The Exodus of Ukrainian Startups: A Deepening Crisis in the Innovation Sector

Chas Pravdy - 21 August 2025 16:43

Over the past decade, Ukraine’s startup scene has been experiencing a concerning decline that threatens its future growth and development.

According to the Dealroom CEE Startups 2025 report, the Central and Eastern European region as a whole has seen an impressive fifteenfold increase in the total valuation of startups— a growth rate that significantly surpasses the European average.

Despite this regional progress, Ukraine is rapidly losing its innovative potential due to widespread migration of entrepreneurs and startups to foreign countries.

Data from Vladimir Khaustov, a PhD in technical sciences, indicates that by the end of 2023, approximately 1,500 active startups were operating within Ukraine.

At the same time, the private sector’s valuation in the region stands at approximately 163 billion euros, with Ukraine holding the third position at around 30 billion euros.Alarmingly, there is a strong trend of startups born in Ukraine and the broader region relocating abroad.

Nearly half of the companies in Central and Eastern Europe have moved their headquarters to other countries, and more than 90% of Ukrainian startups have exited the local market to settle elsewhere.

This mass migration underscores the internal challenges and unfavorable conditions for innovation and business development in Ukraine.

Scientific expert Vladimir Khaustov emphasizes that these conditions are a primary obstacle to nurturing the country’s innovative ecosystem.The current situation indicates a shift in how scientific results and research are commercialized.

Startups are increasingly becoming the main vehicle for bringing innovations to market, surpassing traditional intellectual property models.

Khaustov predicts that in the future, startups will replace intellectual property as the primary driver of economic growth and technological advancement.

Yet, this vision remains contingent upon creating favorable conditions that foster entrepreneurship and stem the outflow of talented innovators from Ukraine.

Source

#Economy