Deal: DarkStar
Overview
Darkstar is the fund that is aimed to kickstart the Defence Tech ecosystem. Focus is mostly on autonomous systems, air defence, communication systems, cyber security, sensors, surveillance & intelligence, and electromagnetic warfare.
Prior to the fund, same people (Help99.co) have delivered to Ukraine:
- 358 pickup trucks to Ukraine,
- 454 FPV drones,
- 236 other drones,
- 110+ jammers
Total raised ca.6.5 for the initiative prior to the fund.
Network of 150+ military units in Ukraine. Team of 8 in Tallinn & Kyiv.
The hypotheses of the fund are:
- National security has never seen momentum like in 2024.
- The Ukraine war has changed modern warfare forever.
- NATO countries are committed to investing €100+ billion to rebuild their armies.
- Government procurement will adapt to the new reality and open up for cheaper, cost-effective products.
- Prime contractors cannot address the need for electronic warfare (EW) products alone.
- Demand for fully EU component-made products is growing.
- The M&A market will heat up over the next 1-4 years.
- Ukraine alone has 2000+ defense tech products and teams.
- Over the next 12 months, 10+ new defense tech funds will emerge in the EU.
Backstory
This is the initiative of Ragnar Sass, who is well know for founding several successful companies, most notable of those being Pipedrive.
Since the beginning of the war in Ukraine, he has been in the frontlines of assisting Ukraine by collecting donations and organising several fundraisers.
He is now launching the Defence fund and the lead got to the fff.club via our member Erik Kaju.
Key info
Team:
- Ragnar Sass GP - fundraising, investing - Tallinn, EE Pipedrive co-founder, angel investor
- Philip Jungen GP - legal, operations, fundraising - Cologne, GE Chairman German Red Cross Pension Fund, Kauffman Fellow Class 26, FinTech Operator, ex-PwC
- Kaspar Gering Tech Partner - Tallinn, EE Director of Engineering @ Wise, angel investor
- Alex Kinash Partner - Kyiv, UA
- Alina Kizlevych BootCamp Kyiv, UA
- Anastasiia Slipets Bootcamp Kyiv, UA
Summary:
- €15 mil (hard cap €20) Defence Tech early stage fund
- First investments in Q3 2024
- First VC not excluding “single use” applications
- Focus primarily on Ukraine & CEE
- Up to €1 mil per company for 10-15% equity
- Ca. 20 companies
- Speed - Making first 10 investments in the First 10 month
- PROGRESS - 15 prolific Founder Operator commitments
For investors:
- fff.club allocation: min.300k€
- Minimum ticket: 10 000€
- Fund fees: 2% management fee, 20% carry
- fff.club fees: 7% fee from the amount