Hi Eric,
It was good to see you last week. We are sending our quick update with a small delay because we wanted to include the portfolio companies' OKRs for our inaugural batch. They have completed a whole quarter of acceleration with us. In general, we are pleased with the results. Most companies had substantial progress against program OKRs.
We are organizing a major investor event in May. We are inviting all active defense investors from the US and Europe to come to Kyiv for a 3-day immersive visit. We hope to be the catalyst for a major boost in interest and investment in tech that works for Ukraine. Attached please see details. You are all invited!
Total = 354 (+18)
We would like to add to our portfolio a navigation solution for GPS-denied zones. There is an urgent need for such capability to be added to mid-long range drones in particular. We are now deciding between an American company (Theseus, accepted into Y Combinator) and a Ukrainian one (Norda, MoD hackathon winner). Our associate Taras has created a landscape analysis of this market. There are a few competing solutions in R&D stage but only one we know to be combat tested (Frontyr). Time to market is key and we want to back the ones who have the technical chops to run the fastest.
We are looking into creating a scout program and dedicating a small portion of the fund to it. This would mean going even earlier into companies with a smaller check of up to $50K to fill the investment gap of the ideation stage. Brave1 has been active in this stage with very positive results, but funding from them has been unreliable. The scout program also gives us a chance to date these companies before getting married. We often see companies that look somewhat promising but have a major team gap. Having some funding would give them time to address these gaps before we come in with our standard offer and the acceleration program time commitment.
D3 Award from the 3rd Assault Brigade
We are more active in fundraising and have interest from a couple of potential LPs. As we observe market dynamics, we understand that we need to be signing larger checks. Valuations are going up with demand and the fact that most companies have a hardware component and need more funding. As we increase the average check size, we need to increase the size of the fund to maintain the same level of diversification and risk profile. Here is our new deck and data room. We would be happy to take intros from your network.
We are back to frequent missile/drone attacks in Kyiv. Last week, a drone factory that is within walking distance from our office was hit. We were there today and they are back in business. Nothing stops Ukrainians!
Nearby Drone Factory (Frontyr) After Missile Attack in Kyiv
Nearby Drone Factory (Frontyr) After Missile Attack in Kyiv