Building the Future in a War Zone: Inside Ukraine’s Innovation Revolution
In the face of war, economic instability, and unprecedented disruption, Ukraine’s startup ecosystem has not only endured — it has evolved, adapted, and, in many areas, thrived. What might seem impossible in many parts of the world is becoming reality in Ukraine: building a globally-relevant tech ecosystem under fire.
Ukraine is harnessing digital transformation, forward-thinking policy, and world-class tech talent to build a resilient and globally-competitive innovation economy. Amidst the ecosystem’s milestones, strengths, and strategic focus areas, one theme remains clear: Ukraine’s startup sector embodies the unyielding spirit of resilience.
A Decade of Growth — and a Surge in Wartime Innovation
Ukraine’s startup ecosystem has grown significantly over the past decade, with a sharp inflection in recent years. In 2024, the number of active startups surpassed 2,600, with over 18% of these ventures launched after the onset of war — a powerful testament to the country's entrepreneurial resilience. In November, a major milestone was achieved when the Ukrainian Startup Fund (USF) joined the European Startup Nations Alliance, placing Ukraine high on the innovation map of Europe.
Technology is not only the foundation of our defense today — it is also the engine that will drive Ukraine’s economic recovery and future growth.
“We already have a solid foundation, including a vibrant tech community of more than 300,000 highly-skilled professionals, Diia.City with its globally-competitive legal and tax framework, and targeted government support programs for early-stage founders.”
The numbers reflect this momentum. Ukrainian startups raised $462 million in 2024, with the top 10 funding rounds accounting for $324.4 million. These metrics confirm what Ukraine’s founders continue to prove: innovation endures, even in times of crisis.
Strengthening Defense Innovation: The Role of the Innovation Development Fund
The Innovation Development Fund, through programs like USF and Brave1, is at the heart of Ukraine’s innovation push. These initiatives are designed to catalyze both civilian startups and defense tech innovations — with a shared mission to strengthen national capabilities and advance the innovation economy.
Since its inception, USF has provided 571 grants totaling over $11 million, helping early-stage startups gain traction. USF-supported startups have raised more than $120 million in external funding.
In parallel, Brave1 has become the flagship platform for defense tech development, facilitating over $40 million in investments in 2024 alone, with a target of $100 million for 2025. It currently collaborates with over 290 investment partners.
Challenging times lead to incredibly fast-paced innovation development. For us, the priority is to create an environment where promising startups can get assistance, make new connections, and gain the momentum needed for further growth.
Tech Talent and Education: Building a Digital-First Future
With over 346,000 IT professionals, Ukraine has long been a vital node in the global tech workforce. While more than 120,000 professionals have relocated abroad due to the war, many continue contributing remotely and building international bridges for investment and collaboration.
This diaspora effect presents both a challenge and an opportunity: brain drain on one hand, and a growing global network of Ukrainian tech leaders on the other. “It’s especially important that Ukraine has a high level of technical education and talent,” notes Kushnerska. “They have developed the most vital skill of our time — the ability to adapt to change and unpredictable circumstances.”
To nurture the next wave of innovators, the government is transforming education. The Innovation Development Fund now works with 85 university partners and is creating incubators, accelerators, and startup curricula in collaboration with the Ministry of Education.
WINWIN Strategy and the Rise of AI
Driven by its tech talent, Ukraine is emerging as a hub for Artificial Intelligence, boasting more than 5,200 AI/ML specialists actively contributing to global and domestic projects. In 2023, the Ukrainian government adopted the WINWIN Global Innovation Development Strategy, establishing a roadmap to transform the country into a regional innovation hub by 2030. AI is at the heart of this vision, and Ukraine is home to 243 active AI startups.
These ventures span Fintech, Health, Agtech, and Defense, with growing emphasis on AI-driven public sector solutions. The Ministry of Digital Transformation launched the WINWIN AI Center of Excellence to lead this charge.
Our global mission is to become one of the top three countries in AI development and integration into the public sector by 2030. We are starting with AI transformation of the public sector and defense, and eventually, AI should become part of every strategic sphere — healthcare, education, science, and more.
The 2024 White Paper on AI Regulation set the tone for a forward-looking regulatory approach. Designed to align with the EU’s AI Act, Ukraine’s “soft regulation” promotes innovation while ensuring responsible tech development. The new AI and Blockchain regulatory sandbox — hosted on the Innovation Development Fund’s web portal, Digital State UA — will further accelerate this transformation by providing startups with expert-backed, legally flexible environments to test their solutions.
AI on the Battlefield: Ukraine’s DefTech Frontier
Nowhere is the fusion of AI and innovation more urgent than in defense. Brave1 is currently supporting over 200 AI-powered defense technologies, ranging from photo and video analysis to autonomous drones.
One striking advancement is the development of guided drones with machine vision. These drones can continue targeting and executing missions even if communication is jammed, a critical capability in modern warfare. Future plans focus on drone swarms — intelligent autonomous drone networks managed by a single operator, capable of independent navigation and decision-making.
AI is also being used to power battlefield intelligence systems, automate disinformation monitoring, and create advanced tools for Cybersecurity and situational awareness.
Strategic Priorities for 2025: From Sovereignty to Scalability and the Next Phase of International Support
The path forward for Ukraine’s startup ecosystem is ambitious. Complementing the ingenuity of local entrepreneurs, Ukraine’s innovation engine is also supported by the international community. The EU-funded Seeds of Bravery project, a $22.6 million initiative, is providing grants to Ukrainian startups. So far, it has financed 180 projects with more than $6.8 million disbursed.
In parallel, the WIN2EDIH project acts as a digital transformation gateway, offering services ranging from Deep Tech training to grant guidance and international matchmaking. These collaborations expand Ukraine’s access to global networks and amplify its innovation capacity.
Ukraine’s strategic goals for 2025 reflect a bold and coordinated push toward digital sovereignty, economic resilience, and global competitiveness. Key priorities include launching a pilot framework for AI product development and establishing a dedicated AI incubator to accelerate innovation from ideation to implementation.
A major milestone on the horizon is the development of a Ukrainian Large Language Model (LLM) tailored for public service applications — a cornerstone for digital governance. The government also plans to advance classified AI solutions within the defense sector, ensuring technological leadership in national security.
To support this vision, infrastructure for national AI product development will be expanded, enabling a sustainable pipeline of innovation. At least half of pilot AI initiatives are expected to transition into minimum viable products, with a goal of launching three scalable AI solutions.
The Spirit of a Thriving Ecosystem
Despite war, displacement, and disruption, Ukraine’s startup ecosystem is advancing — rapidly. Its founders, innovators, and institutions have proven their ability to adapt, scale, and lead under pressure, redefining what resilience and innovation mean in a modern startup ecosystem.
Ukraine’s startups are expanding globally, its tech is solving some of the world’s most complex challenges, and its government is laying the groundwork for sustained innovation leadership, leading a new era of innovation born from resilience and driven by purpose.