Startup Opportunities in Ukraine After 2023

Why global investors are starting to take Ukraine’s defense-tech ecosystem seriously — and what it means for the market and the future of warfare. I had a privilege along great investors and founders to talk with the United24 Media as it dives into the forces shaping Ukraine’s rapidly scaling defense-tech industry. It’s worth founders and investors attention. Some of the insights that stood out: 📈 Investments are accelerating — not slowing down. From roughly $5M in 2023 to over $105M in 2025, Ukraine’s defense-tech startups now capture a meaningful share of early-stage capital in Europe. 🧪 Battlefield validation reduces risk. Unlike many Western startups still chasing potential, Ukrainian technologies have already proven themselves under fire. This real-world testing — with immediate feedback from soldiers — removes much of the ambiguity investors typically avoid. 🌍 Global players are now present on the ground. German, U.S., Dutch, and other foreign funds/companies are opening local offices, acquiring stakes, and partnering with Ukrainian firms — signaling not just exposure but strategic integration into the ecosystem. 🧰 Structural reforms are unlocking capital flows. New legal frameworks — like investor-friendly tools from Diia City coming into Ukrainian law — will help keep investment inside the country and support larger deals locally, rather than forcing founders to register abroad. 📍 Long-term value goes beyond wartime demand. Investors interviewed emphasize that this isn’t just wartime necessity — it’s a shift in global defense procurement where autonomous systems, drones, EW, and dual-use platforms will define future capabilities and export markets. 🔑 The key takeaway: Ukraine’s defense-tech growth is not accidental — it is market-driven, validated by combat, and increasingly tied to global demand and capital. Worth reading the full analysis — link in the comments. Daniel Kosoy Deborah Fairlamb Roman Sulzhyk Taras Semeniuk

A trend I’m seeing in Ukraine’s miltech space right now? Gentle Israelization — with a Ukrainian twist. Three years of war have given rise to a new generation of Ukrainian entrepreneurs. They came into business from very different directions, but they share a mindset forged in extreme conditions. Some went to the front and were discharged after being wounded. Some built products from scratch inside military units to solve urgent battlefield problems. Some entered the military space as civilians in 2022 and now work side by side with combat units every day. Most of them don’t see their future in miltech — they’ll go on to build civilian startups. But here’s what sets them apart from the entrepreneurs I’ve known over the last 20 years: – They move incredibly fast. Their MVP/MSP timelines are dramatically shorter than civilian founders — even though they work with hardware, not software. – They iterate without ego. Mistakes and unproven hypotheses are corrected quickly, because the cost is counted in lives — both tactical (their teammates) and strategic (every day of war = more deaths). – They build teams fast, pulling in people with the right skills at the right moment. – They don’t chase billion-dollar valuations. They know why they’re building. – No BS. They are laser-focused on real problems — not building for the sake of building. – They share everything — knowledge, tech, skills, even teammates. And the most important part? After three years, this mindset has become second nature. Most of them will leave miltech — and take this approach into the broader startup world. Many will leave Ukraine. But I believe we’ll soon see the rise of a new Ukrainian "mafia": Alongside the military, refugee, and miltech networks, a generation of veteran-founders is emerging. And they bring what so many ecosystems lack: → speed → focus → urgency → clarity of purpose There are already hundreds of these people. Even if just a few percent succeed — that’s dozens of founders who will build fast, solve real problems, and help reshape industries. If anyone is building a fund focused on veteran founders creating global products — count me in.

