Today marks three years since Russia's illegal invasion of Ukraine, and despite the ongoing conflict, Ukraine has made remarkable progress in defense technology, particularly in AI-enabled drone technology. The country has established a defense tech initiative called BRAVE1 and has hosted tech conferences like IT Arena, showcasing its resilience and innovation.

Ukraine is now a leader in AI-enabled drone technology, attracting Western companies and investors who are keen to support the country and Europe. However, a recent report by VC investor Lakestar warns that Europe is facing its biggest threat in decades, with Russia expected to rebuild its army in 2-8 years. European NATO allies are not doing enough to build a credible deterrent, and defense spending has decreased by 30% since the 1990s.

Lakestar's Klaus Hommels emphasized the need for European investment in the defense sector, stating that entrepreneurs need to see funding available, and success stories are crucial to drive growth. Fortunately, this appears to be happening, with European defense Primes surging, and European VCs investing in defense technology. In 2024, a billion dollars of venture capital was invested into European defense technology, a five-fold increase since 2018.

Specialist defense tech funds, such as the €1bn Nato Innovation Fund and the Estonian SmartCap €100m defense fund, are also emerging. Helsing, a UK/German defense tech startup, is producing strike drones at volume and plans to build multiple factories around Europe. To invest in the right technology, Europe will need to look to Ukraine, where future wars are being fought, and innovative solutions are being developed.

TechCrunch recently reached out to Ukrainian dual-use and defense tech startups, and the responses were impressive. Companies like Technary, Dropla, SOC Prime, Swarmer, Kraken, Skyeton, Ailand Systems, Anima, Aspichi, FuelWell, Laser Guard Systems, HIMERA, Strategy Force Solution, Terminal Autonomy, Buntar Aerospace, NORDA Dynamics, Clarity, OpenMinds, TELETACTICA, ARMOR, Farsight Vision, Ark Robotics, Vidar Systems, and Biostream are making significant strides in AI-enabled drone technology, de-mining operations, cybersecurity, and more.

These startups are not only developing innovative solutions but also attracting funding from investors. For instance, SOC Prime has raised $11.5 million, while Swarmer has secured $3 million. HIMERA has received $1.2 million, and Buntar Aerospace has raised $3.2 million.

The emergence of Ukraine as a leader in AI-enabled drone technology is a testament to the country's resilience and innovation. As Europe faces growing threats from Russia, it is crucial that European NATO allies invest in the right technology and support startups like those in Ukraine. The future of European security depends on it.