• Bavovna became one of the first portfolio companies of the recently launched Prest Tech Horizons fund
• The startup develops AI-powered navigation systems for unmanned vehicles, offering resilient, GPS-independent solutions for accurate positioning and operation in environments impacted by electronic warfare or GNSS disruption
• The new investment will allow Bavovna to scale its production globally, refine the existing offering, and accelerate R&D effort to explore new frontiers of its technology

In June, the renowned Czech VC firm Presto Ventures launched Presto Tech Horizons, its new EUR 150M fund, in partnership with the industrial and tech giant Czechoslovak Group (CSG). This initiative represents a bold move to empower dual-use tech startups poised to drive innovation and security both regionally and globally.

After reviewing over 1,200 startups, the fund shortlisted 25 standout opportunities for in-depth analysis. By October, Presto Tech Horizons made its first investments, adding three promising companies to its portfolio. One of them, Bavovna, has developed a cutting-edge hybrid AI system for autonomous drone navigation.

A Diverse Team of Experts Pivoting to Defense Tech

The Bavovna team comes from a diverse and robust background in AI, MLOps, and sensor fusion, with experience developing advanced health tech solutions. Specifically, the team worked on medical devices that utilized sensor fusion for groundbreaking applications, such as wristbands designed to analyze hydrodynamics in blood vessels and monitor heart rate variability (HRV).

With the onset of the Russian full-scale invasion of Ukraine, the team pivoted to address the pressing challenges posed by the unprecedented concentration of electronic warfare (EW) and the rapid proliferation of drones. The war in Ukraine indeed became the turning point as EW now blankets the entire 1,000+ km front line, making GNSS navigation systems virtually unusable for most Class II Unmanned Vehicles (UVs).

The team recognized an urgent need for an alternative navigation system capable of operating in GNSS-denied environments. Their prior work in sensor fusion, combined with their firsthand experience as Ukrainian engineers in a live conflict zone, gave them the technical expertise and the contextual understanding to build a solution. This made the Bavovna team uniquely fit for the task as they understood the technical challenges and the operational realities, including the necessity for cost-efficient, reliable solutions deployable at scale.

PhD-Level Experts Leverage Operational Knowledge of AI and Drone Navigation

‘Several factors delayed the emergence of a solution like Bavovna’s. First, GNSS navigation systems were widely considered reliable and universally accessible, with little urgency for alternatives. The rapid escalation of EW in modern warfare changed this assumption. Second, developing robust, cost-effective alternatives to GNSS that can operate in contested environments requires deep expertise in sensor fusion, machine learning, and inertial navigation – skills that are rare and difficult to consolidate in one team,’ Bavovna’s co-founder and chief growth officer Maksym Prasolov tells ITKeyMedia.

Additionally, the data and operational knowledge needed to build such systems have become readily available. Bavovna’s access to over 100,000 hours of drone flight data and experience operating in one of the most EW-intensive conflict zones globally provided an unprecedented opportunity to design, test, and refine their solution in real-world scenarios. Without these such circumstances, an innovation like this would have been difficult to achieve.

The startup put together a team of PhD-level scientists, AI/ML and aerospace engineers from Ukraine with hands-on experience in the war theater, including the primary architect of the Tomahawk and Fire Scout inertial navigation systems. Leveraging this expertise, Bavovna designed and built electronic warfare-resilient navigation systems tailored for Unmanned Vehicles (UVs). Operating as a US-based company with a joint American and Ukrainian team, Bavovna actively addresses commercial and defense needs in the US, EMEA, and Ukraine.

‘In both military and commercial sectors, the importance of affordable and easily deployable solutions that allow Unmanned Aerial Vehicles, such as drones, to operate in GPS-denied and EW-threatened environments is growing. Bavovna’s timing couldn’t be more perfect. Their unique signal intelligence capabilities and seamless computational methods make them highly competitive in both defense and commercial applications,’ Presto Ventures partner Vojta Roček comments.