The Ministry of Economy of Ukraine, in collaboration with the Kyiv School of Economics and leading Ukrainian consulting firms, has prepared the Ukraine Investment Guide 2024. This guide was presented last week at the Ukraine Recovery Conference in Berlin and complements the EU-approved Ukraine Facility Plan, which provides €50 billion in financing to Ukraine until 2027, as well as the Ukraine Reform Matrix. The Kyiv School of Economics is proud to have contributed to all of these documents. The investment guide offers an overview of Ukraine's economy, key sectors, and investment opportunities as of June 2024: - Despite the challenges posed by Russia's invasion, Ukraine's economy demonstrated resilience in 2023, achieving 5.3% GDP growth following a 28.8% contraction in 2022. - Ukraine is implementing reforms to improve its business environment and align with European standards in accordance with the EU's Ukraine Facility program. - The guide outlines investment opportunities across nine key sectors: agrifood, transportation and logistics, energy, hydrogen, green steel, critical raw materials, housing and reconstruction, pharmaceutical and medical, and ICT and digital. - For each sector, the guide details the current situation, the impact of the war, key reforms, trends, prospects, and specific investment project examples. - Ukraine has significant potential in green hydrogen production and aims to become a major supplier to Central Europe, with a hydrogen strategy in development until 2050. - The guide also provides practical information for investors, including entry regimes, business setup processes, taxation, and available financing mechanisms and government incentives. - The EU's Ukraine Facility offers substantial financial support for Ukraine's recovery, with at least 20% allocated to green transition projects. The investment guide, Reform Matrix, and Ukraine Facility Plan can be accessed here: Investment Guide - https://buff.ly/3VJPpfC Reform Matrix - https://buff.ly/3Vpuxcl. Ukraine Facility Plan - https://buff.ly/3KMAPxD I would like to thank everyone involved in the preparation of these documents. They are a significant improvement over the last year's documents and proposals and reflect the increasing capabilities of the Ukrainian businesses and government.

A message for the Ukrainian founders building in defense & dual-use tech, and the rapidly growing number of international investors committing capital to the sector. TL;DR (Founders): The money is finally moving, but only focus will capture it. Be clear on your differentiator, raise with economic sense, and prioritize your markets for sales, not cache. TL;DR (Investors): The early window is closed. You can still be on time though. The frontier of defense innovation is in Ukraine; field-tested, data-driven, cost-efficient, and now scaling into global markets. For 2+ years, founders built under bombardment, adapted faster than doctrine, and turned necessity into innovation. Capital didn’t follow. But now it is. Last month in Kyiv and Lviv, we saw more international investors than in the previous two years combined. In 2025, we invited 100+ investors to join us; 35 did (15 have since invested). The old excuses - we don’t invest in defense, Europe doesn’t need an industrial base, what if Russia wins - have collapsed. We heard these a lot; not anymore. (They weren't load-bearing to begin with.) Momentum is accelerating. More funds are forming. More strategic investors are engaging. Russia’s airspace violations into NATO pressed harder on the gas. With such a rapid increase in activity we'd like to share a few observations for founders and investors: For Founders: 1. Know your edge - or you don’t have one. If you can’t clearly define what separates you from competitors, you don’t have a moat. Clarity on differentiation is the foundation of every serious business conversation. 2. Stay disciplined on valuation and runway. Rising demand doesn’t suspend economics. Raise what funds your next 12 months plus a buffer, and back into your valuation by ensuring investors own enough to stay motivated (10–20%). You want partners hungry to grow your company. 3. Sell where your product is needed now, not where bureaucracy drags. Stop chasing U.S. DoD. Your real customers are the nations around you that are buying, deploying, and iterating. Revenue today beats intent tomorrow. For Investors: 1. Field-Proven. Ukraine’s defense startups are battle-tested. Real deployments and reorder rates matter more than presentations or press. If it’s working under fire, it’s already de-risked. 2. Data, Speed, and Cost Are the New Moats. The strongest companies combine proprietary data loops, week-long iteration cycles, and a 3-to-1 cost advantage over Western systems. These create durable edges that compound every month. 3. Dual-Use Scale Meets a Shifting Global Order. Wartime innovation is now fueling commercial and infrastructure markets, and Europe’s re-industrialization guarantees sustained demand. This isn’t a momentary spike: it’s a structural realignment. The capital is coming and the world is finally catching up. Founders: stay sharp. Investors: stay early.

