Do not want to take risks because of the war: Ukrainian startups are massively fleeing abroad - Forbes

To spread: because of the war in Ukraine, more and more Ukrainian startups carry their head offices abroad and try to avoid mentioning their origin, although most workers continue to work in the country. This is reported by Forbes. According to him, the war seriously complicated the attraction of investments and expanding the client base for startups. More than 90% of such companies have moved their headquarters abroad.

Investors do not want to invest in a country where war is ongoing and there is no stability, and clients often refuse to enter into transactions through the Internet. The Roosh Ventures Venture Fund notes that capital movement restrictions set by the National Bank of Ukraine further complicate the situation for investors. "Early investments are always associated with high risk, and the war makes these investments even more dangerous.

Therefore, startups try to hide their origin so as not to deter potential customers and investors," the analysts said. According to the newspaper, in 2023, Ukrainian startups managed to attract almost twice less investments than 2021 - only $ 462 million. It is also reported that the number of closed FOPs is increasing in Ukraine. The survey showed that more than a quarter of entrepreneurs intend to stop their activities through tax changes.

The Openatabot platform notes that businesses are actively moving from one regions to another, including Kyiv, Kyiv and Dnipropetrovsk regions. We will remind that according to the data of the platform of the Openatable, for each new FOP in Ukraine there are two closed - such data were at the end of 2024. 27% of Ukrainian entrepreneurs intend to close their businesses because of high tax pressure and economic difficulties.