How Start-Up Companies in Ukraine Are Transforming the Tech World One Step at a Time

Ukrainian companies have diversified their services beyond traditional software development. They now offer advanced solutions in AI, machine learning, cloud computing, data analytics, and cybersecurity, catering to a broad range of industries, including defense, finance, space tech, healthcare, green tech, and more.

As of spring 2024, its value was estimated at €28 billion, positioning it among the leading startup ecosystems in Central and Eastern Europe. Furthermore, January 2024 marked a record period for venture capital funds targeting innovative projects, raising more capital than any time since mid-2022.

In June, 2024, Kyiv witnessed the announcement of Ukraine’s placement in the updated Global Startup Ecosystem Index 2024 by StartupBlink, a research center focused on ecosystem development and global innovation analysis. Ukraine ranked 46th out of 100 countries in this index. Rankings are based on factors such as engagement, funding, and employment, and Ukraine’s performance in this global network has drawn attention.

The Ukrainian startup ecosystem is highlighted by its 633 tech companies, two of which have achieved “unicorn” status with valuations exceeding $1 billion.

“The driving force behind Ukraine’s startup success is its pool of talented developers, highly sought after by global companies,” noted in the report.

Defense Tech

Rapid advancements and innovations in defense technologies have given Ukraine a competitive edge on a modern battlefield. Companies and tech professionals have collaborated closely with the government and military to develop and deploy technologies that enhance combat capabilities, surveillance, and logistics. According to Forbes, Ukraine now has over 200 registered companies producing military drones and 50 companies specializing in electronic warfare systems, developing warfare solutions for the Armed Forces of Ukraine, some of which have been deployed to the front for the first time.

Ukraine has been ramping up the production of its own drones. Companies like Ukrspecsystems, UA Dynamics, and Vyriy are known for implementing the newest technologies, carrying out strikes with higher precision, upgrading drones to carry heavier loads, staying airborne for longer periods of time, and developing innovative robots with the help AI technologies, such as Deep Learning, which analyzes vast amounts of data to help the software make instant decisions in response to a real-time video.

Drones have changed the course of the war and attracted the attention of private investors. Drone production had a 100-time increase, according to Prime Minister Denys Shmygal. Long-range missile drones, such as Bober, Leleka, Morok Lutiy, and the newest innovation that recently made headlines, Palianytsia, have begun to reach oil depots deep within Russia, covering distances of more than 1000 km into Russian territory and gradually reducing it’s oil refining capacity.

To consolidate all the defense tech initiatives, a government-led initiative, Brave1, was created. This initiative focuses on military applications of AI, particularly in drone warfare. This program aims to develop and deploy technologies swiftly, having approved around 700 inventions by the Ukrainian Armed Forces.

Roboneers, a Ukrainian engineering company initially created by a group of volunteers, has established itself as a leading manufacturer of unmanned aerial vehicles (UAVs), unmanned ground vehicles (UGVs), remote weapon stations (RWS), anti-aircraft systems, and situational awareness solutions. The company’s expertise in integrating artificial intelligence, radar technology, and anti-drone countermeasures has been instrumental in developing products for current military applications.

In 2014, before officially becoming Roboneers, several separate volunteer groups worked on creating “Shablya,” a remote robotic turret that became one of the first robots on the frontlines. In 2017, the volunteers united into the Roboneers project and received a $2 million investment to develop new robotic prototypes.

Since then, Roboneers has focused on creating innovative robotic solutions tailored to the specific needs of the Ukrainian Armed Forces. Their products have been deployed in real-world combat situations, demonstrating their effectiveness and reliability.

After the beginning of the Russian invasion of Ukraine in 2022, the company transferred up to 200 different robots to the front lines for free.

Himera is another Ukrainian company founded by Mykhailo Rudominskyi and Oleksii Oliynyk. The current team consists of two dozen people.

Himera has developed a cutting-edge tactical communication system designed to operate in harsh electronic warfare environments. The startup produces secure tactical military radios that are “invisible” to Russian interception and deciphering. Thousands of Himera handsets are already being used by the Ukrainian Defense Forces. In late February 2024, the startup secured $525,000 in funding from a group of angel investors, including the United Angels Network and several anonymous private investors. The company plans to use this investment to release a new version of the product in 2024, allowing for rapid iterations and ensuring the system remains relevant and reliable.

Medical Tech

Ukrainian medtech companies are at the forefront of innovation, developing solutions that address a wide range of critical healthcare needs, from unique war-related injuries rehabilitation to telemedicine and wearable health monitoring to AI-driven diagnostics and virtual reality training. The industry’s ability to integrate advanced technologies into practical healthcare applications highlights the growing role of Ukraine in the global medtech landscape.

Esper Bionics, founded in 2017 by Dmytro Gazda and three other Ukrainians—Anna Belevantseva, Borys Lobanov, and Ihor Ilchenko—set out to develop a unique self-learning prosthesis prototype that would be much more affordable and effective.

