Ukrainian startups were the least of the nation’s worries as it faced an invasion by Russian forces a year ago. It was believed then that Kyiv, the capitol of Ukraine, would fall within four days. Yet, a year after the February 24, 2022, invasion, and the city still stands strong, and Ukrainian startups, against very long odds, are thriving.
This is a testament to Ukraine’s grit, determination and spirit — qualities that have been visible within the country’s startup scene for decades. Despite lacking access to the same resources and funding as US-based entrepreneurs, Ukrainian minds have created some of the most impactful solutions of recent times: Gitlab and Grammarly to name two.
The invasion has posed many challenges — loss, displacement and uncertainty — but as Ukrainian tech watched its home crumble, its focus wasn’t on what it had lost, but how it could best prepare to rebuild.
Raising capital during conflict
Despite almost all reporting negative impacts, just 12% of Ukrainian startups ceased operations as a result of the war, according to a survey by the Polish-Ukrainian Startup Bridge.
In fact, Ukraine’s IT sector grew by 13% in 2022, as its resolve attracted investment from around the world. From Amazon Web Services’ $100,000 grants for Ukrainian companies and Google’s $5m fund for newly-launched Ukrainian startups, to the US government and European Union’s incubation programs, many businesses have been able to grow despite Russia’s best efforts to cripple the Ukrainian economy.
Preply closed a $50m Series C last year after tripling its B2B sales, while Unstoppable Domains and AirSlate raised $65m and $51.5m respectively to become Ukraine’s latest tech unicorns. But success hasn’t just been enjoyed by established startups. Cannabis loyalty and distribution platform WEEDAR started 2022 with the mass-relocation of its workforce. A year on, the company has raised $1.5 million, achieved 30% month-over-month growth, and continues to attract many of the biggest names in cannabis.
Thriving during tough times
It isn’t just the financial security of Ukraine’s tech startups that have been put at risk, but also the lives of those who maintain them.
An estimated 18.6 million people were forced to flee Ukraine, leaving behind homes, possessions and often loved ones to make treacherous journeys to safety. That was the case for 70 Ukrainian employees of a fashion tech startup 3DLOOK. Yet, despite facing hardship, the team was unwilling to let the invasion put its mission on hold. Within a month, they had relocated to Poland and a number of other EU countries and were preparing to launch the award-winning virtual fitting room solution, YourFit, in March 2022.
The same resolve has been shown by online learning leader Laba Group — a holding company behind leading online learning platforms such as Laba, ELVTR, Skvot and robot-dreams — which had more than 350 employees located within Ukraine. Creating opportunity from adversity, the company has set up new offices in Czechia, Poland and Romania, and is using its now globally dispersed workforce to enter new markets and grow its profile on the international stage. Even in the face of war, the group has established leadership positions in Europe and expanded to the UK. At the same time, the group’s US-based online learning company ELVTR has conquered the US with 35% quarterly growth.
From code to combat
While continuing to serve customers, develop innovations and expand their global reach, Ukraine’s tech community has also played its part in sustainability the fight on the frontline.
The CEOs of startups such as Finmap and Iriscan have taken their leadership skills to the battlefield, for instance — and they’re not alone. According to a recent IT Ukraine Association report, 70% of surveyed companies have team members actively fighting against the invasion.
Others have been supporting efforts from afar. With cyberattacks against Ukraine having tripled, global cybersecurity firm UnderDefense from Lviv has taken the lead on protecting the country’s online infrastructure and businesses, for example. And where direct assistance cannot be provided, startups have been using their platforms to raise awareness and funds, with 95% of IT companies having donated to support those fighting against and affected by the invasion.
Ukraine will emerge stronger
Startups are chaotic and challenging at the best of times, but few have faced the hardship that Ukraine’s innovators have in the past 12 months. Despite everything, 56% remain optimistic about their company’s prospects in 2023. It’s this unwavering determination — shared by the whole nation — that will see Ukraine survive, its cities rebuilt, and its startups thrive.
