The "military tech" (MilitaryTech) sector is actively developing in Russia. Investment funds are investing in startups that are developing communications for reliable communication, AI technologies and cybersecurity tools, and UAVs.
The NTI stated that there is demand for unmanned technologies, in particular, the development and production of drones. Venture funds are also ready to finance projects in the field of AI and software for UAVs. The NTI estimates the growth of military tech startups in 2024-2025 to be up to 30%.
What funding can startups receive?
In addition to the development of drones, popular areas include:
- robotics
- 3D modeling
- biomedicine
At an early stage of development, promising startups can receive up to 15 million rubles. These funds are provided for the creation of an MVP (minimum viable product) to demonstrate its functionality. The next stage of attracting capital is 500 million for scaling the product.
What the experts say
Ruslan Sarkisov, Managing Partner of the Voskhod Fund, stated that the geopolitical situation influences investors' decisions. Given that the Russian budget for 2024 includes over 10 trillion rubles for national defense and security, the priority of the public sector is obvious, he emphasized.
Another expert added that MilitaryTech is actively developing in Russia and the USA. In 2023, the volume of venture investments in military tech worldwide reached $34.3 billion.
Alexey Simakov, a representative of the Loktar group of developers of communication and UAV detection systems, noted that the Russian market lacks systemic venture investments. State funds are looking at companies that already have stable revenue. However, most successful developments appear in spite of the current funding system, he concluded.
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