Ukraine’s Tech Startups Thrive Despite Russian Invasion

This weekend marks the two-year anniversary of Russia’s invasion of Ukraine, an event that has had a profound impact on the country. Despite the challenges posed by the ongoing conflict, Ukraine’s tech startup ecosystem has demonstrated remarkable resilience and growth.

Support from Global Tech Companies

• Google launches ‘Google for Startups Ukraine Support Fund’ with a $10 million budget to support Ukrainian startups.
• Estonian accelerator Startup Wise Guys launched Growth Ukraine, a program for startups in Ukraine.
• The EU-funded project ‘Seeds of Bravery’ has launched five programs to support Ukrainian tech startups with grants ranging from €10,000 to €50,000.

Resilience and Growth of Ukraine’s Tech Sector

A recent survey from the Lviv IT Cluster found that the total number of tech specialists in Ukraine has increased by over 7%, with the tech industry contributing 4.9% to Ukraine’s GDP last year. Despite the conflict, Ukraine has risen to 12th place in Emerging Europe’s IT Competitiveness Index.

International Expansion and Innovation

• Ukrainian CEOs plan to open new offices, with Poland being a top choice for expansion.
• Ukraine’s rapidly developing digital government technology is being exported, with Estonia’s latest digital tool, mRiik, based on Ukraine’s Minister of Digital Transformation Diia app.
• The Ukrainian Startup Fund has become the country’s largest angel investor, backing over 350 startups, many of which have pivoted towards defense and dual-use applications.

Success Stories

• Preply raised $70 million in funding, expanded its operations, and provided free language lessons to displaced Ukrainians.
• MacPaw is developing an app store for iOS apps aimed at EU-based iPhone users.
• Firefly Aerospace raised $300 million in funding since February 2023.
• Several other Ukrainian-founded startups secured significant funding for expansion and innovation.