Artem Moroz serves as Deputy Head of Partnerships and International Cooperation and leads Investor Relations at Brave1, Ukraine’s flagship defense tech platform.

Born out of the Ministry of Digital Transformation, Brave1 was created to accelerate technological innovation amid the crucible of war. With backing from six key government institutions—including the Ministry of Strategic Industries, the Ministry of Economy, the General Staff of the Armed Forces, and the National Security and Defense Council—Brave1 has disbursed over $30 million in R&D grants across more than 500 projects.

Brave1 is reshaping Ukraine’s military landscape by fast-tracking battlefield-ready technologies such as drones and electronic warfare systems. It nurtures startup ecosystems, streamlines NATO Stock Number approvals, and fosters a resilient domestic supply chain by connecting civilian innovators directly with military needs. This initiative has become a cornerstone of Ukraine’s defense capabilities, enabling swift deployment of critical technologies on the front lines. As Brave1 continues to advance, it is not only fueling innovation but positioning Ukraine as a pivotal force in global defense tech and strategic resilience.

This Saturday, Brave1 marks its second anniversary with the “Defense Tech Era” showcase in Kyiv—a high-profile event bringing together senior government officials, investors, and leading industry experts.

Scott Douglas Jacobsen: Thank you for agreeing to this interview.

Artem Moroz: Let me clarify a few points.

First, six key ministries and organizations were involved as founding partners at the outset. As you mentioned, the Ministry of Defense and Digital Transformation were among them. In addition, the Ministry of Strategic Industries is also a founding partner—they are responsible for scaling solutions that reach later stages of development.

The Ministry of Economy is another founding partner, as financing is crucial to the project’s success. From the military side, we have the General Staff of Ukraine, representing the armed forces. Last but not least, the National Security and Defense Council, which coordinates most defence activities in Ukraine, is also involved.

So, those are the six founding partners. Since our focus is on technology, the Ministry of Digital Transformation is our primary stakeholder. We collaborate with all six but work most closely with them.

Since the launch of the grant program, we have distributed over $30 million in grants. These funds have come entirely from the Ukrainian state budget. We recently relaunched the program for 2025 and expect to distribute a similar amount, based on strategic priorities and expert evaluations of proposed solutions.

Regarding the scope of work, we are currently collaborating with over 1,500 companies that have submitted more than 3,600 products or solutions. The scale is much larger than many realize.

Jacobsen: The nature of modern warfare is evolving at an unprecedented pace. Remote operations, drone reconnaissance, intelligence-driven systems, and satellite surveillance have become foundational. As we enter a new era of hybrid warfare, how does Brave1 distinguish itself from conventional models of defense innovation?

Moroz: That’s a great question. I would step back and start with Brave1’s mission—why we exist. For Ukraine, we are being very pragmatic. Competing with a much larger country like Russia, particularly in terms of workforce and traditional military assets—such as tanks and artillery —is tough. Therefore, we are investing in areas where we can improve: agility, innovation, and technology. That’s the Brave1 approach.

So, our only real chance of winning this war—and defending our democracy and our country—is through innovation. It is about being more effective with the resources we have. The key, the “secret sauce,” is using technology and being the first to implement those technologies.

The Russians are strong, learning quickly, improving their solutions rapidly, and learning a great deal from us. So we need to move even faster—at least twice as fast.

At Brave1, our ultimate goal is to provide advanced technologies to the Ukrainian Armed Forces and to ensure they have all the necessary tools to repel aggression. We can do this in two main ways. One way is to source those technologies within Ukraine. However, to achieve this, we first need to nurture the ecosystem.

That’s why we provide grants and help companies obtain a NATO Stock Number (NSN), a requirement for any product procured by the Ministry of Defense.

We are aligned with NATO because we have a long-standing intention to join the alliance and share the same mindset and values with NATO and the European Union—those of Western democratic principles. From a technical perspective, we want to be well-prepared and interoperable. Codifying our products according to NATO standards is crucial, not only for the current war effort but also for our future integration and cooperation.

Defence tech is an industry that can lead Ukraine’s post-war economic recovery. It has the potential to become a significant source of export revenue, allowing us to sell our solutions to allies and partners and support global defence efforts—drawing on the hard-earned lessons we’ve learned.

That’s why the NSN process is essential. Brave1 also acts as a connector, linking the frontline with the tech developers. We collect insights from the battlefield, including what products are needed, emerging trends, and real-time challenges. We feed that information back to the developers so they can create solutions tailored to actual needs.

