D3 Update, June 10, 2024

Dear Investors,

We are back to blackouts in Ukraine with periods of 7+ hours without electricity. Our office is fully powered by a generator so we keep working at the same pace. Mobilization continues to be a major topic with several adjustments to the law and phases of implementation. It is hard to keep up. We have decided to legally transfer our team members Anton and Taras to one of the portfolio companies which has the critical enterprise status for the purposes of booking so they are not drafted. This process is not without risks of mobilization. We are working closely with the Ministry of Strategic Industries to make it safe.

Deal Flow

Total = 398 (+7)

We had a busy conference week. I attended the first ever

NATO-Ukraine Defense Innovators Forum

that took place in Krakow. It was an opportunity to meet some of the Ukrainian teams operating outside Ukraine, including FoxFour, a high-end last mile targeting company we had previously extended an investment offer to but they decided not to bring external capital at that time. They are now interested and we are back in diligence. They are the only team we know to be working on a much more sophisticated version of LMT, which extends the range of autonomy to 300m from target. Most other players use Raspberry-pi and are limited to 100m. Based on my recent conversations with the military, Russians are jamming even the 700 MHz frequency. The extended range for terminal guidance is now a must.

In addition, in talking to the military last week, we learned:

It is necessary to supply the bomber and kamikaze drones turnkey, with the warhead as part of the kit. Typically, brigades keep their own warhead warehouse in loco at the frontline. They themselves build the combined drone+warhead kit through very unsafe methods. During the major enemy offensive in Avdiivka, the local warehouse caught on fire and for 3 days the AFU had no munitions at all for the drones. Our portfolio company Neros has partnered with a top US warhead manufacturer and together they have developed the entire kit which can be exported to Ukraine to be filled with the explosives. They have perfected every aspect of the integration and ignition, which is not trivial.
companies which obtained the largest FPV drone government contracts (TAF and Skyfall) have been able to scale to the tens of thousands with huge compromises to quality. There are up to 70% bad products in recent deliveries. This is particularly problematic in the frontline areas like Kupyansk, where pilots are being asked to get ever closer to the enemy and as close as 800m away. There is no time to switch to another drone if the first drone doesn't work.

Below are the drone models we currently have in our portfolio.

D3 Portfolio ISR Drones

Class	Company	Product	Type	Range	Battery life	Comms	Navigation	Camera	Price	Other features	Stage
1 class (<30 km)	Frontline	Linza	Copter	7 km	40 min	2 bands Encrypted FHSS	basic GNSS	20x optical zoom	$3,000	On Hold	Polygon proven
	Drone Space	Banderyk	Copter	8 km	45 min	Basic	basic GNSS	320x240 IR camera + daytime camera	$2,300	-	Battle proven
	Highcat	HCI	Copter	-	69 min	Microhard or Doodle labs	600W jamming resilience at 100m antenna	30x optical zoom	$24,000	-	Polygon proven
2 class (200 km)	Airlogix	Gor	Fixed-wing	100 km	150 min	FHSS, AES 256 encryption	GNSS by NovAtel. Hard to jam.GPS alternatives in testing.	Nextvision Raptor: 40x optical zoom, IR camera	$60,000	-	Battle proven
	Buntar	Buntar One	Fixed-wing	80 km	N/A	Silvus	Optical navigation in R&D	N/A	$80,000	Smart mission planning software	In R&D
3 class (>200 km)	-	-	-	-	-	-	-	-	-	-	-

D3 Portfolio Strike Drones

Class	Strike type	Company	Product	Type	Range	Payload	Battery life	Comms	Other features	Homing	Price	Stage
Mortar (FPV)	Kamikaze	Drone Space	Banderyk-K	Copter	8 km		30 min	Analog	-	FPV	$750	Battle profen
	Kamikaze	Neros	N-1 Archer	Copter	16 km	2 kg	15 min	Analog, encrypted, variable frequency	Custom frame	FPV	$585	Battle profen
	Kamikaze	Highcat	HAWK	Copter	8 km	2 kg	?	Digital	Last mile targeting	FPV	$1,500	Polygon profen
	Bomber	Drone Space	Great Banderyk	Copter	8 km	-	30 min	Analog, or digital, encrypted	-	Camera + GPS	$15,000	Battle profen
Artillery (lancet)	Kamikaze	Airlogix	ALM-5	Fixed-wing	150 km	5 kg	-	DTC	-	Coordinates, target locking (Auterion), emission seeker, laser.	COGS $12,000 - 15,000	Combat trial
Long range (shahed)	Kamikaze	Airlogix	ALM-50	Fixed-wing	2000 km	50 kg	-	-	-	Coordinates	COGS $100,000	Concept

D3 Portfolio c-UAS (Interceptors)

Class	Company	Type	Range	Payload	Comms	Homing	Price	Stage
c-UAS	Tytan Technologies	Fixed-wing	N/A	0.8 kg	N/A	RF + CV	N/A	R&D

Portfolio news

Drone Space has signed a major OEM/white labeling contract with Helsing for ground stations that will be part of Helsing's overall product offering to Ukraine. Drone Space's ground station is becoming ever more popular among all drone producers;
Neros CEO/Founder has visited Ukraine and delivered his FPV drones to 10 military units for testing with great success! The quality of his proprietary components show excellent results during field deployment. They started the certification process with the MoD. See the video of Soren flying the drone at the polygon. It is always fun to be around a world drone racing champion.