UForce, a Ukraine-founded defense technology company with a hub in Washington, said Thursday it raised $700 million in a Series A financing round that valued the business at $6 billion.
Valor Equity Partners and the United Kingdom’s National Wealth Fund co-led the round. The U.S.-Ukraine Reconstruction Investment Fund also took part, according to the company’s announcement.
Reuters independently reported the financing terms. UForce did not disclose how much each investor committed.
The company plans to use the money to increase production and research across Ukraine and allied countries. Its products include uncrewed vessels, aircraft and ground platforms, along with software used to coordinate them.
Public funds join the round
UForce said the reconstruction fund’s investment will support jobs, research and product development in Ukraine. The fund is a joint U.S.-Ukrainian initiative that invests in Ukraine’s recovery and strategic industries.
Conor Coleman, head of investments at the U.S. International Development Finance Corporation, called it the reconstruction fund’s largest emerging-technology investment to date. His statement was included in the UForce release.
The company also said the National Wealth Fund’s investment would help expand engineering and production in Britain. The fund, which is owned by the British Treasury but operates independently, has £43.2 billion available for investments.
Menlo Ventures, Xantium and Hiro Capital joined the financing. Existing investors Shield Capital, Ballistic Ventures, Lakestar and Squadra increased their stakes, UForce said.
Production planned across allied countries
UForce is headquartered in London and has major operations in Kyiv and Washington. The company said the financing would support manufacturing across the United States, Europe, the Asia-Pacific region and the Middle East.
The expansion is intended to keep production running despite attacks in Ukraine and place factories closer to customers. UForce said it would increase production of its MAGURA vessels, NEMESIS aircraft, LIUT ground vehicles and PREDATOR counter-drone turrets.
Retired Gen. Christopher G. Cavoli, a former NATO supreme allied commander in Europe and a partner at Valor, will join the company’s board.
UForce CEO Oleg Rogynskyy told Axios that defense buyers in Europe and the United States cannot spend all the money allocated to them because suppliers lack enough capacity. He declined to say whether the financing included secondary transactions or whether the British investment carried job or manufacturing requirements.