This weekend marks precisely two years since Russia’s unlawful, unprovoked and brutal invasion of Ukraine. Regardless of overwhelming odds and continued hiccups within the provides of Western support to battle off Russia’s onslaught, the nation and its tech startup ecosystem has actually soldiered on, changing into a case-study in resilience.
As an example, of the 511 tech corporations primarily based in Kharkiv earlier than February 2022 — today a metropolis higher recognized for coming underneath common Russian bombardment — 500 are nonetheless working, in keeping with Kharkiv’s tech “cluster” organisation.
And tech corporations within the West have rallied across the sector, more and more working with Ukrainian tech companies on a variety of initiatives.
This week Google launched its second ‘Google for Startups Ukraine Help Fund’ with a finances of $10M to help Ukrainian startups throughout 2024 and 2025. Chosen Ukrainian startups will obtain as much as $200,000 in equity-free funding, in addition to Google mentorship, product help, and $300,000 in Google Cloud credit. For the reason that battle began, Google claims to have allotted greater than $45 million in direct support and $7M to help humanitarian efforts.
For the reason that battle broke out, the scheme has to date supplied 58 startups with $5 million in non-equity grants and $15.8 million in follow-on funding. Tech corporations supported on this manner have included Skyworker.ai, Mindly and Zeely. Zeely raised a $1M seed spherical final 12 months.
In the meantime, Estonian accelerator Startup Clever Guys launched Progress Ukraine, a programme for startups in Ukraine.
And the EU-funded challenge ‘Seeds of Bravery’ programme has 5 programmes to help Ukrainian tech startups with grants starting from €10,000 to €50,000.
Final week the non-profit startup help programme UK-Ukraine TechExchange launched, specialising in defencetech and agritech.
The non-public pro-bono program primarily works with startups creating drones, UAVs, sound-based missile detection, counter-drone know-how and drones for agricultural functions.
Ukraine’s tech sector is astoundingly resilient, and even rising.
A current survey from the Lviv IT Cluster (“Adaptability and Resilience Amidst Conflict”) which consulted over 7,000 tech specialists and greater than 400 corporations.
Ukraine’s tech sector has helped maintain its financial system afloat amid the battle.
The tech trade contributed 4.9% (or $7.1 billion) to Ukraine’s GDP final 12 months. In Rising Europe’s IT Competitiveness Index, revealed in April final 12 months, Ukraine took twelfth place, rising from 14th in 2022.
The variety of Ukrainians working within the tech sector has elevated by over 7% (whilst the broader financial system shrunk by nearly a 3rd), reaching a complete of 307,600 individuals, with 242,000 residing and dealing in Ukraine, regardless of the ravages of the battle.
Understandably, the variety of Ukrainians working in tech overseas has grown by 20%, with the present determine standing at 65,000 in comparison with 55-57,000 final 12 months.
Poland’s tech financial system is changing into “Ukrainians overseas”.
Some 36% of Ukrainian CEOs plan to open new places of work, 28% of them overseas, and the bulk are selecting Poland as their second base of operation.
Ukraine can also be exporting the know-how behind its quickly creating digital authorities. mRiik, Estonia’s newest digital device, has been primarily based on Ukraine’s Minister of Digital Transformation Diia app, which securely shops ID playing cards, passports and driving licenses digitally, in addition to permits entry to some public companies.
The identical Ministry of Digital Transformation additionally runs the Ukrainian Startup Fund, which has turn into the nation’s largest angel investor, backing over 350 startups. Many of those have clearly pivoted in the direction of protection and dual-use functions.
Launched in Spring 2023, the nation’s protection tech initiative is known as BRAVE1. This fast-tracks innovation within the protection and safety sectors. It has funded over 400 tasks, with nearly 200 having additionally undergone dwell army testing.
Under, we current a number of the most recent information from Ukrainian-origin startups and tech corporations.
• Preply raised an additional $70 million in funding final 12 months — a mix of debt and fairness — to increase its Collection C to $120 million. It now has 650 workers and 40,000 language tutors. It claims to have elevated income by 10-fold since 2021, and not too long ago arrange a brand new workplace in New York Metropolis. It’s offering free group language classes to displaced Ukrainians, and expenses no fee charges to any tutors primarily based in Ukraine and extra.
• Ukrainian software program firm MacPaw is within the last levels of creating a beta model of an app retailer for iOS apps, aimed toward EU-based iPhone customers.
• On the finish of 2023 Firefly Aerospace closed one other tranche of financing, valuing the corporate at $1.5 billion pre-money, it claims. It says it’s raised $300 million in funding since February 2023.
• Carmoola, a British fintech for automotive financing co-founded by Ukrainians Roman Sumnikov and Ihor Hordiychuk, secured $125 million in funding in February 2023, adopted by an extra $16 million in January 2024. It’s backed by VCs together with VentureFriends, InMotion Ventures and u.ventures.
• Fintech Farm, a digital banking resolution pioneer based by Ukrainians, raised $22 million to enterprise into rising markets.
• DressX, a digital vogue retailer initiated by Ukrainians Darya Shapovalova and Natalia Modenova, secured $15 million to develop its AR and digital clothes choices.
• Vidby, which has AI-based voice translation options, with an R&D heart in Ukraine (and a Ukrainian CEO and co-founder).
• NewHomesMate, a market of latest building properties within the US, has raised $5.5 million in funding.
• ELVTR, an schooling startup with Ukrainian founders and group, retains 45% of its workers in Ukraine.
• Geek VC is a $23-million VC fund which invests in Ukrainian immigrant founders. The fund was created by Ukrainian Vadim Rogovskiy in partnership with Ihar Mahaniok months earlier than the battle started. 25% of their portfolio corporations are run by Ukrainian founders.
• Hypra Fund launched shortly after the invasion of Ukraine. The fund has allotted almost $20 million in the direction of corporations with Ukrainian heritage, together with a $10 million in Trinetix.
• Spend With Ukraine, is a non-profit that curates an internet platform with greater than 240 Ukrainian-rooted manufacturers. By selecting to #spendwithUkraine, shoppers worldwide can stand in solidarity with the individuals of Ukraine.
• Respeecher is an AI device for voice replication know-how that works with Hollywood film studios. As a result of the Crimean Tatar language is deemed critically endangered by UNESCO, Respeecher’s group gathers the voices of Crimean Tatar audio system to safeguard a language threatened throughout Russia’s occupation.
• Petcube, an organization that develops interactive pet cameras, launched Cam 360 and a GPS Tracker for pets.
• Everyrun is a Ukrainian-British social working platform providing options for marathon organisers, charities, and firms aiming to host working occasions. Within the final 12 months it launched its product, the corporate has fashioned partnerships with marathon organisers in Lithuania and Italy, and attracted runners from 32 nations.
