Ukrainian startups should focus on dual-purpose developments, and to attract investment from large funds; Ukraine should optimize its legislation.

The head of the Ukrainian Association of Innovative Companies (UAFIC), Rostyslav Dyuk, said that at the beginning of the full-scale war, all startup funding was frozen because the money went to the country’s defense. Currently, the Ukrainian Startup Fund remains the primary investor.

“Ukraine is now focused on supporting startups in the direction of miltech such as the Brave1 cluster. We now need to focus on developing dual-purpose smart solutions, as this may be in demand in Ukraine and abroad,” the expert said.

He added that when discussing financing from classic venture funds, this investment direction is not working well enough because of the war. Appropriate legislation could correct the situation, but Ukraine has not had time to implement changes due to the invasion. Therefore, large investment funds cannot enter our country and are in no hurry to do so because of the risks. However, certain private venture funds and angel investors are now ready to invest in Ukrainian startups.