Unmanned Defence Systems funding news – Lithuanian-based Unmanned Defense Systems Secures €3.2Million in Funding

Additionally, UDS has created its own fleet of unmanned aerial vehicles (UAVs), which includes FPV, loitering munition, and Partisan reconnaissance drones.

The company sells its solutions to the armed forces of Lithuania and Ukraine, as well as other EU countries and NATO allies, and has previously won many defence procurement competitions.

Vytenis Buzas, the space mission leader and one of the architects of the first Lithuanian satellite, "Lituanica SAT-1," and Ernestas Kalabuckas, the recipient of the title "Lithuanian CTO of the Year 2022," who is personally donating €1.1 million to the company, are joining the leadership.

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The squad consists of PhD holders in physics, electronics, and aerodynamics who are also world champion radio-controlled plane and sports gliders in their spare time.

Vytenis Buzas, nominated Executive Chairman of the Board, says: “We have the ambition to prove to the world that Lithuania is as great in developing high-tech military UAVs, as we are in aerospace or lasers. Moreover, the team is united by a burning inner drive to help Ukrainians win this brutal war.”

Even if they aren't presently operating in swarms, UAVs have the potential to be revolutionary, as the battle in Ukraine has shown. They are essential to the collection of intelligence, surveillance, and targeted attacks.

Ernestas Kalabuckas, incoming CTO, shared: “We are grateful to our military partners in Ukraine for running frequent tests together in the actual warzone, enabling agile and swift technology upgrades in response to the constantly changing conditions on the battlefield.”

Coinvest Capital is co-investing €1.6 million with a fund share of €0.9 million, along with a group of business angels and one angel syndicate of 41 private investors.

Members of the Lithuanian Business Angel Network, such as Vladas Lašas, Rita Sakus, Martynas Kandzeras, and Gytenis Galkis, as well as Giedrimas Jeglinskas, Šarūnas Račkauskas, Paulius Vilemas, and Linas Sargautis, are among the business angels who co-invested with the Fund.

It will close in a few months and an additional €0.5 million is set aside for foreign investors with experience in the dual-use industry.

According to Laurynas Kasčiūnas, Minister of Defence, "Lithuania can have its own success story." With the current rapid and dynamic pace of technological advancement, we no longer have the luxury of standing still. We have to be up to date with emerging military developments and know how to incorporate them into our defence strategy.

Viktorija Trimbel, Managing Director at Coinvest Capital, who has led transaction negotiations, emphasises: “Being a sovereign VC fund, the first and the largest in the Baltics, fully authorised to invest in defence, we have patient capital and a mission that perfectly aligns with the specifics of defence and dual-use innovation needs and decision-making cycles.”

Former NATO Assistant General Secretary and Republic of Lithuania Vice-Minister of Defence Giedrimas Jeglinskas is co-investing his own money and has been appointed to represent investors on the company's board of directors. He believes that the answers provided by UDS drones match the realities of the modern military shifts:

The investments will go towards advancing the development of proprietary swarm technologies, encouraging the development of drone autonomy and inter-drone coordination, fortifying NATO's military capability, and bringing it into line with the requirements of conflict in the twenty-first century.

About Unmanned Defence Systems

Unmanned Defence Systems conducts research, develops, designs, and produces military UAS systems that are tactical in nature. UDS drones, with their innovative modular complex foundation, offer modern conflict management the practicality and affordability needed to secure superiority and increased battlefield safety.