Hear the Startup Voice! Support Ukrainian startups!

To promptly respond to the new challenges faced by the Ukrainian startup ecosystem under martial law, the Ukrainian Startup Fund conducted an online ecosystem survey.

Around 150 founders of Ukrainian startups took part in it.

Respondents answered questions on the possibility to continue their startup activity and essentials: the need for relocation, the work of the team, funding and investment needs, further plans for project development, etc.

The results allow us to analyze the current state of the Ukrainian startup ecosystem. In particular: by the location of the startup teams: 71% remained in Ukraine, 28% partly abroad, and only 1% left the country altogether.

It is important to note that many startup teams have joined the Ukrainian Armed Forces, Territorial Defense or IT army, helping financially or the media, volunteering… Everyone understands that in wartime realities, everyone’s contribution is valuable. Some startups make all their services free of charge for users, while others actively create new platforms, marketplaces, or other digital projects, uniting those who are ready to help and those who need it. And there are many such examples!

“All forces are directed to any possible help from our startup. The IT part has gone to the cyber forces. Graphic designers are creating free mockups for billboards and animations for bloggers who support our army. Marketers are spinning ads to combat Russian propaganda, C-Level is raising funds and buying body armor and helmets,” says the AdMarket startup team.

The survey showed that now, in this time of war, it does not matter in which field a startup operates – everyone is trying to bring victory closer by any means possible. It is impossible not to note the patriotic spirit of Ukrainian startups, which cannot stand aside when there is a war in their home country.

At the same time, domestic startups are trying to adapt to the new working conditions during martial law and are making great efforts to keep the business running and keep it running.

24.3% of the startups interviewed are still working, 46.7% are partly working (mostly remotely), 28% do not work at all, and 1% have changed their field of activity.

The ability to continue as a startup varies: 38.5% of respondents have savings for a maximum of 1 month, 37.2% for 1-3 months, 16.7% for 3-6 months, and 7.6% for six months or more.

In general, if we talk about the future development of startups, the survey results show that 41.1% of startups currently do not have any savings or financial resources to develop their startup.

The vast majority of the startups surveyed (99% of respondents) indicated that they need financial support.

At the same time, 85% of respondents understand and have a vision of what to do next. They continue to make plans to develop their projects for the future.

37.4% of startups require project relocation and a team on a temporary or permanent basis.

Among the immediate challenges startups name: retention of the team and its safety, reformation of the business model, microloans, finding foreign investment, fundraising, etc.

“The Ukrainian startup ecosystem can serve as an example to the world. Despite difficult conditions, the startup industry is struggling to stay on track. But talents need to be helped. Their knowledge and competencies are the startups’ main resources. Amid the war, Ukrainian startups not only stand side by side with the defenders of our country and do their best on information and IT fronts, but they also try to keep their projects viable, keep working, and move forward. You should not think that the startup ecosystem in Ukraine is paralyzed. It is quite the opposite. More than 70% of the startups remain in Ukraine. They are as motivated as possible to continue to develop their projects. Now they desperately need support and investments. So, we urge international partners to support Ukrainian startups and, therefore, our country’s economy. The economic front in this war is as important as the military one. Thus, we must join our efforts to continue the development of Ukraine’s innovative potential,” said Pavlo Kartashov, Director of the Ukrainian Startup Fund.