Ukraine must prioritize transparent mechanisms for exempting employees from mobilization and organizing business travel for technical specialists. Serhiy Tokarev, IT entrepreneur and Co-founder of Roosh Investment Group, discusses this in his op-ed for Ekonomichna Pravda. He stresses that difficulties in crossing borders are the main hurdle for the Ukrainian IT sector, as face-to-face interactions with tech company representatives are critical for securing foreign investments.
“Product presentations, deal negotiations with new partners, and major tech events are all currently inaccessible for Ukrainians in an offline format. We know that Zoom calls can never completely replace in-person interactions or live communication with the global community. This limitation hinders cooperation with international companies,” – Tokarev explains.
IT professionals are key to generating foreign currency for Ukraine. As the conflict with Russia persists, Ukrainians are now focusing on earning money to fund the country’s defense. To support this, transparent legal mechanisms for reserving employees from mobilization and facilitating business travel are essential.
A further issue for Ukrainian tech experts is the lack of international visibility. Foreign investors have numerous concerns about collaborating with Ukrainian companies, including uncertainties about safety in Western regions of Ukraine and the reliability of mobile and internet connections.
To attract investments, Ukrainian tech companies must demonstrate predictability. Entrepreneurs should reassure investors that their teams are in safe areas, their offices have shelters, and they have stable internet connections. Serhiy Tokarev emphasizes that predictability also includes enabling experts to travel abroad for business.
Despite these challenges, foreign investors show significant interest in Ukrainian tech projects. In 2023, deep-tech company Zibra AI raised $500,000 from the Speedrun a16z accelerator. Haiqu, specializing in quantum software development, secured $4 million in investments, while the ed-tech platform Preply attracted $70 million.
“This proves that if a startup’s technology is innovative and promising, investors will consider funding it. It’s crucial to communicate potential risks upfront rather than waiting for investors to ask about them. Ukraine has the potential to lead the global tech market, as evidenced by the ongoing development of the IT sector even during the full-scale war,” – says Serhiy Tokarev.
The Diia.City tax regime is vital in addressing current challenges. Created in early 2022 by the state and the IT sector in Ukraine, Diia.City now includes 847 companies, which have doubled their tax payments to $8.5 billion in just one year.
In February 2024, some Diia.City residents formed Diia.City United to create clear and fair rules for developing Ukraine’s tech industry. Members include notable companies like Ajax, MacPaw, Monobank, Roosh, Genesis, and Netpeak Group. The union’s goal is to enhance tech company operations, foster dialogue between the government and businesses, and advocate for the interests of companies.
According to Serhiy Tokarev, improving the business climate and ensuring the Ukrainian tech sector’s active presence on the international stage will help build a strong and progressive Ukraine.