Once a new technology is created, the next challenge is rapid deployment. We must ensure that solutions can be quickly delivered to the military, scaled effectively, and used across brigades and battalions. Change is hard—especially in the military—and introducing entirely new systems comes with a learning curve. We must minimize that curve as much as possible.

When we see a new solution successfully implemented, we strive to ensure its widespread adoption, thereby enhancing the overall efficiency of our operations.

Jacobsen: How do you evaluate and select new defence technologies or projects?

Moroz: That’s really at the core of how Brave1 operates—and the value we aim to create. Any Ukrainian company with a registered legal entity is eligible to apply to be part of Brave1 by applying through our website. It’s an open call, an open form.

We have a three-step evaluation process.

First, we conduct a standard security check. We do not allow companies with connections to Russia or questionable histories regarding legality, taxes, or ownership. Once they pass that initial check, our expert committee thoroughly evaluates them.

We have around 80 experts with scientific, technical, and military backgrounds. Each project is assigned to three experts who assess it across multiple criteria, including scalability, uniqueness, relevance to national security, frontline applicability, and several other key factors. Based on these evaluations, projects receive scores.

If a project falls into the lower 50%, it is not eligible to join the Brave1 ecosystem. However, we provide detailed feedback to the team outlining what they need to improve, and they are welcome to reapply whenever they believe their solution is more mature.

The top 50% become official participants in Brave1 and receive a status we call BRV1. We begin working closely with these projects because they demonstrate the most potential, and we must prioritize our limited resources.

The top 20–25% become eligible for grants. The grant system is relatively straightforward: the higher a project scores in the evaluation, the larger the grant it may qualify for. Our grants range from $50,000 to $200,000 per product, not per company. So, if a company is developing multiple products in different areas, it can apply for multiple grants, and we’re happy to support it across those innovations.

To give you a sense of scale, we’ve distributed around $30 million in grants, which translates to roughly 500 grants issued so far.

Jacobsen: What is your approach when engaging with startups, the military, and international partners?

Moroz: Great question. If we look at it from a stakeholder perspective, our ultimate client is the people of Ukraine. First and foremost, our mission is to protect them. But beyond that, we also aim to instill confidence in the Ukrainian people that we can survive this war, that we have a chance to win, and that we will defend our homes and future.

The military is next in the chain. Our primary goal is to increase the survivability of Ukrainian service members through technology—to reduce the human cost of war. By leveraging new technologies, we aim to move people away from direct combat zones.

That’s crucial, especially considering the stark contrast between Ukrainian and Russian tactics. Our adversary is often willing to suffer high human losses for minimal territorial gains. We do not follow that strategy and do not have the luxury of doing so.

So, we are focused on implementing unmanned aerial, ground-based, or otherwise unmanned systems that can deter attacks, stop the enemy, and protect human life. Our philosophy is clear: we should utilize technology wherever it can replace a soldier.

So that’s the clear message—the value proposition—for soldiers: use technology to avoid putting your comrades and others at risk.

When discussing startups and companies, we’re working with a broad spectrum. On one end, we support tiny, garage-type startups. On the other, we also work with scale-ups—companies already generating hundreds of millions in revenue and preparing for international expansion when the time is right.

What is important to highlight is that most of these companies were established within the past two to three years. They are growing and developing solutions incredibly fast. We can confidently say that Ukraine is leading the world in new defence technology, particularly based on what is actively used on the front line.

Ukraine currently produces about 45% of its overall defence equipment domestically. However, regarding new, innovative defense technologies—such as drones, electronic warfare, and situational awareness systems—about 95% of the equipment used by the Ukrainian Armed Forces is locally produced. This speaks volumes about the effectiveness and adaptability of our local industry.

Even when equipment is donated or purchased from allies, it often fails to perform as well as expected in actual combat conditions. The cost-to-performance ratio is frequently unfavourable. Locally produced Ukrainian solutions are more efficient, reliable, and battlefield-proven.

Our value proposition for startups is to connect them directly with the military and help them scale as quickly as possible. As a government-backed initiative, Brave1 exists to support their journey from prototyping to full deployment.

One key enabler is the NATO Stock Number (NSN). This is crucial for procurement and integration across allied defence systems. Due to bureaucratic complexity, obtaining an NSN typically takes two to three years in Western Europe or the U.S. However, we’ve reduced this timeframe to an average of just two to three months in Ukraine. In one record-setting case, it was done in just nine days.

