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Startups Under Fire: The Remarkable Resilience of Ukraine’s Tech Sector

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Startups Under Fire: The Remarkable Resilience of Ukraine’s Tech Sector

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In February 2022, Ukraine’s tech sector was booming. Between 2016 and 2021, the nation’s IT exports tripled to almost $7 billion a 12 months, in accordance with the IT Association of Ukraine. Its universities have lengthy been a formidable manufacturing line for STEM expertise, and hundreds of those younger graduates helped Ukraine first turn into Europe’s again workplace, stocked with builders and designers working for worldwide shoppers, after which an innovation heart in its personal proper, with a movement of cutting-edge startups: From deep-tech and robotics to translation and AI.

The struggle ought to have ended that. Russia’s full-scale invasion has killed or injured tens of hundreds of civilians and troopers, a lot of them pulled from peculiar lives onto the entrance strains. Millions have been displaced from their houses and are actually scattered throughout Europe and past. Russia has focused infrastructure, knocking out energy and telecoms and threatening to chop Ukrainian companies off from their clients and backers abroad.

And but, the tech sector has not simply survived however thrived: By the top of 2022, Ukraine’s IT exports had grown almost 7 per cent, even because the economic system shrunk by virtually a 3rd. These are the tales of how 4 startups have survived, however they’re only a pattern of the hundreds of acts of extraordinary resilience, defiance, braveness, and cooperation in Ukraine’s tech sector.

“Music is a very powerful instrument.”

As a PhD pupil in quantum physics within the dying days of the Soviet Union, Andriy Dakhovskyy would cover bootlegged vinyl of western rock music in his room. “I was lucky not to be caught by the KGB,” he says. “When the Soviet Union fell and you could easily go to a record store and buy Led Zeppelin, something important was missing for me. The feeling of exclusivity, of being underground.”

Dakhovskyy spun his forbidden love of rock right into a profession, ending up establishing Universal Music’s first workplace in Kyiv, and changing into a central determine within the improvement of Ukraine’s music business in its anarchic post-Soviet revival. He obtained Elton John onto Ukrainian TV and produced Kyiv’s first rock opera. As we drive by central Kyiv, he factors out the nightclub he ended up operating, form of accidentally, after being satisfied to spend money on it by a pal in want of a mortgage. It’s now closed, battered first by Covid, then by the struggle.

In 2020, Dakhovskyy launched Djooky with enterprise companions in Ukraine and the US, primarily based on a perception that much less well-known recording artists—notably these from exterior America—get a uncooked deal on platforms like Spotify, the place solely a small variety of high-profile musicians make good cash. “The music industry is heavily, heavily monopolized and centralized,” he says. “I know the system … and I couldn’t change the system from within.”

Djooky is a market the place followers can basically purchase shares in artists, serving to them to construct a profile, with the potential to revenue from their success. When the Eurovision Song Contest was canceled because of the pandemic in 2020, the corporate launched its personal Djooky Music Awards, letting followers vote for his or her favourite track in an enormous multinational competitors that attracted artists and listeners from everywhere in the world. The platform has 200,000 registered customers, submissions from artists from greater than 140 international locations, and has held 15 profitable auctions.

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