Fully In-House AI in Detail

Bavovna’s proprietary AI is at the core of the startup’s Hybrid Inertial Navigation System (INS), which delivers precise navigation capabilities in GNSS-denied and Electronic Warfare (EW) environments. According to Bavovna, the AI models compensate for drift in inertial navigation by analyzing and integrating data from multiple sensors, including accelerometers, gyroscopes, and magnetometers, ensuring GPS-level accuracy with an endpoint positioning error of less than 1%.

A key advantage of this system is that it doesn’t rely on computer vision for navigation, which allows our Hybrid INS to operate effectively in environments where landmarks are unavailable, such as the maritime domain. This makes it particularly suitable for UVs operating over open water or other featureless terrains.

‘The AI continuously learns from thousands of hours of flight data derived from operational scenarios in Ukraine and other regions. By comparing INS outputs to ground-truth GPS results, the AI refines its algorithms to minimize drift and enhance reliability, even in extreme conditions,’ Mr Prasolov explains.

All AI development has been conducted in-house by Bavovna’s PhD-level scientists, machine learning experts, and embedded systems engineers, ensuring full control over the technology. This enables Bavovna to optimize it for specific applications and adapt it to unique operational requirements. In-house development also ensures the highest security standards, which are critical for both commercial and defense applications.

Field-Tested Dual-Use Efficiency

‘Our AI-driven navigation solution is not just innovative, it is battle-tested, having already been successfully deployed in active conflict zones and evaluated by key defense stakeholders, such as the US Army. This makes Bavovna’s AI one of the most advanced and reliable systems for UV navigation in contested environments,’ Mr Prasolov assures.

‘Bavovna’s hybrid navigation system has a potential to significantly strengthen the security and reliability of UAVs both for civilian and military purposes. It enables drones to operate even in conditions of electronic warfare – and it is important to remember that electronic attack on a UAV can take place also in civil operations. This project is an ideal candidate for an investment by Presto Tech Horizons,’ Czechoslovak Group’s spokesman Andrej Čírtek states.

‘It is dual use, it enhances capabilities of existing technology and it brings not only value for investors of Presto Tech Horizons, but can also be applied in CSG products. For example, sooner or later most land systems we develop and manufacture, be it self-propelled howitzer or infantry fighting vehicle, will be equipped with its organic UAVs,’ he adds.

The New Investment and the Doors It Opens

For Bavovna, the partnership with Presto Tech Horizons is a strategic move that goes beyond investment. The fund’s capital, experience, and network capabilities are perfectly poised to accelerate the startup’s growth toward a leadership position in autonomous systems.

‘The new investment, led by Presto Tech Horizons, marks a pivotal moment in Bavovna’s growth. This partnership is more than just financial, it combines Presto’s deep-tech expertise, extensive network in commercial and defense sectors, and experience in scaling dual-use technologies with Bavovna’s proven capabilities in autonomous systems and UV innovation,’ Mr Prasolov shares.

With the Late-Seed investment of USD 1.4M at hand, Bavovna plans to:

1. Expand production in North America and the EMEA regions, ensuring compliance with NDAA requirements and meeting the growing demand for our GPS-independent navigation systems.
2. Refine and enhance current offerings, ensuring they continue to set the standard for reliability and performance in GNSS-denied environments.
3. Accelerate R&D efforts to push the boundaries of autonomy, targeting new applications in both defense and commercial sectors. These include first responders, homeland security, and other industries where navigation solutions must function without failure.
4. Leverage strategic networks as Presto Tech Horizons’ network of clients and partners opens doors to a plethora of new collaborations and opportunities. This aligns with our mission to bring the speed of frontline innovation to dual-use applications worldwide.

‘We are honored to share our experience to support other dual-use startups as they navigate the defense landscape,’ Mr Prasolov adds. ‘Bavovna is committed to sharing our expertise to support other startups within Presto’s portfolio, fostering a collaborative ecosystem of deep-tech innovation.’