Since 2018, Esper Bionics won numerous awards, millions of dollars in grants, and recognition from US Secretary of State Antony J. Blinken, who visited the company’s production facilities in May 2024.

Esper Bionics has garnered significant recognition for its flagship product, the Esper Hand. This self-learning bionic prosthesis, manufactured in Kyiv, utilizes digital signal processing, artificial intelligence (AI), and machine learning (ML) technologies. The Esper Hand learns user behavior, predicting movements and intuitively changing grips to seamlessly integrate with the user’s life.

The company’s success, particularly with the award-winning Esper Hand, positions Ukraine as a leader in this emerging field of human augmentation technology.

CheckEye, a Kyiv-based company founded in 2021 by Kirill Goncharuk, has developed an innovative AI-powered solution to detect and prevent diabetic retinopathy, a leading cause of blindness in working-age adults. The cloud-based platform can identify eight eye conditions in just ten minutes and detect problems even before the patient is aware of any diabetes-caused sight deterioration.

Soon after its launch, CheckEye began expanding its operations just as the war commenced. The project team collaborated with the Chernivtsi Regional Military Administration, the Ukrainian Diabetes Federation, and the Filatov Institute for Eye Diseases to implement a free mass eye screening program for thousands of people, marking Ukraine’s first AI-powered mass eye screening initiative.

To date, the screening has been administered to 1,000 individuals in Chernivtsi, Western Ukraine, with a 92% accuracy rate. CheckEye and The Filatov Institute for Eye Diseases are also working on a prototype for eye screening in newborns, which would be the world’s first.

IT sector

Since the 1990s, the IT sector has been the rising star of the Ukrainian economy, creating high-paying jobs, attracting thousands of new recruits, and attracting millions in Venture Capital.

Ukraine’s IT sector has shown remarkable adaptability to wartime challenges. Initiatives such as the IT Army of Ukraine have been formed, comprising thousands of volunteers, including tech experts, who use their skills for cyber defense and countering disinformation. Tech companies have also developed applications to support civilian safety, such as air raid alert systems and tools for locating shelters. Additionally, Ukrainian tech talent has contributed to projects aiding refugees and providing humanitarian aid coordination.

SoftServe, is one of Ukraine’s largest and most successful IT companies, founded in 1993 by a group of Lviv-based scientists and engineers. Initially established as a software development firm, SoftServe has since evolved into a global leader in digital consulting and IT services. The company provides cutting-edge solutions in areas like cloud computing, artificial intelligence, cybersecurity, and big data, serving clients across healthcare, retail, financial services, and technology industries. With over 13,000 employees, SoftServe operates in 50 locations across 12 countries.

SoftServe has built a reputation for delivering innovation-driven services to Fortune 500 companies. Its commitment to education and development is reflected in SoftServe University, an internal platform that nurtures talent and promotes continuous learning. In recent years, the company has remained a pivotal player in Ukraine’s tech ecosystem while expanding its global presence. SoftServe is also known for its strong corporate social responsibility, contributing to various charitable initiatives and fostering Ukraine’s IT industry growth amidst war.

MacPaw, is a leading Ukrainian tech company, founded in 2008 by Oleksandr Kosovan. Specializing in macOS software, the company gained international recognition with its flagship product, CleanMyMac, a highly effective tool for system optimization and maintenance that quickly became a favorite among Mac users worldwide. What began as a small startup in Kyiv has grown into a well-established name in the global tech scene, with over 30 million users across 185 countries. The company claims that every 5th MacBook on Earth has at least 1 app by MacPaw.

In addition to CleanMyMac, MacPaw expanded its portfolio with Setapp, a subscription service that provides users access to a curated library of premium Mac apps. Today, MacPaw operates with a team of over 250 employees and continues to innovate, staying at the forefront of macOS software development. Despite its global success, the company remains deeply committed to its Ukrainian roots, actively contributing to Ukraine’s tech community and supporting various social and humanitarian initiatives.

Film Tech

Ukraine has been making a name for itself on the global film stage for several decades. Among recent trends in the Ukrainian film tech are increasing use of drones, advancing editing software, adoption of virtual production techniques and emerging of high-quality visual effects (VFX) and post-production work. Besides giants like Filmotechnik, the Ukrainian film industry has also seen a surge in independent filmmaking, driven by advancements in affordable film tech and the unequivocal support from around the world.

Filmotechnic is a Ukrainian company founded in the 80s by Anatoliy Kokush, a Ukrainian engineer and inventor. Kokush is renowned in the film industry for his innovative work in camera support technology and was awarded two Oscars (Academy Awards for Scientific and Technical Achievement) in 2006 for the development of the Flight Head stabilizer, which can be mounted on cranes, camera cars, helicopters, and other platforms, providing stability and control during high-speed action scenes and complex stunts.

