Why the best time to invest in Ukraine is now

The catalyst for Resist.UA came when Sulzhyk was serving on the supervisory board of PrivatBank. An engineering team building FPV drones needed to transfer money abroad to purchase components, but the bank had frozen the payment due to wartime capital controls. Rather than dismiss the request, Sulzhyk decided to verify what the team was actually constructing. He walked into a garage and found approximately ten people assembling FPV drones by hand-a scene that shocked him with its innovative potential. After confirming the team was genuinely supplying the Ukrainian military, he pushed for the payment to be released, an action that represented one of the first examples of what would evolve into Ukraine's modern defence-tech ecosystem.

Sulzhyk's thesis challenges conventional investment wisdom. Typically, venture capital flows to regions after conflict ends, assuming that stability attracts entrepreneurial activity and capital. However, Ukraine's experience suggests the opposite dynamic. The urgent military needs and immediate market validation created by wartime conditions have accelerated product development cycles and forced rapid iteration. Companies emerging from this crucible have already solved problems that peacetime startups might struggle with for years. They possess technical expertise honed by direct collaboration with military end-users and an intimate understanding of real operational challenges that their products must address.

Resist.UA's approach differs fundamentally from traditional venture capital. Rather than seeking maximum financial returns in the shortest timeframe, the fund prioritizes long-term company growth and manufacturing capacity development. This philosophy reflects the reality that defence tech companies require patient capital and deep operational expertise. The fund's supervisory approach goes beyond writing checks; it actively engages with portfolio companies to help them navigate technical challenges, scale production, and prepare for acquisition by larger defence manufacturers. This hands-on involvement is particularly valuable for early-stage teams that may have exceptional engineering talent but lack experience in business operations, fundraising, or scaling manufacturing.

For operational security reasons, a significant portion of Resist.UA's portfolio remains confidential. However, the disclosed investments reveal a deliberate focus on technologies with immediate military applications: intelligence software that processes real-time battlefield data, autonomous aircraft for reconnaissance and strike capabilities, and ground vehicles for logistics and casualty evacuation. Each of these represents a solution to problems that Ukrainian military forces face on the front lines, ensuring strong product-market fit from inception.

The acquisition of Phantom Technology by TAF Industries represents a crucial validation of Resist.UA's investment thesis. The Teslia UGV had been proven in the field, operating under real combat conditions and earning trust from the Ukrainian Defence Forces. Rather than seeking a traditional financial exit through IPO or financial buyer, TAF Industries-an established defence manufacturer-acquired the company to accelerate production and scale the platform. This type of strategic acquisition is the natural outcome for deep-tech defence companies: they require manufacturing capabilities and industry relationships that venture-backed startups typically lack. By nurturing companies to the point of acquisition, Resist.UA facilitates the transition from innovation to industrial production without forcing founders and teams to navigate the complexities of building a massive manufacturing operation from scratch.

Each portfolio company addresses specific gaps in Ukraine's defence capabilities. Farsight Vision's intelligence software solves a critical problem: integrating data from disparate sensors and systems into coherent tactical intelligence. Modern warfare generates enormous volumes of data from drones, satellites, signals intelligence, and ground observations, but converting that raw data into actionable intelligence remains a significant challenge. AI-powered systems that can process and synthesize this information in real time provide immense operational value. M-FLY's autonomous drones extend reconnaissance and strike capabilities while reducing pilot casualty risk, a critical concern for any military operating under sustained drone warfare. Phantom Technology's Teslia addresses the challenging logistics and medical evacuation problems inherent in modern conflict, where rapid casualty evacuation can mean the difference between life and death.

Resist.UA's impact extends beyond its portfolio companies. By reviewing over 600 projects and engaging with more than 100 defence tech teams, the fund has become a central node in Ukraine's emerging defence technology ecosystem. This broad engagement allows the fund to identify emerging trends, understand the technical capabilities available within Ukraine, and support a broader community of innovators. The scale of engagement-600 projects reviewed-suggests a vibrant entrepreneurial community actively working on military technology problems.

From a purely commercial perspective, investing in Ukrainian defence tech offers several compelling advantages. First, the market is real and urgent: Ukraine's military has immediate, pressing needs for innovative solutions, and successful companies have immediate customers willing to pay for proven solutions. Second, the validation is real: products that work on the front lines have passed the most rigorous test possible. Third, the talent is exceptional: Ukrainian engineers have demonstrated remarkable ability to innovate rapidly under pressure, creating solutions to problems that most militaries consider intractable. Finally, the global defence market is enormous and growing, particularly as countries worldwide recognize the importance of indigenous defence production. Ukrainian companies that successfully scale production can compete internationally, selling to NATO allies and other democracies seeking alternatives to traditional defence contractors.