So, it is striking to compare a typical 1,000-day timeline in Western countries to a 9-day timeline in Ukraine. This opens up enormous opportunities for speed, agility, and responsiveness in defence innovation.

As a result, we’re now seeing international companies establish a presence in Ukraine. They’re setting up local legal entities and R&D centers to exploit this fast-track environment. Being close to the front line allows them to innovate at the pace required by modern warfare—which is extremely difficult if you’re operating far from the conflict.

Armed with the credibility of real-time testing and a NATO Stock Number obtained in Ukraine, these companies are now returning to their home markets in Western Europe and approaching their Ministries of Defense with proven, deployable solutions.

Jacobsen: You mentioned the high casualty toll on the Russian side—the stark human cost of the Kremlin’s strategy. Can you walk us through the estimated daily figures? What are we seeing in terms of Russian casualties, both injuries and fatalities? And what’s the typical range—from the highest spikes to the lower end?

Moroz: That’s a better question for the journalists, as they’re officially tracking and evaluating those numbers. However, public statistics are published daily by the general staff.

On average, Russia is losing around 1,000 personnel per day—killed and wounded combined. On some of the most intense days, the figure has exceeded 2,000.

What’s most striking is that even Valerii Zaluzhnyi, the former head of the country’s military and now Ukraine’s ambassador to the UK, once believed that if a sufficiently high attrition rate could be achieved, it would force Russia to reconsider its offensive strategies. That was the prevailing thinking during the first year of the full-scale invasion.

But a year later, in another interview and broader national reflection, the consensus shifted. Unfortunately, no clear threshold—no matter how many casualties—has yet proven sufficient to halt Russia’s advance. Despite the enormous losses, they continue pushing forward.

Jacobsen: What mechanisms does Brave1 employ to support defence tech innovations? Have all 500 grants been allocated?

Moroz: Yes, roughly 500 grants have been allocated to date, funded by the state budget. However, it’s essential to clarify that these grants are specifically intended to support research and development (R&D)—not scaling.

The goal is to support technologies in the prototyping phase, ideally up to Technology Readiness Level (TRL) 7, where they’re tested on the front line and a working prototype exists. However, scaling production—such as building a factory or a mass production line—is beyond the scope of grant funding.

That’s why we work closely with investors worldwide, covering the full spectrum of investment stages—from pre-seed and seed rounds to later-stage capital. Ukraine offers a compelling case: the defence technologies we support are battle-tested in real-world conditions. They’re innovating faster than most solutions you’ll see anywhere else.

Yet, these companies remain significantly undervalued compared to their Western counterparts. Empirically, a company in Ukraine at the same technological readiness level as a U.S. company would be valued at approximately 10 times less. Compared to Western Europe, it’s around three times less.

This is partially due to perception—Ukraine is still an emerging destination in the startup space. There’s risk. We don’t yet have the brand or reputation that Silicon Valley or Berlin might enjoy.

Also, exports remain limited. Due to national policy and the ongoing war, most weapons and defence solutions produced in Ukraine are directed to the front line. According to the prevailing political consensus that all defence production should prioritize national defence, export permits are restricted.

However, we now find ourselves in a unique position. The capacity of Ukraine’s defence industry has outgrown the available state budget. There is a significant manufacturing surplus.

At some point, export restrictions will need to be relaxed. When that happens, we expect a rise in international sales, and consequently, a significant boost in company valuation. This will enable these companies to operate at scale, reach new markets, and support the defense efforts of allied nations—all while contributing to Ukraine’s economic growth.

Jacobsen: What issues are you facing with resource constraints and supply chain disruptions?

Moroz: From the beginning, supply chain constraints did appear to be a serious threat—but now, they are becoming more of an opportunity. In Europe, the U.S., and Ukraine, most components—particularly those for drones—originally came from a single major supplier: China.

However, we do not consider China an ally. At best, it’s a transactional trade partner, particularly regarding components. However, it’s not a source we can depend on in the long term or take for granted. Recognizing this, many Ukrainian companies that previously focused solely on assembling finished products—such as drones—have begun to delve deeper into the supply chain and produce the components themselves.

Just a month or two ago, we held an event celebrating the production of the first 1,000 FPV drones made entirely from Ukrainian-manufactured components. That means 100% of the parts were sourced domestically—no imports, no Chinese components. This marked a significant trend: Ukraine is building internal manufacturing capacity for critical defence technologies.

