Dear Investors and Friends of D3,
Last week, Ukraine once again demonstrated what it means to live in one of the world’s most vibrant democracies. After the passage of a law that threatened the independence of anti-corruption agencies, nearly 9,000 people took to the streets—right outside my window. It felt like stepping back in time to the early days of the Maidan Revolution: crowds of young people, driven by purpose and conviction, standing up for accountability—even in the midst of war. They sang the national anthem throughout the evening, and, as is often the case in Ukraine, the will of the people prevailed.
Now, back to the business of war.
Massive attacks continue. In addition to the ongoing campaign of terror against civilian infrastructure, Ukrainian production facilities are being systematically targeted—some even destroyed. This week, one of our drone production portfolio companies was struck and completely destroyed by three Shahed drones. A missile narrowly missed the facility. Many of you have toured this facility with us during your visit to Kyiv.
D3 portfolio company factory (confidential, no sharing)
D3 portfolio company factory (confidential, no sharing)
It’s no secret that OPSEC (operational security) remains a major challenge in Ukraine. To develop and deploy quickly, many producers prioritize speed over secrecy. They often times open their doors to international delegations, investors, vendors, military officials—anyone who might help them accelerate growth and delivery. Unfortunately, this openness, along with vulnerabilities in contracting and delivery processes, creates serious risks of exposing the locations of manufacturing sites.
I raised this concern with the Ukrainian Council of Defense Industry (UCDI), and together we’re taking action. We are now launching a secure, centralized facility to showcase leading companies and technologies from the Ukrainian defense tech ecosystem—minimizing the need for visits to actual production sites while still enabling engagement and visibility. But this is only a first step. Much more needs to be done.
Still, Ukrainian founders remain unfazed. After the attack I mentioned earlier, the founder’s response (shared below) captures the spirit of this sector and this country: resist. Always.
Exchange with D3 portfolio founder after a Shahed attack to his manufacturing facility
Total = 773 (+38)