Developing transparent processes for exempting employees from mobilization and organizing business travel for tech specialists is crucial for Ukraine. Serhiy Tokarev, IT entrepreneur and Co-founder of Roosh Investment Group, highlights these priorities in his op-ed for Ekonomichna Pravda. He emphasizes that the challenges related to crossing borders are currently the biggest obstacle for the Ukrainian IT sector, as in-person communication with tech company representatives is vital for attracting foreign investments.
“Product presentations, discussing deals with new partners, major tech events—all of this is currently unavailable for Ukrainians in offline format. And we understand that Zoom calls can never fully replace offline interactions or live communication with the international community. All of this hinders cooperation with international companies,”notes Tokarev.
IT specialists are significant contributors to Ukraine’s foreign currency inflows. Given the ongoing war with Russia, Ukrainians are focused on generating income to support the country’s defense efforts. To facilitate this, it is essential to implement transparent legal mechanisms for reserving employees from mobilization and organizing business trips.
Another challenge for Ukrainian tech companies is the lack of international promotion. Foreign investors have many concerns about collaborating with Ukrainians, primarily due to uncertainties about the country’s safety, especially in the Western regions, and the stability of mobile and internet connections.
To attract investments into Ukrainian projects, it is crucial to demonstrate predictability to potential investors. Ukrainian tech entrepreneurs need to assure investors that their teams are relocated to safer areas, their offices are equipped with shelters, and they have reliable internet connections. Serhiy Tokarev points out that predictability in working with Ukrainians includes enabling experts to travel abroad.
Despite these challenges, there is noticeable interest from foreign investors in Ukrainian projects. In 2023, deep-tech company Zibra AI secured $500,000 from the Speedrun a16z accelerator. Haiqu, a startup focused on quantum software development, received $4 million in investments, and the edtech platform Preply secured $70 million.
“This once again proves that if a startup’s technologies are cutting-edge and show potential, investors will consider funding the project. It is important to communicate risks upfront rather than waiting for investors to inquire about them. Ukraine has the potential to become a leader in the global tech market, as demonstrated by the resilience and development of the Ukrainian IT sector despite the full-scale war,” emphasizes Serhiy Tokarev.
Addressing the current challenges, the Diia.City tax regime is playing a significant role. Developed in early 2022 by the state and the IT business sector, Diia.City now hosts 847 companies that have doubled their tax payments to ₴8.5 billion in one year.
In February 2024, some Diia.City residents formed the union Diia.City United to establish clear and fair rules for developing the tech business in Ukraine. Members of this union include notable companies like Ajax, MacPaw, Monobank, Roosh, Genesis, and Netpeak Group. The union aims to enhance the efficiency of tech companies, foster dialogue between the government and businesses, and advocate for the interests of companies and protect them.