... [+]Russia’s invasion of Ukraine has thrust Ukraine’s president Volodymyr Zelensky into the global spotlight as he gives speeches and updates on the current situation. But just a few weeks earlier, he could be found delivering a very different kind message. “We want to transform Ukraine into a country of startups,” Zelensky said at the February 8 Kyiv-based Diia summit, meant to highlight the country’s technological advancement.
Prior to the last two weeks, the Ukrainian startup ecosystem was well on its way to fulfilling that vision. Investors say that the market had grown exponentially over the past few years and Ukraine’s prowess in computer science and tech have made it a hotbed for startup activity — especially in sectors including deep tech and artificial intelligence. The government has also become involved.
According to Deloitte, more than $1.68 billion was invested into startups in the country during the first 11 months of 2021, its most recent data. “That is a huge amount of money for a market that is still relatively unknown to some extent,” Andrew Wrobel, the founder of Emerging Europe, a platform that helps promote local startup ecosystems, says. U.S.-based PitchBook recorded only $9.
Part of the disconnect is that many Ukrainian-founded companies incorporate in a country that is part of the European Union, such as Estonia or the U.K., so that they can avoid legal and tax burdens in Ukraine. This makes it less clear which companies are founded and built there.
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