Ukrainian-Estonian Drone AI Startup BaBayte OÜ Secures U.S. Investment

Ukrainian-Estonian startup BaBayte OÜ has raised investment from U.S.-based fund Green Flag Ventures to advance its AI-powered drone defense technology. The startup previously gained investor attention at the IT Arena 2025 Startup Competition, where it took second place in the defense category. Representatives from Green Flag Ventures were on the jury and later initiated due diligence, which led to the investment.

BaBayte is developing an onboard artificial intelligence module that enables drones to detect threats and autonomously perform evasive maneuvers in real time. The system analyzes interception trajectories and reacts without operator input, addressing a growing vulnerability in modern unmanned systems.

“Every drone in worlds’ arsenals faces the same problem: the moment it launches, it’s a target. Interceptor drones, FPVs, kinetic C-UAS. The threat environment is evolving faster than the platforms themselves. And right now, most drones have zero ability to defend themselves. Babayte is changing that,” said Justin Zeefe, founding partner of Green Flag Ventures.

Founded in 2024 by Roman Karpenko, BaBayte focuses on counter-UAV technologies. Its flagship product, BabAI, combines electro-optical and infrared sensors to detect threats such as interceptor drones and FPV systems, enabling fully autonomous responses at the edge, without cloud dependency.

Green Flag Ventures backs early-stage startups in cybersecurity, dual-use technologies, AI/ML, and fintech. BaBayte plans to use the new funding to further develop its existing areas and scale its AI-driven drone protection systems.