Despite the ongoing war, Ukraine’s tech sector continues to defy expectations, demonstrating resilience and impressive growth. In 2024, Ukraine’s startup ecosystem climbed to 46th globally, up from 50th in 2022. Over 2,600 active startups are driving innovation, with overall ecosystem value tripling since 2020. IT services exports reached $6.7 billion in 2023, accounting for 41% of the country’s total service exports.
UKRAINE AS A GLOBAL TECH HUB: POWERED BY TOP TECH TALENT
Ukraine ranks 2nd in Central and Eastern Europe for IT outsourcing and 7th globally for IT competitiveness. The country is home to more than 346,000 IT professionals, forming a formidable talent pool. However, key challenges such as talent retention and funding gaps remain critical obstacles that must be addressed to fully capitalize on the sector’s potential.
TIME TO SCALE UP: FUELING GROWTH IN UKRAINE’S ECONOMY
Scaleup entrepreneurs are the driving force behind Ukraine’s economic engine, yet specialized support is crucial to accelerate growth. With limited capital and high demand dynamics, Ukrainian tech companies that reach scale tend to be more mature and expand over longer timelines. These “international first” businesses are central to boosting Ukraine’s global competitiveness and unlocking significant growth opportunities.
REVERSE BRAIN DRAIN AND LEVERAGE NEW GLOBAL NETWORKS
Around 120,000 skilled Ukrainian tech professionals have relocated due to the war, forming new networks abroad. It’s vital to implement policies to reverse this brain drain while also leveraging these networks to attract foreign investment and spark new ventures that can strengthen Ukraine’s economy.
IMPROVING CONNECTEDNESS: THE KEY TO NEW ECONOMIC OPPORTUNITIES
To unlock its full potential, Ukraine must prioritize enhancing its global connectivity. Easing regulatory barriers, facilitating free capital flow between tech hubs, and engaging talent on a global scale should be top policy priorities for driving future economic growth.
To learn more about Ukraine’s Startup Ecosystem, download the report here. Scaling Up Ukraine’s Tech Sector Oct 2
Or full version here.
