State of the Ukrainian Startup Scene 

by Olha Povaliaieva
Tuesday, February 1, 2022
State of the Ukrainian Startup Scene 

The Ukrainian nature of startups is just beginning to develop dynamically but already gives high indices

75% of startup projects have been on the market for no more than 3 years in the country. However, 12% of companies entered the market 3-5 years ago.

Many projects are in the capital of Ukraine. More than half of the start-up projects (53.2%) are currently based in Kyiv. Thus, the capital becomes the optimal place and center of industry, culture, and science and a place for the development of the startup ecosystem.

60% of Ukrainian startups work on the B2B model. They actively create products and offer services to other firms. Both domestic enterprises and foreign customers may be involved. Start-ups are most often provided by economic agents, ranging from micro-enterprises to large corporations. 29% of existing companies in Ukraine provide their services in B2C.

A special fund exists to support young initiatives in the country. The Ukrainian Startup Fund provides advisory and financing services. In 2021, 31% of new organizations applied for assistance.

New products feed the Ukrainian startup ecosystem, competitions, and festivals on the market. It is worth mentioning that there are more and more of them each year. Ukrainians can receive grants to develop their business and participate in international competitions and exhibitions.

"The Ukrainian startup scene is relatively young and very dynamically developing. This confirms, in particular, the initiation in 2019 of the Ukrainian Startup Fund, the development of business incubators in large IT companies, the positive annual growth of the number of startups in the market," expressed his opinion Lukash Vavak, one of the founders of new companies in the country.

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