Tencore Secures Precedent-Setting USD 3.74M Seed Investment from MITS Capital

• Tencore raises USD 3.74M from MITS Capital via Diia City, attracting US capital in Ukrainian defense tech
• TerMIT, its flagship UGV, is a modular, battlefield-tested robot for logistics, evacuation, and combat support
• The investment deal sets precedent for foreign funding through Diia City, using convertible loan agreements
• With the new funding, Tencore aims to scale production, expand team, and develop dual-use postwar robotics technology

This July, the Ukrainian developer and manufacturer of unmanned ground vehicles (UGVs) Tencore announced closing its Seed round of investment. The USD 3.74M funding comes from the American-Ukrainian investment firm MITS Capital, and the deal is realized through the Diia City platform.

Signaling a New Era in Ukrainian Robotics

Founded in 2024, Tencore is a Ukrainian robotics company specializing in ground robots designed for defense and security applications. Their systems focus on enhancing battlefield efficiency, safety, and automation by performing tasks such as logistics support, reconnaissance, and explosive ordnance disposal.

‘Tencore creates complex robotics designed specifically for the combat missions of the Armed Forces of Ukraine and tested in real-life frontline conditions. We combine modular architecture, a fast modernization cycle and full integration with existing military systems. Our approach can be summarized as ‘from the battlefield to production’ and it allows us to implement changes in weeks, not years, which is critical in the present-day warfare conditions,’ Tencore’s CEO Maksym Vasylchenko notes.

Importantly, Tencore’s entire production cycle – from machining and assembly to testing – is carried out in Ukraine. As for the software, it is Tencore’s own development, but Mr Vasylchenko tells ITKeyMedia that today the Ukrainian governmental institutions have developed proprietary software that’s compatible with the company’s devices. Curiously, the CEO also notes that the implementation of AI on the battlefield is not a priority as of now, even though the team doesn’t exclude AI-related opportunities.

Swiss Army Knife on Tracks

Tencore’s flagship product is called TerMIT. It is a modular, rugged tracked UGV built for versatility in combat and support roles, capable of independent handling of such tasks as logistics, evacuation, mine clearance, and fire support across challenging terrains thanks to its low silhouette, low center of gravity, and all-terrain mobility.

TerMIT supports a substantial 300 kg payload capacity, lasts for up to 12 hours of operational endurance, develops a top speed of about 10 km/h, and can be controlled from a range of up to 20 km. The price of one unit is estimated at USD 12K depending on configuration.

Its true strength lies in its modular design: the platform can quickly be outfitted with combat modules, such as e.g. Browning machine guns or grenade launchers, satellite communication gear like Starlink Mini, electronic warfare systems, mine-laying tools, or extra armor—making it a highly adaptable ‘Swiss Army Knife on tracks’ for the frontline.

Rapid Growth and Engineering Culture to Save Lives

Reportedly, in roughly 18 months of its modest history, Tencore expanded its team to 215 members and manufactured 800 robots. Its partners span key Ukrainian defense supporters, including Come Back Alive, the Serhiy Prytula Foundation, and active front-line brigades, underscoring the company’s rapid growth and vital role in national security.

‘We work by the principle of short iterations: we receive feedback from the front – make changes – test – send the updated version to the army unit. Every engineer is welcome to propose a solution, regardless of their position. In addition, we hold internal R&D days where the team tests experimental ideas,’ Mr Vasylchenko shares.

According to MITS Capital’s CEO Perry Boyle, his firm backed Tencore because its battlefield technology saves Ukrainian lives as Tencore’s TerMIT is an exemplary frontline-proven, cost-effective UGV capable of extracting wounded soldiers without risking additional lives, among other tasks.

‘The founders’ expertise in scaling factories accelerated TerMIT’s path from prototype to NATO-standard-certified, frontline-ready product with rapid mass production. This investment also creates a legal and financial precedent—the first U.S. defense tech investment via Ukraine’s Diia.City regime. It paves a transparent, EU-comparable legal way for future capital deployment,’ Mr Boyle states.

A Precedent-Setting Deal Through Diia City

Diia City is Ukraine’s special legal and tax framework designed to support IT companies, tech startups, and tech investors. It offers favorable conditions such as reduced taxes, flexible employment models, and stronger intellectual property protections. Launched by the Ukrainian government, it represents the nation’s decisive step toward accelerating the growth of its digital economy.

‘This agreement creates a clear legal path for international investors to deploy capital directly into Ukrainian entities without workarounds. Diia City makes investing in Ukrainian legal entities as secure as investing in a Delaware C-Corp or an Estonian e-Residency company,’ MITS Capital’s founding partner and CIO Denys Gurak comments.

While Diia City has been in place since 2022, MITS Capital’s investment in Tencore through this framework sets a precedent because this is the first Diia City-powered venture capital deal of such scale. The precedent comes from Diia City’s use of internationally familiar legal tools, such as English-law style convertible notes and option agreements, which reduce friction for foreign investors. It also provides clear tax rules and protections for intellectual property, giving investors greater confidence.

The investment was structured under Article 29 of Law of Ukraine ‘About Stimulation of Development of Digital Economy of Ukraine’ (dubbed the ‘Diia City law’), which specifically provides a legal basis for convertible loan agreements. This makes it the first disclosed case where a US investor has used a convertible loan mechanism to invest directly in a Ukrainian DefenseTech company under the Diia.City framework. By structuring MITS Capital’s deal this way, Tencore demonstrated how Ukrainian startups can attract global venture funding under this framework.

Expanding and Diversifying

As for Tencore, it is known to have already broken even. According to Mr Vasylchenko, profitability allows the company to maintain its work in a stable manner, but investments are needed for scaling – increasing production output, opening new production lines, developing next-generation robots, and entering international markets.

Specifically, the fresh investment will allow Tencore to manufacture 2,000 robots this year, expand its team by 20 engineers, and move into the dual-use technology market. Its 2025 strategy highlights developing remotely operated excavators and tractors for demining—equipment with significant postwar importance for Ukraine. By diversifying beyond defense, the company positions itself to address urgent reconstruction needs while strengthening its innovation pipeline.

‘In Ukraine, we are forming a new industry – unmanned ground systems, which are already changing the tactics of war. We see ourselves as a global leader in creating combat and specialized UGVs capable of operating in extreme conditions, from military operations to rescue missions and protection of critical infrastructure,’ Mr Vasylchenko concludes.

UGVs like Tencore’s TerMIT are reshaping the Ukrainian battlefield by enhancing efficiency, reducing risks to soldiers, and introducing new tactical possibilities. At the same time, the precedent-setting MITS Capital deal through Diia City demonstrates that Ukraine is fully capable to offer a transparent, globally trusted framework for defense tech investment. Together, these developments signal not only a military advantage today but also a foundation for Ukraine’s long-term leadership in robotics innovation worldwide.