Over the past four weeks, the Ukrainian fund WildField Ventures has received about 40 applications from Defense Tech startups, says the fund's partner and Chief Growth Officer of Dwarf Engineering, Maksym Zubenko. "80% do not meet the fund's investment strategy and will receive a rejection," he adds.

WildField Ventures is a venture fund that invests in Ukrainian and foreign Defense Tech startups at the pre-seed and seed stages. The fund's target size is up to $15 million, with investment checks ranging from $250,000 to $500,000.

Currently, the fund has raised over $1.8 million. Its focus is dual-use technologies: artificial intelligence, autonomy, software, communications, and sensors.

Why does WildField Ventures bet on components, reject 80% of DefTech startups, and look for investment opportunities abroad? Which teams is the fund looking for? And why can Ukrainian defense startups be five times cheaper than foreign analogues?

Where WildField Ventures invests

Why did you decide to focus specifically on dual-use components rather than finished products?

In the finished products market, there are many manufacturers and high competition. Often it's not only the quality of the product that decides, but also how distribution is built and who the customer is.

Finished products are mostly sold to the state. Components, such as sensors and autonomy systems, can be sold to businesses. The market is significantly broader.

Sensors and other components can be exported and sold on international markets, because the solutions can be used not only in the military sphere.

In which components do you currently see the greatest funding deficit?

Our focus is AI, autonomy, software, communications, and sensors. In these areas, it's possible to create scalable solutions that a large manufacturer cannot quickly replicate.

The main question when evaluating a startup is whether it can survive if a large company enters the same market with $5 million. We invest in these areas because such products are hard to copy. Their advantage lies in unique data, research that requires time, and integrations. If a company already works with major players, it will grow together with them. Replacing such a supplier is difficult.

You plan to invest not only in Ukrainian startups but also in companies from allied countries. Which markets are you currently considering?

We are actively looking for such companies. We are looking at the Baltic countries, Finland, Scandinavia, and Germany. These countries understand the risks of war. Therefore, their solutions are often closer to the real needs of the defense sector.

We see a big difference in the pace of work. For example, a startup from Western Europe may present a five-year development plan. They don't have a sense of danger and urgency. We don't believe in that.

And how much do development timelines differ between Ukrainian and European startups?

In areas with complex technologies, such as rocket engines, development can take years. In other niches, we expect companies to outline their plans quarterly for two years ahead.

In some niches, it's hard to predict what will be on the market in a year and a half, so building plans three years ahead is unrealistic. The pace of development is also affected by bureaucracy and partner requirements.

Global instability forces countries to support their own production. Therefore, local startups can receive support simply because they operate in their own country.

This is one of the most important drivers of development for such projects.

Many funds are looking specifically for Ukrainian Defense Tech startups. You, however, say right away that you are also considering foreign companies. Why?

It's a bet on diversity. Ukrainian startups often work on pressing problems. There is quite high competition for them.

But we can find an interesting idea at an early stage and offer it not only financing but also access to the Ukrainian market. This is beneficial for both sides. Abroad, there are research institutes and teams with expertise that may be lacking in Ukraine. They have interesting developments, but they need to be adapted to real conditions.

You said there is demand for Ukrainian Defense Tech startups. How does this affect their valuations?

Valuations of Ukrainian startups are lower because local startups have more time for development and fewer external expectations. They can gain additional advantages through local contacts, such as access to a particular country's Ministry of Defense.

I spoke with a foreign startup developing roughly the same thing as several Ukrainian companies. But its valuation was five times higher.

Among the company's arguments were proprietary technologies, speed of implementing changes, and established connections with a specific Ministry of Defense that would help them grow.

You invest at the pre-seed and seed stages. What do you expect to see from a startup at this stage?

We work with various areas: sensors, radars, and autonomy. They differ in development complexity, number of competitors, and demand.

Therefore, I wouldn't evaluate all companies solely by technology readiness level (TRL). For complex developments, a lower TRL is normal. And for simpler solutions, it's important to already have a finished product, first contracts, or confirmed interest from potential clients.

If there is no finished product yet, then you need to find three to five potential partners ready for cooperation and collect their feedback.

This will show the investor that you have studied the market, compared competitive solutions, and understand what the advantage of your idea is. Then you can explain what exactly you will be able to implement after receiving investment.

If a startup is already selling a product, we expect sales to grow approximately fourfold in a year. But absolute figures are also important. You can sell two units of product first, and then eight. That is also fourfold sales growth.

How many applications from startups have you already received? How many of them have you reviewed and screened out?

Over the past three to four weeks, we received 40 applications. We will reject 80% because they do not fit the fund's thesis. Often these are small manufacturers or individual elements that fall outside our focus.

How much WildField Ventures plans to invest

Do you plan to make more investments by the end of the year? Or