Denmark’s State Fund Supports D3 with $5M for Defense Startup
The Export and Investment Fund of Denmark (EIFO), Denmark’s state-owned financial institution, has announced a $5 million investment in D3, an investment firm that backs defense technology startups in Ukraine.
- D3 was founded in the summer of 2023 with the goal of launching an acceleration program and providing capital for Ukraine’s fast-growing defense tech sector. It was one of the first foreign funds to focus specifically on defense, a sector many investors shy away from.
- The fund’s size was initially estimated at $10 million and later grew to $30 million. One of its most influential partners is former Google CEO Eric Schmidt, who has visited Ukraine multiple times and helps identify promising projects.
- D3 focuses on early-stage startups (pre-seed and seed) working on UAVs, autonomous systems, robotics, electronic warfare, demining, and more — aiming to finance over 30 startups. According to EIFO, D3 has already screened more than 700 projects and made 16 investments, collaborating with top-tier funds like Sequoia Capital, a16z, and Lux Capital.
Acting as a bridge between Ukraine, which is quickly building expertise in asymmetric defense, and international partners, D3 connects startups with capital and strategic partnerships to help scale advanced technologies. Its partnership with EIFO also creates fresh opportunities for Denmark, giving Danish companies access to new technologies, know-how, and future collaborations.
EIFO is the first state fund to back D3. Beyond this investment, EIFO is rolling out a program to guarantee investments in Ukraine’s defense industry, with a total budget of DKK 1 billion ($157 million). It has also funded projects like the construction of Ukraine’s largest-ever wind farm.
Why does it matter? European institutions usually steer clear of defense investments, focusing instead on the wider economy or humanitarian aid. EIFO’s move, as a state fund, into defense tech could signal a shift and encourage others to follow suit. More capital means local startups can grow, ramp up production, and stay competitive.
Denmark’s State Fund Supports D3 with $5M for Defense Startup
The Export and Investment Fund of Denmark (EIFO), Denmark’s state-owned financial institution, has announced a $5 million investment in D3, an investment firm that backs defense technology startups in Ukraine.
- D3 was founded in the summer of 2023 with the goal of launching an acceleration program and providing capital for Ukraine’s fast-growing defense tech sector. It was one of the first foreign funds to focus specifically on defense, a sector many investors shy away from.
- The fund’s size was initially estimated at $10 million and later grew to $30 million. One of its most influential partners is former Google CEO Eric Schmidt, who has visited Ukraine multiple times and helps identify promising projects.
- D3 focuses on early-stage startups (pre-seed and seed) working on UAVs, autonomous systems, robotics, electronic warfare, demining, and more — aiming to finance over 30 startups. According to EIFO, D3 has already screened more than 700 projects and made 16 investments, collaborating with top-tier funds like Sequoia Capital, a16z, and Lux Capital.
Acting as a bridge between Ukraine, which is quickly building expertise in asymmetric defense, and international partners, D3 connects startups with capital and strategic partnerships to help scale advanced technologies. Its partnership with EIFO also creates fresh opportunities for Denmark, giving Danish companies access to new technologies, know-how, and future collaborations.
EIFO is the first state fund to back D3. Beyond this investment, EIFO is rolling out a program to guarantee investments in Ukraine’s defense industry, with a total budget of DKK 1 billion ($157 million). It has also funded projects like the construction of Ukraine’s largest-ever wind farm.
Why does it matter? European institutions usually steer clear of defense investments, focusing instead on the wider economy or humanitarian aid. EIFO’s move, as a state fund, into defense tech could signal a shift and encourage others to follow suit. More capital means local startups can grow, ramp up production, and stay competitive.
