Valeriy Borovyk and his Project First Contact

🇬🇧 “First Contact” Investigation — Full Set of Facts

This material draws on investors’ internal documents, court registers, open YouControl data, dozens of video interviews and public statements by Valerii Borovyk.

1️⃣ Key Points at a Glance

• $425 000 in investments raised in autumn 2023 to launch production of drone motors and propellers.

• 0 % readiness: not a single serial part shown in 20 months.

• BMW X6 2024 and a new flat ⇒ major personal spending by the founder.

• €23 600 + court fees — ruling of the Chernihiv court on 11 Nov 2024 in favour of one investor.

• The SBU denied that “Osa” drones took part in the high-profile “Pavuty­na” operation.

2️⃣ Extended Timeline

🗓 September–October 2023

• At pitch events Borovyk shows “prototypes” of motors and propellers, insisting that “everything is ready, only machines are missing.”

• Target set at $500 000; $425 000 closed in six weeks.

🗓 December 2023

• Contracts signed to “buy 0.75 % of share capital” in an LLC with a charter fund of ₴3 000.

• Key clause: all risks fall on the investor, and reporting is “on request, if it does not harm military secrecy.”

🗓 January–April 2024

• Instead of equipment, investors get “pre-orders” and excuses about Chinese New Year.

• The engineering team is officially “disbanded”, yet money remains under the founder’s control.

🗓 31 May 2024

• Property register records a BMW X6 2024 — dealer price ≈ €100 600.

🗓 13–27 August 2024

• The announced “business trip” abroad is in fact a holiday in Portugal.

🗓 September 2024

• The founder cedes part of Kyiv real estate to his ex-wife and buys her a new flat (≈ ₴6.8 million).

🗓 11 November 2024

• Chernihiv court orders €23 600 to be recovered for an investor, citing non-performance and lack of reports.

🗓 2025

• Despite lawsuits, a new fundraising round opens for the underwater drone VAL-1 (company valuation again $3 million).

• Media repeat claims that “Osa” drones joined “Pavuty­na”; the SBU clarifies its own in-house designs were used.

3️⃣ Where Did the Money Go? 💸

🔑 $107 000 — personal mortgage payoff by the founder (court file, April 2024).

🏢 53 m² flat — registered to the family in September 2024.

⚙️ Machines: photo audit shows six Chinese units worth ≈ $80 000 (instead of $400 000 in the budget).

4️⃣ Main Fraud Patterns and Tactics 🚩

• Financial fairy-tale — payback “in 4 months”, average profitability “45 %”.

• Rubber contracts — the start-up’s only solid duty is to re-register a minimal LLC share.

• Untraceable transfers — cash with a receipt, cryptocurrency, funds via third-party sole traders.

• “Empty” legal entities — ₴3 000 charter capital, no financial reports for eight years.

• Personal shopping — cars, real estate, loan closures.

• Zero reporting — any request dismissed as “classified”.

• Team rotations — engineers and accountants replaced under the banner of “security”.

• Interview world tour — 60 + public appearances where the founder poses as cosmonaut, producer, Elon Musk’s adviser, and “the first to show FPV to Zaluzhnyi”.

5️⃣ Market Impact and Outlook 🔮

• Finances under a microscope: investors now demand escrow, payment tracking and monthly P&L reports.

• NSSMC template contract: a standard with clear KPIs and penalties for non-performance is being drafted.

• Capital pivot: money flows into the Brave1 cluster, which has already issued 470 grants worth ≈ $35 million.

• Corporate ventures: large defence groups create CVC funds to acquire start-ups with real R&D.

• Reputation filter: private mil-tech projects without an audit are doomed — market trust is near zero.