6 reasons to invest in startups from Ukraine

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For more than For three months Ukraine was engulfed in flames of war with Russia. From an investor’s point of view, this may seem like a wake-up call, but things are not so black and white in the country’s technology sector.

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Tech companies with Ukrainian roots and main markets in the US and Europe continue to operate smoothly after making sure their teams and data are completely safe abroad or in the west of Ukraine. In addition, foreign embassies are returning to Kyiv, indicating that the Ukrainian capital may soon become safe enough for companies to reopen offices.

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IT companies have demonstrated their resilience and ability to deliver results even in the toughest environments. This is one of the many reasons why Ukraine is a successful hub for future unicorns.

Let’s look at six reasons to invest in tech startups from Ukraine.

They have proven their ability to withstand the crisis

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The Ukrainian IT sector has demonstrated unprecedented resilience, flexibility and ability to withstand any conditions during these months of war. With contingency plans prepared in advance, many tech companies quickly relocated their teams to safety in the early days of the war, or even before hostilities broke out.

Currently, many companies have distributed their teams between offices in the west of Ukraine and abroad to ensure smooth operation. They minimized risk while maintaining discipline and access to a talent pool.

Most Ukrainian tech startups are still recruiting

According to the survey DOW. This suggests that Ukrainian IT companies have reliable airbags.

More importantly, they continue to hire talent to both support their business and help the economy. The IT sector is third largest attractor foreign exchange into the country’s economy, making this sector vital to economic stability.

Since the development of the IT sector is an integral part of maintaining the country’s GDP, the government fully supports it. For example, during the war, safe areas in western Ukraine turned into new hubs for IT companies.

Ukraine has a huge personnel reserve

Ukraine is one of the most popular IT development centers. This is where EPAM, Luxoft, and other outsourcing giants have gathered significant numbers of software engineers, business analysts, and other technical professionals.

The number of IT professionals has also grown steadily over the past 10 years. For example, in the first half of 2021, 50 largest Ukrainian IT companies increased their numbers 10,000 specialists. It is also home to leading technology startups in their respective sectors – Jiji, Taimi, Reface, MacPaw and Headway, to name but a few.

Startups are an integral part of creating a new layer of technology firms in Ukraine

Ukrainians want to return home, and some have already done so. Of the nearly 7 million Ukrainians who have crossed the border since the start of the war, 2 million returned, and many more are on the way back. These people show that they are ready to work hard to restore the country.

Another thing to consider is that the world is supporting Ukraine economically, providing the necessary resource base for economic recovery. Add to this the desire of Ukrainians to do everything possible to live better in their country, and you have very promising prospects for post-war development.

Today’s startups will form the basis for a new layer of technology companies that will add significant value to the Ukrainian economy.

Ukraine is cost-effective for construction technology companies

Ukraine is one of the best countries for doing technology business due to the economical tax regime for IT companies and the cost of livingaccording to research Do business.

The country also has a strong educational infrastructure for the study of technology, mathematics, finance and economics. And due to the increased demand for IT specialists, many large companies open their own educational centers and organize internships. These trends are only gaining momentum.

The whole world supports Ukraine

Ukraine has long been an outsider in Europe and has not had access to the capital it needs to catch up with its more advanced neighbors. As a result, many technology companies grew rapidly without external capital.

This helped the founders become disciplined when distributing funds or scaling operations to their clients in other countries. The combination of such discipline and export-oriented product development is a surefire blend for sustainable growth. It also offers good opportunities that can be accelerated with investments.

At the same time, Ukraine’s international partners are providing the necessary resources to restore the country’s economy, so companies will have even more potential for global growth. EU stands in full solidarity with Ukraine not only by providing their people with humanitarian, political and financial support, but also by creating a Trust Fund for Solidarity with Ukraine to rebuild Ukraine after the war.

The current influx of international investment, a favorable tax regime and a strong talent base, combined with the desire of the Ukrainian people to return home, make Ukrainian companies attractive investment targets.

Credit: techcrunch.com /

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