The Current Wave: New breed of Ukrainian tech entrepreneurs seek success in global markets, Part 5

Most Ukrainian startups do not generate any income, finds study

In late 2021 the Polish-Ukrainian Startup Bridge — teaming up with Warsaw Stock Exchange and the Ukrainian Startup Fund — conducted a study about Ukrainian startups. Some 158 entrepreneurs were interviewed, providing a non exhaustive but valuable picture of the local startup scene. The research resulted in a 35-page report, released recently and available for free. 

Here are the main findings of this report:

  • Most of the surveyed startups have been operating for no more than three years.
  • More than half of them are located in Kyiv.
  • The majority of startups are limited liability companies or one-owner businesses.
  • Almost one in two startups is at the pre-seed initial stage. 
  • Among the surveyed enterprises, more than half do not generate any income. The vast majority are bootstrapped; some 39% have no external source of financing. One in three startups also benefited from the support of the Ukrainian Startup Fund; another 18% from other public grants.
  • Most customers of startups are small and medium-sized companies and individuals.
  • Almost two thirds of startups say they operate on the global market while 12% are not present on the Ukranian market at all.
  • The most frequently cited obstacle to international development is access to financing. More than half of startups also mentioned difficulties in finding clients and struggles in finding business partners for cooperation.
  • More than half of the surveyed startups experience strains in recruiting new employees with appropriate skills.

Click here to download the report.

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