The Power of Private Initiative in Defence Tech should be Europe’s top import from Ukraine today
This guest post by Anton Verkhovodov of Ukraine's D3 Ventures makes the important point that we should learn quickly from how Ukraine has changed procurement, deployment, and use of novel defence tech
Ukraine has proven that private initiative is not just an asset but a necessity in modern warfare. Europe has to leverage it.
When Russia first invaded Ukraine in 2014, the country’s defence establishment was rigid and dismissive of anything novel. Recognising this as an existential threat, volunteers started bringing drones and software apps to help their friends fight. These were ordinary people—engineers, coders, tinkerers.
At first, the military establishment dismissed their efforts as amateurish. But when these “toys” started delivering real results—improving targeting, surveillance, and coordination—adoption spread. Volunteers started to unite in organisations like Aerorozvidka and Victory Drones, and their voice grew stronger.
Then came 2022. The full-scale invasion turned Ukraine into an R&D lab for modern warfare. The private sector poured resources into drones, AI, electronic warfare, and sensors. Early initiatives by the tech-savvy wings of the government like Army of Drones and Brave1 emerged to capture and accelerate the tech boom.
Today, Ukraine is at 1500+ teams building defence technology, 1.6M drones bought in 2024 by the government alone, $39M in R&D grants from Brave1, a growing early-stage VC scene - and of course undeniable traction in combat against a larger, better-funded enemy.
The power of private sector innovation could no longer be ignored by the government and the military – initiating grass-roots-driven reforms in acquisition and broad adoption of defence tech. In 2024, Ukraine’s MOD purchased over $2.5 billion worth of drones—a sum much larger than the entire UAV budget of NATO combined.
Why did private initiative succeed?
The response to a real, palpable threat made the need concrete. This was not a theoretical discussion—it was survival. It mobilised the best activists and the brightest minds to solve pressing challenges. At the same time, commercial technology had advanced to the point where it could be made lethal, mass-produced, and cheaper than conventional platforms. This set the stage for private actors to succeed—this pushed the government and the military to reform.
Activating private initiative in Europe
New security threats are getting larger and more real at Europe's doorstep. The traditional defence-industrial-political base is not fit for responding quickly and asymmetrically. Meanwhile, modern defence technology is exploding precisely because it has commercial roots. The world of drones, AI, cyber tools, and autonomous systems has been driven not by defence megacorporations, but by startups and “geeks”.
Low barriers to entry mean anyone with the right expertise can build game-changing defence tools.
A broad talent base outside the old defence industry allows for rapid innovation.
A broad industrial base allows for scaling at speeds governments can’t match.
Europe doesn’t have to start from scratch. It has Ukraine as a shortcut—a battlefield-proven powerhouse of defence tech solutions, policies, and doctrines. The political landscape is shifting, too. Acceptance of building in defence is rising.
What Needs to Be Done First?
Europe’s defence revival and rearming will not come from a top-down strategy. It will happen when Europe activates private sector initiative. Three key actions can unlock this:
Unlock investment. Defence tech must be included in ESG standards across regulatory levels. Many investors today are willing to fund defence tech but are bound by ESG norms of their regulators.
Unlock banking. Startups in defence tech are often flagged as high risk, making it nearly impossible to get banking services. Governments need to intervene by forcing regulatory changes and subsidising compliance work needed for banks to properly serve startups.
Unlock Testing. Creating a plethora of easily-accessible testing areas with minimal to none flight restrictions and RF spectrum limits will remove a speedbrake from the R&D process.
Private initiative will have a broad impact
Unlocking private initiative won’t just produce better solutions. The stronger the private sector push, the more impossible it becomes for governments to resist change. Here’s what happens next:
Officials have no choice but to adapt – a growing private ecosystem will put up a powerful and productive lobby effort.
A talent explosion – Early adopters who show results make the industry sexy. The best engineers, AI researchers, and cyber experts will follow the momentum.
A change in military demand – Militaries will generate consistent demand for the technology they see booming.
Domestic supply chain evolution – Once businesses recognise a real, scalable market, supply chains will shift domestically, strengthening industrial self-sufficiency.
Ukraine’s experience proves that private initiative isn’t just an advantage—it’s a survival mechanism. Europe faces a simple choice: import the lessons and momentum from Ukraine, or lose the modern great power competition. The answer should be obvious.
If Europe wants to be serious about defence, it’s time to get out of the way and let the builders build.
Anton Verkhovodov is a partner at D3 Ventures in Ukraine. In his previous life, he worked with corporate innovation, strategic foresight, and venture studios in various industries (fintech, agri, energy, SME, consumer services). Since the full-scale war broke out in Ukraine, he is committed to strengthening defence and security innovation, and rebuilding his country on the Ukrainian Dynamism principles.
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