The company is known for developing robotic camera systems like Technoscope, U- CRANE AutoRobot, rail camera systems, and many other specialty rigs. These technologies allow for smooth, precise camera movements that can extend or retract during a shot, creating camera angles that are difficult to achieve with traditional cranes. It has been used in numerous blockbuster movies, which include the James Bond series, Star Wars, Pirates of the Caribbean, Spider-Man, and Titanic to name a few.

Filmotechnic has a significant global presence, with offices and rental facilities in major film production hubs, including Los Angeles, London, Mumbai, and Beijing. Their equipment is widely used not only in Hollywood but also in European and Asian film industries.

IronGlass is a Ukrainian company from Zaporizhzhya that specializes in modifying and rehousing vintage Soviet-era lenses like Helios, Jupiter, and MIR, making them suitable for modern digital cameras. These lenses are highly valued by filmmakers for their unique character, including swirly bokeh, distinctive flares, and soft focus, which can add a vintage quality to modern video productions.

The lenses have been used in a recent masterpiece, Dune 2. This was announced on social media by IronGlass’s Konstantin Garykavy.

“After almost two years of waiting, we can finally say that lenses produced by IronGlass x VLFV Lens Rehousing — User Group were actively used in the filming process,” he wrote.

The development of the lens body and mechanics began in 2021, the first prototypes were produced in 2022 — some team members worked remotely from the trenches.

In addition to Dune 2, custom IronGlass lenses were used in The Batman (2022), The Pope’s Exorcist (2023) and The Creator (2023).

Women in Tech

In recent years, the Ukrainian IT sector has seen a rapidly shifting gender dynamic. According to DOU surveys, the share of women specialists in tech rose from 7% in 2011 to 22% in 2020. More recent data shows that women in Ukraine hold about 30% of management positions in the technical sector. The war has led to more women stepping into leadership roles within the tech industry due to men being called to military service. This shift has empowered many women to start their own tech companies and assume more senior positions. Women’s representation in the Ukrainian tech industry has therefore, become more pronounced, though the gender gap has not been closed. Numerous surveys and studies show that companies with higher gender diversity grow faster and deliver higher financial returns.

Kyiv-based BetterMe, co-founded by Victoria Repa, is a health and fitness app with over 150 million installs. Its flagship app often ranks among the top five apps on the App Store in the health and fitness section.

In 2023, BetterMe partnered with Esper Bionics and Future For Ukraine to develop the “Limb Loss Workouts” program for amputees. This system is designed to assist amputees in regaining limb functionality and preparing for prosthetics. The program offers 200 targeted training workshops, catering to both upper and lower limb loss, helping individuals enhance their physical capabilities and improve their quality of life.

BetterMe also joined forces with the World Health Organization in Ukraine, Olena Zelenska, and the NGO “Barrier Free” to address mental health issues. “Barrier Free,” established in response to the invasion of Ukraine and advocates for equitable access to mental health services, worked closely with BetterMe to create a digital self-help tool titled “Doing What Matters in Times of Stress.” This illustrated guide provides accessible and practical self-help techniques for managing stress, designed to be utilized by individuals regardless of their location or circumstances, thus offering crucial support in challenging times.

Veronika Yurchuk co-founded Traces AI with Kostyantyn Shysh in 2018. Traces AI provides AI video analytics for companies in the security sector.

Unlike traditional facial recognition systems, Traces AI’s technology, pioneered by Yurchuk, uses computer vision to analyze a person’s unique physical characteristics, such as clothing and accessories, while preserving anonymity. This approach helps address ethical concerns about facial recognition, especially eliminating racial bias.

The company’s founders claim that the algorithm has an accuracy rate of 98%. They guarantee that the person being searched for will be among the top 5% of the list. In other words, if 10,000 people pass through a camera, the person they’re looking for will definitely be among the first 500 people on the list.

With over 35,000 connected cameras and processing 150 million videos in a year, Traces AI has a significant market presence. The company has received funding from Y Combinator and Accellabs, valued at $10.8 million.

In 2022, the Ukrainian government launched the Diia City initiative, a special legal and tax framework to create a favorable environment for IT companies. This initiative offers tax benefits, simplified regulations, and incentives for foreign investors. The program has already attracted numerous tech firms to register under its umbrella, further boosting the industry’s growth.

The international business community has also rallied to support Ukrainian startups. Google established the Ukraine Support Fund, the EU integrated targeted support for Ukraine in its Horizon Europe Research and Innovation Programme, and US-based Network VC created a dedicated Venture Fund and Support Programme for Ukrainian startups.

The Ukrainian tech industry is very sensitive to global trends, notably green tech and AI. As the industry continues to expand and innovate, it is likely to remain a stabilizing force in Ukraine’s economy, contributing to recovery and growth in the years to come.