BUSINESS MODEL

Objectives

1. Context

The defense sector in Europe is experiencing a significant surge, with increased budgets reflecting a renewed commitment to bolstering national defense capabilities.

Ukraine, as the world’s most advanced laboratory for drone technology, offers unparalleled combat-tested expertise, yet European companies hesitate to invest due to perceived risks.

2. Solution

At CASTRUM, we capitalize on this opportunity by acquiring drone companies and supporting their goals of scaling production and advancing R&D.

By establishing a Danish company, CASTRUM secures intellectual property rights and absorbs Ukrainian knowledge to enhance drone development, strengthening the Danish defense industry.

3. Return on Investment

Our cost-effective production in Ukraine, paired with an R&D hub in Denmark, optimizes resource allocation and maximizes profitability.

This strategic approach ensures a strong return on investment, driven by immediate demand from the Ukrainian military and long-term opportunities in the EU/NATO markets.

4. Full or partial exit opportunities

As CASTRUM-supported companies scale and integrate into international markets, we anticipate high value exit scenarios that can yield significant capital gains for our investors.

Setup

In order to achieve the mentioned goals, the first step is to establish a company in Denmark having the same name as the Ukrainian company. The Danish and the Ukranian companies will pursue a shareholder swap. 51% of the Danish shares must remain in Denmark, it is a requirement from the FMI. Additionally, a numbers of shares will be swapped with the Ukrainian company.

Example of the ecosystem

Process

Once the Danish entity is established, the process will be tailored to the Ukrainian company’s needs. The first priority is to raise funds. Then, the collaboration will allow the Ukrainian entity to focus on development and production, while offloading administrative tasks to the Danish entity, which will handle them. In addition to supporting both short- and long-term objectives, the Danish entity also handles a range of support functions on behalf of the Ukrainian entity.

Funding

Strategic business advisory

Supply chain support

R&D and production support

Proof of Concept

Learn more about this process with our proof of concept

FUNDS