Juggling two jobs is hard work.
Its particularly hard work when one of the jobs is in a warzone.
But for Ivan Kaunov, the roles are complementary.
As the CEO and co-founder ofBuntar Aerospace, Kaunov develops drones for long-range flights.
As a member of the Ukrainian Armed Forces, he flies drones on combat missions.
the 33-year-old tells TNW on a video call from aclassified military facility.We have the fastest feedback loop ever.
The startup now wants to scale production for military reconnaissance.
Beneath the seas, theyve sunk warships in occupied Crimea.
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The war in Ukraine hasushered in a new era of aerial conflict.
Its also ushered in a new wave ofdronestartups.
In the twoyears under Russias full-scale invasion, Ukraine has relied heavily on UAVs built overseas.
Chinas DJI dronescontinuously hoverover the heads of soldiers.
Turkeys Bayraktar machines are so popular that theyve inspired aviral song.
These vehicles have proven powerful but they come with baggage.
Deliveries to a country under invasion are often complicated.
Demand outstrips supply and foreign manufacturers can have conflicting alliances.
Local production can offer safer, cheaper, and faster tech.
Kyiv has responded by ramping up investment in domestic UAVs.
In 2024, the country aims to produce 1 million of them.
These numbers are driving exponential growth in UAVstartups.
Just a year earlier, there were only seven.
One startup launched during the war isCelebra.
The company develops a varied fleet of drones, fromfixed-wingers for surveillance to quadcopters that strike targets.
Celebraalso brings military experience to the business.
Then we joined forces with guys who already had experience.
At first, we learned how to fly and formed UAV combat units.
The deployments have diversified since then.
These successes are fuelling hopes that Ukraine is becoming a global powerhouse for UAVs.
We can become the leading country in the world for supplying drones to other nations, Ostash says.
Our engineers who are currently developing all the technologies here could become the most sought-after specialists worldwide.
With armed conflict raging on, their focus remains on the fight.
But theyre already eyeing work beyond the confines of conflict.
A dual-use sector
Drones are typically dual-use, meaning they can serve both military and civil purposes.
For example, our UAV Sirko can be used for the agriculture sector or for rescue operations.
The emerging tech has similar potential.
Autonomous targeting can strike tanks or spray crops, while AI-controlled drone swarms can fight soldiers or fight fires.
The adaptations go both ways.
Take the first-person view drones (FPVs) that transmit video feed to goggles worn by remote operators.
The devices are typically modified quadcopters used for racing and photography.
Just a few hundred dollars can buy one off-the-shelf.
Add an RPG warhead and the toy becomes a bomber.
There is no need to use expensive and high-tech UAVs as kamikaze, Lokotkov says.
Lauded for their low costs and high accuracy, FPVs have become ubiquitous on battlefields.
To meet the demand, the Ukraine has rapidly expanded domestic production.
A Ukrainian drone operator toldBusiness Insiderthat the Kremlins jammers can increasingly interrupt signals between pilot and drone.
Upgrades will therefore soon need to take their places.
That will be a loss to some drone startups, but an opportunity for others.
As crude FPVs lose potency, calls grow for advanced systems designed by the likes of Buntar Aerospace.
Money talks
Buntar is building a reconnaissance UAV that can fly 80km away from the operation station.
Built to withstand jamming, the vehicle uses a multi-rotary system to take off.
It then switches to an aircraft flight mode, which reduces the risk of operator mistakes.
The approach has caught the attention of investors.
Buntar recently raised $1mn in the companys first seed round, from investors who wish to remain anonymous.
Privatefundinglike this, however, remains rare for Ukrainian drone startups.
Before Ivan Kaunov launched Buntar last year, he already had a successful startup career.
Kaunovs work at Finmap led him toSigma Software Labs, a Ukrainian startup hub and investor.
Like Kaunov, the Sigma team has taken a growing interest in defence tech.
Its not only about weapons… One barrier is the slower investment cycles, often lasting up to 10 years.
Another is a sense of unease about supporting military applications.
With big VC firms reluctant to splash their cash, governments must fill the funding gap.
In 2023, the Ukraine Defense Minister allocated about 20 billion Ukrainian hryvnia (476mn) to purchase drones.
Deputy Prime Minister Mykhailo Fedorov said 58 Ukrainian drone makers received state contracts last year.
Allies have provided another crucial source of funds.
They could also dramatically enlarge the market for the countrys UAV startups.
Lokotkov fromSkyassist urges them to embrace the mutual benefits.
Our experience in using military UAVs during this war will help NATO very much, he says.
For now, those military applications provide the clearest route to market.
But a world beyond the war offers new commercial opportunities.
Ostash already has grand plans for the emerging dual-use sector.
Its time to start building drone development factories, he says.
And not just for military purposes.
Story byThomas Macaulay
Thomas is the managing editor of TNW.
He leads our coverage of European tech and oversees our talented team of writers.
Away from work, he e(show all)Thomas is the managing editor of TNW.
He leads our coverage of European tech and oversees our talented team of writers.
Away from work, he enjoys playing chess (badly) and the guitar (even worse).
