Ukraine’s resilient IT sector is considered a key asset in the fight for independence and economic recovery. Here’s how non-Ukrainian investors, companies and other players can get involved.
Since the Russian invasion, Ukrainian tech companies have been forced to take a more global approach.
“We had offices in Europe long before the war started in 2014. However, after a full-scale invasion, we rapidly expanded our presence in Europe by opening new offices in Portugal, Bulgaria, the Czech Republic, Hungary, and several other countries. We also established our presence in Latin America.,” explains Daria Yaniieva, investment director at Sigma Software Labs, the corporate VC arm of Ukrainian tech consultancy Sigma Software.
The software development company is among a host of investors, startups and other players who have joined Global Business for Ukraine (GB4U), an association committed to ensuring that IT companies with Ukrainian origins can flourish and have a global reach.
“By talking to multiple stakeholders all over the world, we understood that there is no single entry point to the Ukrainian ecosystem,” explains Yaniieva, adding: “We have lots of stakeholders but for international partners, it is hard to know who to address.”
“By talking to multiple stakeholders all over the world, we understood that there is no single entry point to the Ukrainian ecosystem. We have lots of stakeholders but for international partners, it is hard to know who to address.”
Daria Yaniieva, investment director at Sigma Software Labs
Luxembourg Ukraine Innovation Guide
To encourage potential partnerships and investments with Luxembourg actors, the delegation visited Luxembourg to promote the Luxembourg Ukraine Innovation Guide. The physical guide, produced by the Ukraine Platform asbl, offers a snapshot of Ukraine’s IT ecosystem, its players and the impressive investments being made there. It also serves to highlight synergies with Luxembourg as well as the advantages Luxembourg can offer Ukraine IT companies.
In November 2023, the association will also launch “Empowering Investors and Startups: Invest Platform by Global Business for Ukraine”. This online resource aims to connect vetted Ukraine founders who have an EU presence directly with potential global investors and partners.
“At the core of our initiative lies a pioneering startup evaluation process, overseen by our Advisory Board,” explains Olga Ksonzenko, Sigma’s director for government relations. On the board are Valery Krasovsky, of Sigma Software Group whose SID fund backs 16 companies, and Vitaliy Laptenok, co-founder of Genesis, one of Ukraine’s largest IT companies, and founder of Flyer One Ventures.
“By joining GB4U, investors gain access to a curated pool of startups, meticulously assessed for their scalability. These emerging companies also benefit from comprehensive support and mentorship from industry leaders, substantially enhancing their prospects for success,” adds Ksonzenko.
“By joining GB4U, investors gain access to a curated pool of startups, meticulously assessed for their scalability. These emerging companies also benefit from comprehensive support and mentorship from industry leaders, substantially enhancing their prospects for success,” adds Ksonzenko.
Olga Ksonzenko, director of government relations at Sigma Software Group
Open for Business
The overarching message that the association wants to communicate is that Ukraine IT companies are open for business: revenue in Ukraine’s IT Services market is projected to reach US$3.13bn in 2023 with IT outsourcing accounting for over a third of the market, according to Statista.
What is more, by adopting business continuity plans, Ukraine IT companies remain stable. Sigma, for instance, was able to be fully operational within two weeks of the 2022 invasion. The company relocated parts of its team to European countries while also continuing to launch new offices in the Western part of Ukraine.
“A lot of people are staying in Ukraine, so we have opened new offices there, ensuring electricity supply and internet connection through the use of Starlink stations to maintain business continuity,” says Yaniieva, adding that the company donates towards Ukraine’s defence. “Together with our partners and customers, we have donated over $4 million to support the needs of the Ukrainian army and people. Additionally, we have established the Sigma Software Unity Fund to aid those affected by Russian aggression.”
Half of the Sigma team remains in Ukraine and the company continues to grow, gaining 40 new clients and 50 projects in 2022.
“We adapted to the changes because it’s our reputation. Our company has been around for 21 years and works with clients like Volvo, Astra Zeneca, Scandinavia airlines. We cannot let our customers down,” says Ksonzenko.
