Ukraine must establish transparent procedures for exempting IT specialists from facilitating their business travel and mobilization to attract foreign investments. Serhii Tokarev, IT entrepreneur and Co-founder of the investment group Roosh, highlighted these issues in his op-ed for Ekonomichna Pravda. The businessman notes that the biggest challenge these days for the Ukrainian IT industry is crossing borders, as face-to-face meetings with IT companies are extremely important for investment.
IT professionals significantly contribute to Ukraine’s foreign currency inflows. As the war in Ukraine persists, Ukrainians are focused on generating income to assist the country’s defense efforts. To facilitate this, the country required transparent legal mechanisms that would help reserve employees from mobilization to the army and organize business trips through the country’s border.
“Presentations of tech products, deal discussions with potential partners, and major tech events are currently unavailable to Ukrainians offline. We recognize that Zoom calls cannot entirely substitute in-person interactions or live communication with the international community. This restriction hinders cooperation with global companies,” Tokarev explains.
Another big challenge for Ukrainian tech companies is associated with lacking the marketing efforts on the international market. Foreign investors may hesitate to collaborate with Ukrainian tech companies due to uncertainties about safety in the country and possible problems with mobile and internet connections.
Ukrainian tech companies need to show predictability to attract foreign investments. Entrepreneurs must assure investors that their employees live and work in safe places, their offices in Ukraine are equipped with shelters, and they have reliable internet connections. Serhii Tokarev emphasizes that predictability also involves enabling tech experts to travel abroad for business purposes.
Despite these obstacles, foreign investors are showing substantial interest in Ukrainian tech projects. In 2023, deep-tech company Zibra AI raised $500,000 from the Speedrun a16z accelerator. Quantum software development startup Haiqu secured $4 million, while the ed-tech platform Preply attracted $70 million in funding.
“This demonstrates that if a startup’s technology is cutting-edge and promising, investors will consider funding it. It’s essential to communicate risks transparently rather than waiting for investors to ask about them. Ukraine has the potential to become a leader in the global tech market, as evidenced by the resilience and progress of its IT sector despite the full-scale war,” Serhii Tokarev asserts.
The Diia.City tax regime is crucial in addressing these challenges. Established in early 2022 by the state and the IT sector, Diia.City now includes 847 companies that have doubled their tax payments to ₴8.5 billion within a year.
In February 2024, some Diia.City residents formed Diia.City United to create clear and fair rules for developing the tech industry in Ukraine. Members include prominent companies like Ajax, MacPaw, Monobank, Roosh, Genesis, and Netpeak Group. According to Serhii Tokarev, the union aims to enhance tech company operations, promote dialogue between the government and businesses, and advocate for and protect the interests of these companies.
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