UK-Ukraine TechExchange: helping startups scale innovation

When Russia’s full-scale invasion of Ukraine began in 2022, engineers, farmers, and tech entrepreneurs turned their tools to defence, scrambling to convert drones, develop electronic warfare (EW) systems, and build agile technologies fit for the battlefield. But whilst the urgency of war can fast-track innovation, it rarely makes for a stable business model.

This is where the UK-Ukraine TechExchange comes in – a cross-border initiative helping Ukraine’s defence and agritech startups access UK markets, funding, and production opportunities, while offering UK industry and government access to battlefield-tested technology.

Speaking to Startups Magazine, Principal and Founder of the UK-Ukraine TechExchange, Andriy Dovbenko, shares the TechExchange’s mission, initiatives, and its long-term goal of supporting dual-use technologies that can help rebuild Ukraine’s agricultural sector post-conflict.

From fields to frontlines

The programme was founded by Andriy Dovbenko, a Ukrainian agricultural entrepreneur with a background in law who had long been using UAVs in farming.

When the war broke out and civilian use of unmanned vehicles was banned, he and his companies pivoted to support Ukraine’s military. What began as a charity effort supplying drones and EW equipment to battalions evolved into direct relationships with hardware developers on the ground.

“We wanted to help the army ... and we’ve been allocating part of our revenue  from my agricultural business in Ukraine [to help]. We got some exposure to several producers of electronic warfare and drones in Ukraine. Many of them had very good businesses – but [they’re] in a very difficult situation.”

Despite having proven, high-performing defence systems, they operate in a warzone, rely on a single cash-strapped government buyer and often private donations - both retail and from businesses, and face export restrictions, all of which are red flags for international investors.

A platform for Ukrainian innovation

Living in the UK since 2020, Dovbenko used his connections and location to set up TechExchange to bridge the needs of UK defence and Ukrainian startups – whereby Ukrainian companies have access to the UK’s tech ecosystem whilst dually helping UK stakeholders tap into a stream of practical, battlefield-refined technologies.

The TechExchange currently supports a small but growing cohort of seven companies. Among them are:

  • Kvertus, Ukraine’s largest producer of electronic warfare systems
  • FoxFour and Huless, both drone developers
  • Skyeton, develops long-range reconnaissance drones
  • Transimpex, Ukraine’s oldest demining company

Each has its own path, but all face similar barriers to growth, whether that’s fundraising, export permissions, or limited resources. To mitigate these challenges, the TechExchange works to make introductions, help set up special-purpose vehicles (SPVs) in the UK, and support companies with investment decks, compliance, and communications.

For example, Huless recently secured £1 million in international investment – including from UK backers, while DroneSpace has already supplied equipment through UK Government-led initiatives.

“For a Ukrainian company to raise any money internationally, it's a great success,” Dovbenko said.

A route to sustainable defence partnerships

The TechExchange operates on a flexible basis. Startups can apply via the TechExchange website, and if they are deemed battlefield-proven and willing to collaborate, the team steps in to help. Dovbenko told Startups Magazine: “We’re not a big operation. But if we find someone interesting, we will be happy to accommodate. If we believe it would be beneficial for them to be here in the UK, then we will help.”

The benefits are two-way. UK-based companies can test their defence systems in Ukraine, while Ukrainian startups can refine their products and raise investment by establishing a foothold in Britain. Some, like Kvertus and DroneSpace, are actively exploring the possibility of setting up UK production facilities, aided by discussions with regional development authorities in the North East and Wales.

The programme also works closely with bodies like the D Group and UK MOD officials, helping Ukrainian companies understand procurement pathways and compliance requirements in the UK market.

Project Atlas: a case in point

One example of the kind of innovation the TechExchange aims to support at scale is Project Atlas. Spearheaded by Kvertus, the £103.7 million initiative will build a 1,300km anti-drone ‘electronic wall’ along Ukraine’s frontline and border areas.

This network of EW systems is designed not only to suppress enemy UAVs but to protect friendly drones – solving a critical issue, as 40% of Ukrainian UAV losses are currently due to friendly fire from their own EW systems.

The value of the technology behind Project Atlas is its affordability and adaptation for mass deployment.

“In a better world, we’d protect these systems with anti-rocket missiles. But the average battlefield lifespan of these devices is two weeks. They’re expendable. You need lots of them.”

So far, the project has raised around £10 million from Ukrainian companies and celebrities. However, international fundraising remains difficult, particularly in the UK, due to regulatory sensitivities around military-related appeals.

A matter of survival – and strategy

Although the TechExchange includes agritech in its remit, most of the current activity is focused on military innovation. This is not just a reflection of wartime needs, but also of a larger strategy – preserving the land for the future.

“If Ukraine is occupied, people do not have homes, food, or businesses. It’s the right and sensible thing for me to help, more importantly than my [agriculture] business, which would cease to exist, but for other people’s livelihoods,” said Dovbenko.

Agricultural technology is the long-term goal, especially as many battlefield innovations are likely to have dual-use applications – such as UAVs and demining systems. One of the TechExchange's whitepapers recently examined the scale of landmining across Ukraine, which poses a serious barrier to future food production.

“If the field is mined, there’s not much to raise there.”

UK funding and next steps

Recent announcements from the UK Government signal more funding for Ukraine’s defence needs, and Dovbenko hopes the TechExchange will see this translate into a broader replication of successful initiatives like the Drone Coalition for Ukraine – potentially extending procurement pipelines for both Ukrainian and UK companies.

For now however, the TechExchange continues to work incrementally – focusing on funding, partnerships, and visibility.

Final message from Dovbenko

At the heart of the TechExchange’s work is a straightforward message:

“Ukrainian startups are there. They have something new to tell. They may not be the ‘ideal’ investment targets for VCs, but their innovation and resilience are unmatched. And if you take a risk and give them a chance, you’re doing good from a humanitarian standpoint and may even stand to gain financially.”