The Russian Invasion Provides A Glimpse Into Ukraine’s Formerly Robust Startup Market

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As startup CEOs and founders took to Twitter to denounce the invasion and try to coordinate evacuations for their employees, the global venture market is learning more about the Ukrainian ecosystem.

... [+]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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Russia-Ukraine war: Arizona ammo company to send 1 million rounds of ammo to UkraineAn ammunition company in Scottsdale, Arizona, has pledged to send one million bullets to the Ukraine Armed Forces as Russian President Vladimir Putin continues his deadly invasion into Ukraine. If you want peace, your top priority is the safety of your land and your family. It is foolish to put your family at risk for your neighbors. RUS and UKR the war are just theirs. 🕊 Don't give a reason to attack your land. Don't know why Russia is complaining about inbound weapons to Ukraine. Russia has been doing it for 9 days now. Love it, wish I could be a personal escort and stay and help the Ukraine
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