Ukrainian startup M-FLY has secured $1.3 million in funding from angel investors and four venture funds, according to AIN.UA.

Funding details

• The investment round included backing from Resist.ua, MITS Capital, and Freedom Fund. Additionally, Borys Shestopalov and private investors from Ukraine, Denmark, Grenada, the United States, and an Estonian miltech company participated.
• The newly raised funds will be used to finalize the development of a laser designator and semi-active guidance seekers. The startup aims to fully release the technology by the end of Q2 2025.
• M-FLY also plans to launch a new funding round, targeting between $3 million and $5 million.
• Earlier, in 2024, M-FLY received two grants from Brave1: $25,000 and $50,000. Prior to that, the founders raised $40,000 from family and friends and another $5,000 in third-party investments.
• M-FLY’s primary customers are UAV manufacturers, and the company is currently in the process of integrating its technology with several of them.

About M-FLY

• M-FLY was founded by volunteers Yaroslav and Vlad at the onset of Russia’s full-scale invasion of Ukraine. In September 2023, they opened their first office in Kyiv and began assembling a core team.
• The startup’s main product is a laser targeting system consisting of two key components. The first is a high-precision laser platform, known as a laser designator, which illuminates targets with a laser beam. The second is a seeker module that detects the laser spot and guides the munition toward it.
• The laser designator is later integrated into ISR platforms, including reconnaissance aircraft, strike drones, ground robotic systems, and surface drones. Meanwhile, the seeker module can be installed on FPV drones, kamikaze aircraft, and free-fall bombs. In the future, M-FLY aims to adapt its technology for short-range missiles to develop air defense systems.
• By improving targeting accuracy and reducing vulnerability to electronic warfare (EW), M-FLY’s system addresses a critical issue: according to the developers, over a million of the 1.2 million drones deployed in combat fail to hit their intended targets.
• M-FLY operates as both a Ukrainian and Estonian company. The Estonian entity facilitates investment, while the Ukrainian branch focuses on R&D and operations.