The Startup Ecosystem of Ukraine

As Ukraine stoically faces ongoing war, it is difficult to say what the after effects on the startup scene will be and how fast Ukraine will rebuild its physical and economic infrastructure. The country had been going through economic difficulties for several years before the war, but still managed to create an outstanding startup ecosystem that is both scalable and global. This attests to their talented and resilient workforce.
Some examples of impressive startups originating in Ukraine are People.ai, Grammarly, Gitlab, and Ahrefs, all with massive global member bases. A main reason for Ukraine’s success is the talent of their developers, who are sought after by many foreign companies, either remotely or in local development centers.
One major challenge that the Ukrainian startup ecosystem will be facing is, ironically, unprecedented support from other European nations that allows Ukranians to live and work in their countries for extended periods.This assistance is much needed in a time of war, but we can only hope that Ukranian tech and IT talent will come back home once the war is over, and forego relocating to their new host countries, so that we see Ukrainian ecosystems regain their previous strength. Ukrainian startups showed resilience and the vast majority are continuing their operations in the country. The war also impacted the growth of security-related industries, and the Ukraine Startup Fund supports projects that could be used during the war and for post-war modernization. The international business community is also coming together to show support for Ukrainian startups: Google launched the Ukraine Support Fund, the EU included for the first time ever targeted support for Ukraine in its Research & Innovation programme Horizon Europe, and Network VC (USA) established both a Special Venture Fund and a Support Ukrainian Startups program.
Prior to the war, the government and international organizations took notice of the Ukrainian startup economy potential, and although resources were scarce, some initiatives were taken to support growth. In 2019, Ukraine’s Startup Fund was established and a Strategic Vision for 2025 was developed. The strategy focused on supporting early-stage startups through funding and promoting access to support services, as well as to solidify globally-competitive incubation and acceleration programs. More than 200 startups were beneficiaries of this fund.
Ukraine has a difficult road ahead, but we hope to see the country’s startup ecosystems rise stronger. Innovation can come from necessity, and Ukraine will have to capitalize on all its assets to make sure the country and its economy are rebuilt.