Ukraine and IT incubators

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Ukraine is becoming very hot place given the number of IT incubators opening their doors these days. An incomplete list looks like this: Eastlabs, iHUB, Happy Farm, GrowthUp, Politeco, Wannabiz and VOOMY IT-park. Some implementing western and US models, some inventing their own. From one side, it is a natural trend for the country with these statistics:

  • With only 1% of world’s population, Ukraine has 6% of the world’s physicists, mathematicians, computer programmers, and other highly educated professionals.
  • More than 16,000 IT specialists with a bachelor degree and about 14,000 IT specialists with a master degree graduate from universities each year.
  • Ukraine is among the TOP 10 countries with the most certified IT professionals.

On the other hand, we are late as always. While  US and EU market for IT incubators is overcrowded and will be facing downsizing in the upcoming years, Ukrainian large business sees IT as a very attractive area for investment. First, all other assets – plants, factories, mines, real estate were privatized a long time ago. Second – not many businesses these days can show growth rate well above ten%/year.

Therefore, there is interest here for both IT entrepreneurs and large local business with billions of dollars to invest. Yes, these people often ask founders if they are ready to guarantee the investment with their real estate. Yes, investors ask for yearly royalties. Nevertheless, the whole process moves to the right direction. Ukraine has no oil and gas, but a good deal of brains to build the business around.

Artem Berman

Artem Berman

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