On the morning of February 24, 2022, people across Ukraine became aware of a new reality: the country and most of its cities were under intensive military rule. attacks from neighboring Russia. For most, there is confusion as to what is happening and why Russian President Vladimir Putin order such a military offensive against the country.
However, for Ukrainian startups and businesses, now is the time to act, as most must consider their options as the conflict threatens to endanger and disrupt various industries in the country.
The IT industry is one of them, as Ukraine has a young and vibrant tech ecosystem with many startups and companies in verticals such as medtech, AI, fintech and much more.
This country of 44 million people also has a large IT talent pool, as many global companies either have a presence in the country themselves or outsource and work with skilled professionals from the region.
For Kiev-based ecosystem creator Galyna Paliychuk, while it is certainly difficult to predict what will happen next to Ukrainian startups and businesses, in the long term the tech ecosystem should be good.
“Since most startups are globally oriented, I don’t think they will be negatively affected by the war. They might be based in Ukraine, or the founders might move elsewhere, but in general this type of business will be good,” Paliychuk told The Recursive.
Additionally, evolving conflict could also provide additional opportunities for startups, she says.
“It’s likely that other countries with startup visa programs could open their doors widely to them, it might be possible. In addition, global support for Ukrainians in general can be a good opportunity. I tend to be more positive in life, seeing problems as opportunities. Paliychuk added.
Difficult and unpredictable situation for most businesses
Some Ukrainian startups have also decided to stay in the country. One of them is Redo, an AI startup that has worked on various ML projects. End of 2020, Reface managed to raise $5.5 million in a funding round to develop its face-swapping video app.
In a tense political context, Reface decided to stay in Ukraine and continue to develop its activities.
“Our co-founders and our team decided to stay here in kyiv, because we believe in our product, we have ambitious plans, and now it is important to focus on our goals, continue to develop our business together and use common sense,” Reface said. Public relations manager Daria Kravets told The Recursive on Tuesday, just days before Russian attacks on the country began.
Reface has also taken steps to raise awareness among its users about what is currently happening in Ukraine.
“We launched a massive information campaign, showing evidence of Russian attacks in our cities and asking people to stand with Ukraine. We sent push notifications to all Russian users showing the real situation in Ukraine, we added in-app messages to users around the world to support our country, and now every video made with our app has a watermark. with #standwithukraine and the Ukrainian flag. We are risking everything, we have already received many 1 star reviews, but it is such a small price to pay compared to our lives and our freedom,» Kravets narrates The Recursive.
However, there is also visible unease with what is currently happening in the country. Creative States is one of the most popular coworking spaces in the country, with offices in Kyiv and smaller cities like Dnipro, and where many young startups begin their entrepreneurial journey.
Although the coworking space has kept its kyiv offices open, they have warned people not to come and stay safe.
“We’re open so people can pick up their stuff, but we’re asking them not to come,” Creative States’ Mark Dolinsky told The Recursive, adding that many people are fleeing kyiv as we speak.
Many Ukrainians to start up the founders also expressed their opinions on social networks, exhorting their compatriots not to give up, while advising international companies to continue working with Ukraine.
“In recent times, our IT sector and other sectors are suffering from a lack of foreign partnerships. We have all the resources we need to progress and prosper. So don’t be afraid to work with Ukraine. This may be new to the world, but we have been living like this since 2014. We have learned to manage our businesses even in such conditions. And some Ukrainian startups have even become unicorns and leading companies over the past 8 years. This war did not stop us then, and it will not stop us now,” wrote Ukrainian entrepreneur Dario Fedko in a LinkedIn post that went viral.
For others, like the UK-based Ukrainian entrepreneur and CEO of VR platform Musemio, it’s a situation no one could have prepared for.
“My team is based in three major cities, kyiv, Dnipro and Kharkiv, 40 km from the border with Russia. No one taught me what a CEO should do when war breaks out. This is not the lesson I always wanted or was ready to learn. I messaged my team this morning and asked them to let me know if there was anything I could do to help. However, unfortunately there’s really nothing I can do. I can only be there for them and their families and be ready to provide emotional support if they ask for it,” Kravchenko wrote in a LinkedIn post.
Kravchenko also sent a message to companies that have hired Ukrainian nationals, asking them to be there for them during these difficult times.
“Those currently living in Ukraine are living the worst nightmare and are afraid for their lives and their future. It would help if you were willing to accept that these people are now in survival mode and are being ordered to shelters. They could lose all connection with the outside world. They may choose to stay offline as much as possible to avoid information distress. They need to know they have your support,” she said. underlines in posting on social networks.
