This year’s Web Summit in Lisbon gathered over 900 investors, 2600 startups, and more than 70,000 attendees from 160 countries. We spoke with Olena Bakalo, a business development expert and co-organizer of the Ukrainian pavilion at Web Summit, about the Ukrainian technological ecosystem at Web Summit 2023 in Lisbon.
Olena, how many projects were presented at the Ukrainian booth?
It is important to note that the participation of the Ukrainian delegation this year was made possible through the joint efforts of many co-organizers: the Ministry of Digital Transformation of Ukraine, the Ukrainian Startup Fund, and the Ukrainian Hub, with the support of the USAID Competitive Economy of Ukraine Program and the Embassy of Ukraine in Portugal. The general partner was Roosh, and the partners included WNISEF and UNIT.City, GENESIS, Flyer One Ventures, the NOVA group of companies, and the Ukrainian-American Coordinating Council.
Our goal is to propel Ukraine into the top 5 countries in Europe in terms of the number of startups. The delegation included various players from the ecosystem, including a selected group of 25 startups that comprehensively demonstrated Ukraine’s resilience and attractiveness as a strong player in the global technology scene with significant potential.
The Ukrainian IT sector generates 4% of the country’s GDP and constitutes 12% of its exports. Can you tell me if the state supports projects that were presented at Web Summit, or is it entirely funded by private investors?
The Ukrainian IT industry has been a pivotal sector in the country’s economy for quite some time, with substantial support from the government. The Ukrainian Startup Fund, operational for the past four years, stands out as the largest angel investor in the country, backing over 350 startups with an investment exceeding $8.2 million.
However, in the context of the full-scale war in Ukraine, the government has notably shifted its resources to bolster the defense sector. Before the russian invasion, the government facilitated startup participation in leading global technology conferences by granting funds through the Innovative Vouchers program of the Ukrainian Startup Fund. Presently, these funds are redirected into Ukrainian Ministry of Defense bonds, placing a more significant role in supporting the innovation sector on private investors.
However, the state is actively working to develop the startup ecosystem systematically. We have set a goal to position Ukraine among the top 5 countries in Europe in terms of the number of startups. Consequently, we are placing significant emphasis on creating optimal conditions for venture investment and attracting renowned investment funds and accelerators, such as Techstars, Plug and Play, and Alchemist Accelerator, to operate in Ukraine. These entities need to support Ukrainian startups, which, despite the ongoing war, persist in creating innovative projects, securing funding, and scaling their businesses. This proactive support will empower Ukraine to effectively compete on the international stage, reconstruct its infrastructure, and fortify its economy.
The full-scale war should not hinder Ukraine’s participation in technological events. Therefore, the state actively supports the involvement of Ukrainian delegations in international tech conferences, empowering Ukrainian startups and scale-ups to make a significant impact on the global market.
Do Ukrainian entrepreneurs typically seek investments for their projects, or do they more often invest in foreign startups?
Flyer One Ventures has actively invested over $30 million in more than 60 early-stage startups within four years. In September 2022, Roosh, a technology company specializing in AI and machine learning, invested in Neurons Lab. Furthermore, since its inception, Roosh Ventures has backed notable startups such as Deel, TheGuarantors, Oura, Pipe, Alma, Playco, Dapper Labs, Alter, and Haiqu, among more than 35 others, achieving its first exit just two years into operation.
According to the research “Startups and Business Ecosystem: Common Steps Towards Ukraine’s Recovery”, conducted by Polish-Ukrainian Startup Bridge in collaboration with the Ukrainian Startup Fund and the Warsaw Stock Exchange, 31% of Ukrainian startups successfully secured investment capital in the last year. This indicates that recently, not only foreign entrepreneurs but also Ukrainian business leaders are increasingly demonstrating a growing interest in actively investing in the local IT sector, which has become a significant player in the global market.
As part of the survey, the authors interviewed 107 Ukrainian startups and 54 representatives of business environment institutions and organizations. The findings revealed that 85% of Ukrainian business environment organizations actively provide support not only for traditional businesses but also have offerings for startups.
I cannot help but ask if the number of Ukrainian projects presented at the Web Summit has changed after the full-scale invasion. How have these projects changed?
Despite the state of war, the Ukrainian technology sector continues to operate nearly at full capacity, with Ukrainian startups actively participating in major international tech events such as Web Summit, Viva Technology, Collision, Startup Grind Global, and many others.
Our technology community has perfected the ability to move quickly, build, and implement innovations even under fire.
This year, Ukraine marked its participation for the third time in Europe’s most powerful technology conference, Web Summit 2023 in Lisbon, proudly presenting a record number of 25 startups and scale-ups.
Therefore, undoubtedly, the focus of recent delegations and the projects they represent is on Ukrainian resilience tech.
I think our readers will be interested to know how to get to the Ukrainian stand at the Web Summit. What does an aspiring entrepreneur/startup need to do? Do they need to pass any competition or is it enough to contact you? Tell us how it works.
Everything is straightforward: we have formed an organizing committee that includes the Ministry of Digital Transformation of Ukraine, the Ukrainian Startup Fund, and the Ukrainian Hub. Together, we brainstorm goals and tasks we want to achieve at the summit, create proposals for partners, and engage with each participant individually.
Regarding startups and scale-ups, their selection happens through an “open call”. This is an open application process with specific conditions for startups and scale-ups. Anyone interested can apply, and the selection occurs in two stages. The first stage involves verifying the information in the application and ensuring the company meets the requirements. If everything is in order, the company advances to the second part of the selection. The second stage is the pitch of startups and scale-ups before a jury (all conducted online). Each company has two minutes to pitch and two minutes for questions and answers. Based on the jury’s evaluations, we select the companies that will be part of the official delegation.
