TLDR:
Capital continues to flow to Ukrainian-staffed startups, with most founders being expats. Ukrainian founders tend to headquarter their ventures outside the country, even though their employees are mostly based in Ukraine. The tech industry in Ukraine remains strong, with many workers staying put despite the war.
Key Points:
- Ukrainian founders of venture-backed startups tend to headquarter outside the country
- Tech work in Ukraine hasn’t contracted sharply since the war began, with the industry generating $6.7 billion in revenue last year
As a data company, tracking investment in Ukrainian startups has been challenging due to the diaspora of founders and skilled tech workers. Many Ukrainian startups target global markets but choose to headquarter abroad, often in major tech hubs like New York, London, or San Francisco. The digital diaspora of Ukrainian founders has grown larger and more connected since the war in Russia began.
Despite the war, the tech industry in Ukraine remains strong, generating over $6.7 billion in revenue last year. Although millions of Ukrainians have left the country, many tech workers have stayed behind, including those at startups like Vidby and 3DLook. Working conditions have normalized to some extent, with critical infrastructure functioning without disruption.
High-profile Ukrainian-founded companies like Grammarly and GitLab continue to have a strong presence in Ukraine, supporting the country’s defense effort. Funding still flows to startups with Ukrainian founders and mostly Ukraine-based staff, with companies like NewHomesMate and Comptera securing significant seed funding rounds.
Overall, Ukraine’s most fundable founders are based abroad, making it challenging to track funding to Ukraine-connected private companies accurately. However, startup backers still see potential in the talented and globally dispersed Ukrainian startup networks, indicating a positive outlook for the country’s tech industry.