This shift also presents a strategic opportunity for Europe and the U.S. If you’re looking for components that perform well under modern battlefield conditions—at a price point comparable to China and produced at scale—Ukraine is now a compelling option. Therefore, the supply chain is becoming a strength and strategic leverage point for Ukraine’s defense industry, rather than a weakness.

Jacobsen: Russia is reportedly dedicating nearly a third of its national budget to military spending, yet much of its equipment still harks back to the Soviet era. What does this reliance on legacy systems suggest to Brave1 in terms of strategic opportunity—particularly when it comes to the relevance and impact of your R&D efforts?

Moroz: I would disagree with that interpretation. While Russia allocates a significant portion of its budget to defense and relies heavily on Soviet-era equipment, such as tanks, it also invests heavily in modern technology.

They are refurbishing and deploying old equipment at scale, but they understand that artillery and traditional hardware alone are no longer game changers. The real breakthroughs altering the course of battles are technologies like drones and electronic warfare systems. And Russia is learning this quickly.

Take the Shahed drones, for example—long-range attack unmanned aerial vehicles (UAVs). I’m from Kyiv. I’ve been here since the very first day of the full-scale invasion. In the beginning, Russia used cruise missiles to strike Kyiv and other cities. That was the primary mode of long-range attack.

But over time, we’ve seen a shift. Cruise missile attacks have become much less frequent. Instead, drone attacks—especially Shaheds—have increased dramatically. What previously took a year’s worth of drone attacks to achieve, they are now accomplishing in a matter of months or even weeks.

We are also seeing swarming tactics evolve rapidly. Drones are no longer primitive, low-tech tools. They are increasingly incorporating jet engines, extended range, and greater precision. In many ways, they are starting to resemble cruise missiles in capability, albeit at a fraction of the cost.

That is where Brave1 comes in. Our role is to ensure Ukraine keeps pace and stays ahead. Our R&D focuses on identifying and developing next-generation capabilities, enabling our forces to maintain technological superiority on the battlefield.

The cost difference between a missile and a drone is enormous. Unfortunately, I sometimes get the impression that NATO countries may be ill-informed about their level of preparedness regarding defence technologies and solutions.

There is an assumption that Western technology is inherently superior. However, when you consider how quickly our adversaries adapt and advance into this new era of defense technology, that assumption begins to look risky—perhaps even dangerous.

We’ve shifted paradigms. During the Cold War, several high-tech solutions served as deterrents against potential aggression. Today, the reality is different. You need volume. We are transitioning from a model focused on “high-tech” to “effective tech.”

That means the goal is to accomplish the mission using minimal resources. You don’t need a profoundly complex, expensive, or luxurious solution—you need something that works.

A good example is the use of fibre-optic drones. Initially, it sounded absurd—a drone connected by what is essentially a fishing line, flying 20 kilometres? No one believed it would work.

Yet it became a game changer. These drones are immune to jamming from both Ukrainian and EW Russian systems. Ukraine is deploying tens of thousands every month, and they’ve proven highly effective.

Jacobsen: Final question—how do you sustain momentum in the midst of war? Is the conflict itself the driving force, or have you developed a more structured approach to advancing innovation under pressure?

Moroz: Wartime changes everything—including your values and your way of life. Even legally, in Ukraine, we no longer have public holidays. That adds the equivalent of 10 to 12 extra working days per year. In effect, you’re operating as a 12% more productive organization—whether it’s a factory or a team.

Despite massive challenges—blackouts, missile strikes, constant uncertainty—what I admire most about Ukraine is our adaptability. For example, we developed alternative energy solutions quickly and efficiently during blackouts. Now, we’re better prepared for those situations than anyone else—and we did it in record time.

Everyone here knows exactly what we’re fighting for. We’ve seen what occupation means. It’s not just a change of flags or passports—it’s the deportation and kidnapping of children. It’s filtration camps. It’s mass executions of anyone considered a “risk” under the new regime.

This is not about politics. It’s about survival—yours and your family’s. That clarity provides people with extraordinary motivation to work harder and persevere longer.

For example, a company produces ISR (Intelligence, Surveillance, and Reconnaissance) drones. They opened a factory in a neighbouring country for safety and future international sales. I asked the founder how it was going. Surprisingly, he told me that despite the lack of energy issues or missile threats there, productivity at that foreign facility is half what it is in Ukraine.

That’s the difference wartime motivation makes. In Ukraine, people work with a sense of purpose. They know what’s at stake.

Jacobsen: Thank you very much for your time today. I appreciate it.

Moroz: Thank you, Scott. It was a pleasure.