Survey: 78% of local startups are ready to find solutions for rebuilding Ukraine

A study on the role of Ukrainian startups and institutions (organizations) in the recovery and transformation of Ukraine was conducted by the Polish-Ukrainian Startup Bridge (PUSB) team and the Ukrainian Startup Fund (USF).

The results were presented on November 8 at the Media Center Ukraine (Ukrinform).

What is the problem?

Previous reports by the Polish-Ukrainian Startup Bridge (PUSB) and the Ukrainian Startup Fund showed that the outbreak of a full-scale war has significantly slowed down the development of the startup market. As of the end of last year, most startup CEOs assessed their current situation as poor. 12% of surveyed companies ceased operations after the Russian invasion.

What is the solution?

The Polish-Ukrainian Startup Bridge (PUSB) team and its partners have now conducted the third analysis of the Ukrainian startup ecosystem. It allowed us to find out how Ukrainian startups are feeling now and how they can contribute to Ukraine's reconstruction and transformation in various areas.

How does it work?

53% of optimists

The survey involved 107 startups interested in rebuilding Ukraine. 85% of them are currently in Ukraine, with more than half of them operating in Kyiv.

Of the remaining 15% of those who have relocated, 56% have moved to Poland, followed by the US with 17.6%.

Almost a third, namely 31% of respondents, attracted investment in their developments, which was a great success during the war, emphasized Lukasz Wawak, head of the Polish-Ukrainian Startup Bridge.

Roman Nikitov, Co-Head of ICU Ventures, Karina Kudryavtseva, Head of USF Ecosystem, Kateryna Grechko, Executive Director of Techosystem, and Lukasz Wawak, Head of Polish-Ukrainian Startup Bridge / Rubryka

53% of the surveyed startups are optimistic about their future in the context of Ukraine's reconstruction. 46% do not plan to move their business abroad after the war ends.

49% of startup representatives said that they have plans and strategies that will help them take an active part in the process of rebuilding the country. In another 15% of responses, entrepreneurs expressed caution, noting that many unknowns could affect their efforts, the study says.

81% of the startups answered in the affirmative when asked whether their solution could help rebuild Ukraine.

When asked about the fields in which startups can contribute to the recovery, 44% of respondents pointed to the service field, where they offer innovative solutions for consumers and businesses. 28% of startups are focused on education, and 23% on providing innovative medical solutions. 26% of respondents named the infrastructure, and 26% are focused on the IT industry, including the creation of software, applications, or security systems.

When asked whether they would consider creating a new (different) project to rebuild Ukraine in the future, as many as 78% said yes, and 22% responded no.

These responses indicate that startups are ready for long-term participation in the process of reconstruction and development of innovative solutions, the study says.

The researchers also managed to identify the "secrets" of Ukrainian startups' success.

• Ukrainian startups, unlike Polish ones, are immediately focused on the global rather than the domestic market;
• Due to the loss of their comfort and security zone, Ukrainians are forced to work in conditions of uncertainty, and they have already adapted to this. They do not expect a stable life. Therefore, most of them experiment and change quickly and easily;
• Many Ukrainian startups have already, partly forcedly, learned to work in foreign markets. They have a better understanding of the multicultural business environment;
• Ukrainian startups are more persistent and dedicated because they realize that they have even more risks to invest than others. Being aware of these additional barriers, Ukrainians are putting in more effort.

At the same time, the return of startups from abroad remains a challenge. 47% of survey participants plan to return home, but 35% have not yet decided, and it is on communication with them that Ukraine should now focus on, says Lukasz Vawak.

The study says 18% of interviewees clearly stated that they do not plan to return due to better development conditions abroad, establishing a strong positioning in a new market, or unwillingness to restart business from the start in the domestic market.

Survey participants also emphasized the need to raise funds from the state and international funds. Lukasz Wawak, the head of the Polish-Ukrainian Startup Bridge, said he would advise Polish startups based on the survey results: "Do what Ukrainians do, and you will be successful."