🇺🇦 Ukrainian Innovation Ecosystem — bold, resilient, and full of ideas worth scaling. I’m often asked: “Where do Ukrainian startups find support? Who helps them grow in wartime?” The answer is: right here. Within a vibrant ecosystem of accelerators, incubators, and venture initiatives that continue to work, scale, and build — even under sirens. ☝️ Some of them support women founders. But many still have a long way to go. From defence tech to FemTech, from green energy to social innovation — here are just some of the platforms shaping the next generation of Ukrainian entrepreneurship: 🚀 National & cross-sector • Mission Possible – backing wartime founders with peacetime ambition • YEP Accelerator – with a strong track record of women-led projects • Seeds of Bravery – EU-funded support for Ukrainian entrepreneurs in the EU • 1991 Accelerator – from AI to civic tech • Ukrainian Startup Fund – grant support, including for women-founded ventures • TRMNL4 – community-based acceleration • Radar Tech – innovation meets business • Challenger Accelerator – wellness, sports, and lifestyle • eō Business Incubators – EU & USAID backed, gender-inclusive 🌍 Social innovation & mission-driven ventures • SILab Ukraine – supporting women in social enterprise • Ideas Center UCU – values-led innovation from Lviv • ISE Accelerator & Venture Capital Firm – civic impact and entrepreneurship • Generation H (by SET University) – with a focus on women in HealthTech • U-Nation – ethical and inclusive tech for people 🛡️ Defence & dual-use tech • BRAVE1 – Ukraine’s key defence tech ecosystem • Defence Builder – innovation for the frontline • WinWin Deep Tech Accelerator (project delivery partners are Abt Global and KPMG Ukraine in partnership with AI HOUSE) – deep tech & AI • Vacuum Deep Tech Acceleration – from lab to market 🌱 Green & sustainable innovation • Greencubator – a key player in Ukraine’s green startup space #InnovationEcosystem #UkrainianStartups #WomenFounders #SupportUkrainianWomen #AccelerateHer

🇺🇦Ukraine: Your Next Tech Partner Ukraine isn’t just keeping up with the global tech market — we’re shaping its future. With world-class talent, cutting-edge products, and some of the best business conditions in Europe, Ukraine is where innovation thrives. 6 Reasons to Work with Ukraine 👇 1️⃣ Large Pool of Experts & Companies • A powerhouse of IT expertise — 300,000+ highly skilled tech professionals • A strong network of global partnerships — trusted by Fortune 500 giants like Amazon, Apple and Google • Game-changing Ukrainian products — Grammarly, Preply, GitLab, and more 2️⃣ A Business Ecosystem Built for Growth • Diia.City — one of Europe’s most attractive tax regimes for tech • Seamless business scaling with government-backed support • Thriving startup scene backed by the Innovation Development Fund 3️⃣ Leading the Digital Revolution • Diia — the world's fastest business registration • e-Entrepreneur — full-suite online business services • uResidency — Ukraine’s first global tech product 4️⃣ Global Partnerships & Knowledge Exchange • Digital State UA — connecting Ukraine’s GovTech and IT innovations to the world • CodeUA — a matchmaking hub for global businesses and top Ukrainian IT vendors 5️⃣ Risk Management & Stability • Ukrainian IT companies have battle-tested business continuity strategies • The Ministry of Digital Transformation ensures industry resilience 6️⃣ Ukraine: A Hub for Breakthrough Technologies Ukrainian developers don’t just code — they drive strategies, scale businesses, and build the future. Ready to see the numbers? Check out Digital Tiger Research, a deep dive into Ukraine’s tech potential: 🔗 https://lnkd.in/efqxB5iw #DigitalTiger2024

🛡 Ukraine is at the forefront of defense tech innovation. Anyone interested in defense technology should be closely monitoring the Ukrainian market. 📄 Must-read: Ukrainian defense tech market report by DataDriven 💡 Key insights from the report: 📈 Market Growth: The Ukrainian defense tech market exploded from $0.4 billion in 2023 to a projected $0.8 billion in 2024. This remarkable growth is driven by increased government spending, urgent strategic needs, and a thriving ecosystem of innovative startups. 🚀 Ecosystem Dynamics:  - 300+ defense tech companies, with UAVs dominating the landscape - Surge in accelerators and specialized investment funds - Key players: Brave1 government cluster, D3 VC, and other pure defense tech funds 💰 Investment Trends: - Focus on UAVs, Electronic Warfare, and AI-driven solutions - Growing interest in dual-use technologies - Emphasis on combat-proven solutions with global market potential ⛰ Challenges & Opportunities: - Export restrictions limiting market growth - Push for increased market transparency and long-term contracting - Potential for accessing global markets, particularly in Asia, Africa, and Middle East 🛑 Regulatory Landscape: - Simplified procurement procedures for UAVs - Efforts to align with NATO standards - Ongoing development of AI regulations in the military sphere This report is essential reading for anyone looking to understand or engage with the rapidly evolving Ukrainian defense tech sector. Also, I highly recommend attending the Defense Tech Valley Summit in Kyiv on Oct 3-4. It's the perfect opportunity to connect with key stakeholders in the local defense tech ecosystem. I'll be there.