The investment market has been through thick and thin lately. The European Union has been shuttered by the COVID-19 pandemic, as thousands of up-and-coming projects have been put on hold. Yet, the brightest dawn comes after the darkest dusk. Ukraine, one of the most promising European economies, has established itself as a trusted tech partner a long time ago. The country is now the world’s 6th biggest IT vendor that provides top-rate services for clients worldwide. Hence, today, we will discuss five reasons to ensure you why investing in Ukrainian tech start-ups might be a good idea.
1. Immense Talent Pool
Let’s start our conversation where it all begins, right? Ukraine is the country that codes, as per its official IT development agenda because there is a duly developed tech education system. Lviv and Kyiv are the two biggest IT hubs not only in Ukraine, but in Eastern Europe, and there is nothing to wonder about here. Lviv National Polytechnical University leads the way in the country’s hunt for IT experts. Nowadays, more than 200,000 IT specialists work in Ukraine, with a solid load of ideas waiting to be implemented.
2. Favorable Taxation Policies
Ukrainians are benevolent people, and so is their government. The corporate tax in Ukraine is just 19%, while Europe’s average is 25%. Furthermore, if you are an investor willing to help a Ukrainian company grow, you can expect the tax to be reduced to 16%. You might as well be freed from paying taxes during the first three years of doing business in Ukraine, as people here appreciate your desire to help their economy grow.
3. Swift ROI
There is no wonder why lots of international companies are willing to come and work in Ukraine. Renowned industry leaders have opted for investing in Ukrainian start-ups due to several reasons. First of all, this is an international market which is worth approximately $10 billion. Hence, if a company you invest in will amount to a 1% share of the market, you can expect its revenue to reach $100 million a year. Secondly, the majority of Ukrainian start-ups have a chance of becoming profitable within the first two years since launching.
4. A Verified Background
Ukraine is not only an investor’s promised land; it is also a plain that is full of vivid success examples. Ukrainians are capable of creating wonderful things. Ukrainians came up with the first rocket engine, underwater welding, neoteric cardio-vascular surgery techniques, and now they are rocking the tech world. Competera, Depositphotos, Invisible.io, and, of course, Grammarly, a Ukrainian company that has recently achieved the status of a unicorn after have been valued at $1 billion, are just some of the names on the endless list of successful Ukrainian start-ups.
Furthermore, some of the most prolific Danish companies, like MatchOffice, one of the global leaders in the domain of commercial real estate, have already launched their cooperation platforms in Ukraine, making the most of the country’s favorable business conditions and incredibly talented people.
5. Satisfied Clients
Last but not least, we should definitely mention that the Ukrainian tech start-ups have already gathered an army of satisfied customers from all over the world. In many cases, those are the companies from the Fortune 500 list, which surely intensifies an investor’s trust in the Ukrainian established companies and young start-ups.
Let’s Sum It Up
It is crystal clear that Ukraine is a gold mine where opportunities are combined with stability and Ukrainian devotion to the cause. There is hardly a chance to find people more laborious than Ukrainians. If they start working on the project, rest assured they will deliver. Coupled with favorable taxation policies and positive experience of the majority of investors entering the Ukrainian market, there is only one conclusion to make, Ukrainian tech start-ups are worth investing in.