Archangel has led the pre-seed round in Offset Labs, the first defence and national security AI lab built by a team split between London and Kyiv. Amadeus Capital Partners and Seven Capital participated in the round.
Offset Labs was founded by engineers Denys Budnyk, Borys Nadykto, and Andrii Yakovyna. The group has already designed and deployed AI models for signal and voice processing in operational environments, a track record that puts them in rare position among Europe’s defence-tech startups.
“We are delighted to lead Offset Labs’ round. They represent the best of European defence innovation: tenacious, mission-driven founders, solving very real critical needs, with technology that can provide military superiority. We are proud to back the team, their vision, and provide hands-on support to their growth at a critical time for defence technology,” said Nicholas Nelson, General Partner at Archangel.
The investment is meant to push forward their aim of building what they call a “decisive AI advantage” for NATO allies, grounding that ambition in practical systems rather than hype. Nelson said the firm’s backing reflects its strategy of supporting defence-first founders with a mission and a willingness to take on hard problems.
Offset Labs frames its work around the idea of an “offset”—a strategic leap forward that secures an advantage in the balance of power. They argue that artificial intelligence is the next domain where such a leap can be made, but only if Western firms integrate data, research, and talent at scale. The London-Kyiv structure, rooted in experience of both NATO and frontline war, is meant to bring that vision to life.
“AI represents the next opportunity for a qualitative offset in defence, offering the free world a chance to solidify its technological advantage,” said Offset Labs CEO, Nadykto. “The challenge is that AI’s nature demands unified scaling across data, talent and infrastructure. That’s why Offset Labs exists – to bring everything from data curation to research under one roof and unlock deep AI innovation for defence customers, ensuring Western leadership in this critical domain.”
For Archangel, the deal underscores a wider bet that Europe’s security depends on home-grown firms capable of competing with American and Chinese players in AI. For Offset Labs, it is a chance to prove that small, focused teams can build systems that matter in the field.
Nicholas Nelson will be speaking at Resilience Conference in London in September, and Borys Nadykto will also present Offset Labs during the conference.
Editor’s note: This piece has been updated to include the participation of additional investors.
