In the midst of rising geopolitical tensions and a rapidly evolving technological landscape, the defense sector is experiencing a profound transformation. Traditional military behemoths—think battleships and fighter jets—are giving way to a new breed of agile, cost-effective, and highly autonomous systems. At the heart of this seismic shift is Ondas Capital, a newly launched business unit of Ondas Holdings, which recently announced a $150 million investment initiative aimed squarely at accelerating the global deployment of unmanned systems for Allied defense markets. This bold move is not happening in a vacuum; it’s part of a broader trend as governments and investors alike scramble to adapt to the realities of modern conflict, where artificial intelligence (AI) and electronic warfare (EW) are rewriting the rules of engagement.
Ondas Capital’s focus on Eastern Europe—particularly Ukraine—reflects a clear-eyed assessment of where demand for advanced defense solutions is surging most. By establishing European headquarters in Estonia, Ukraine, and the UK, the firm is not only positioning itself in strategic markets, but also leveraging these countries’ growing partnerships with NATO and the EU to scale its impact, according to a press release from Ondas Holdings. The war in Ukraine has made it painfully clear: unmanned systems aren’t just the future of warfare—they are the present. Drones, robotics, and AI-powered simulation tools are proving critical for reconnaissance, logistics, and even targeted strikes, dramatically reducing human exposure while boosting operational precision.
James Acuna, a former CIA field operations veteran and the leader of Ondas Capital’s initiative, brings decades of experience in international security and drone technology. His background isn’t just theoretical; he’s founded a drone training facility in Estonia, underlining the firm’s commitment to practical, combat-tested solutions. "We’re not just investing in ideas—we’re investing in technologies that have already proven themselves on the battlefield," Acuna reportedly stated, as noted by StockTitan.
The timing couldn’t be more opportune. The U.S. Department of Defense is allocating over $10 billion annually to AI and autonomous systems, a figure that aligns perfectly with Ondas Capital’s focus on AI-driven robotics and simulation tools. According to Ondas Holdings, the $150 million will be deployed over the next two years, with initial investments expected to begin in the fourth quarter of 2025. The firm’s dual approach—combining advisory services with direct investment—allows it to both scale existing technologies and incubate promising new ones. Its recent acquisition of S.P.O. Smart Precision Optics, a provider of advanced electro-optics, is a case in point, highlighting its strategy to vertically integrate sensor technology, a critical component for autonomous systems.
Of course, Ondas Capital isn’t alone in this race. The defense technology sector is projected to grow at a 12% compound annual growth rate (CAGR) from 2025 to 2030, a testament to the explosive demand for next-generation solutions. Venture-backed companies like Anduril are also poised to benefit from the ongoing shift toward smaller, more agile military assets. As GlobalData reports, this trend supports innovation in defense technology, emphasizing agility and cost-effectiveness over traditional large military hardware. The result? Companies like Anduril are winning more government and commercial contracts, drawing increased capital from investors eager to ride the wave of defense-tech innovation.
But the story doesn’t end with unmanned systems. The electronic warfare (EW) market is experiencing a renaissance of its own, driven by renewed great-power competition and the specter of high-intensity conflicts. Since 2017, major players—including China, Russia, and the US—have ramped up investments in EW, leading to what some analysts describe as a technological arms race. The Russian invasion of Ukraine, in particular, has underscored EW’s relevance on the modern battlefield, spurring a flurry of innovation and procurement.
One of the most disruptive developments has been the proliferation of Russian fibreoptic first-person view (FPV) drones in 2024 and 2025. Unlike their wireless counterparts, these drones are connected to operators by a fibre optic cable, making them immune to electronic jamming—a game-changer that forced Ukrainian withdrawal during Russia’s counterattack in the Kursk region in 2025, according to the Atlantic Council. NATO, quick to respond, launched its 16th Innovation Challenge in April 2025, seeking new ways to counter such battlefield technologies. US-based KMB Telematics won the challenge with a proposal that uses commercial off-the-shelf parts to detect and track low-signature threats—solutions described by NATO as cost-effective, scalable, and swiftly integrable with alliance platforms. Sentradel, another US company, took second place with an AI and sensor fusion-based autonomous turret, while Ukrainian startup DONS came third with a stabilised Remote Weapon Station combining ballistic calculation, AI detection, and thermal tracking.
China, meanwhile, is not sitting idle. The launch of its Fujian aircraft carrier in 2022, featuring electromagnetic launch capabilities, and the development of new EW variants of the J-15 fighter, signal the country’s commitment to EW innovation. In 2024, China reorganized its Strategic Support Force into the Aerospace Force, Cyberspace Force, and Information Support divisions to enhance military versatility. Perhaps most intriguing, however, are reports from July 2025 of a revolutionary EW system known as ‘Storm Eye’. As detailed in the Chinese peer-reviewed journal Acta Electronica Sinica, Storm Eye employs two drones with variable but corresponding jamming and counter-signalling frequencies to create a zone free from electronic disruption. Unlike traditional jamming systems, which risk interfering with friendly assets, Storm Eye’s zonal protection eliminates this collateral risk—potentially giving China a specific EW advantage over its US rival.
The United States, for its part, continues to lead in EW spending but faces mounting pressure to keep pace with technological advances abroad. In 2024, the US Marine Corps upgraded its MQ-9 Reaper drone with the RDESS/SOAR electronic warfare pod, a system that can "mimic" and return incoming signals, enabling the drone to "disappear off enemy radar," according to General Eric M Smith and reporting from The War Zone. While the USMC has stationed these upgraded MQ-9s in Hawaii to monitor China in the Indo-Pacific, the details of the RDESS/SOAR pod remain closely guarded. Nonetheless, the implementation of such novel technology is seen as critical for maintaining tactical competitiveness.
All of this points to a broader industry imperative: proposals must now offer the highest level of disruptive and novel innovation at breakneck speed to deliver battlefield advantages. The increasingly complex and rapidly evolving nature of modern warfare means that diversification within EW portfolios is likely to accelerate in the coming years. Companies—and nations—cannot afford to rest on their laurels.
Ondas Holdings’ recent public offering, which raised $150 million through the sale of 46.16 million shares at $3.25 each (closing on August 14, 2025), provides the liquidity needed to fund these ambitious initiatives. The capital will support not only strategic acquisitions and joint ventures but also the firm’s ongoing push to scale technologies that have already proven their mettle in real-world conflict zones.
While regulatory hurdles and fierce competition from established players like Palantir and Anduril loom large, Ondas Capital’s emphasis on “combat-proven” solutions and its strategic presence in Eastern Europe offer a distinct edge. In a sector poised for exponential growth, the company’s calculated bet on AI-driven unmanned systems and innovative EW technologies is both a response to immediate defense needs and a vision for the future of warfare—one where speed, agility, and autonomy are paramount.
As the defense technology sector races toward a new era, the winners will be those who can marry cutting-edge innovation with real-world effectiveness. Ondas Capital, with its deep bench of expertise and robust financial backing, looks determined to be among them.
