first year, the only — investor in Frontline Robotics. The team chose a technically ambitious path, developing critical components entirely in-house, including their proprietary video link. Even for global leaders such as DJI, capabilities like these took years to perfect.
The journey was not without challenges. At times, we supported the company in unconventional ways, including extending a short-term loan (since repaid in full). Today, Frontline Robotics employs 338 Ukrainians in Kyiv, building world-class defense technology under wartime conditions.
Further details follow below on Frontline’s recently signed $128.2 million contract with the German government for military aid to Ukraine 🚀
Total = 906 (+25)
TYTAN TECHNOLOGIES
D3 Investment: $621K (pro rata) at a $140M pre-money valuation
Round: $35.7M Series A
Round Leads: Armira and the NATO Innovation Fund (NIF)
Our partnership with Tytan has been a long and deliberate journey. Given the central role of air defense over the past two years, we have worked closely with the team to accelerate their path from development to combat deployment.