Resilient Innovation: Ukraine’s Thriving Startup Ecosystem at the Luxembourg Business Forum
Ukraine’s Business Resilience and the Role of Innovation
The Third Ukraine Resilience Business Forum, held on March 5, 2025, at the Luxembourg Chamber of Commerce, brought together policymakers, business leaders, and investors to explore opportunities for Ukraine’s economic revival. The event featured high-level discussions on financial resilience, investment opportunities, and the role of innovation in shaping Ukraine’s future.
Opening Panel and Key Speakers
The forum was officially opened by Ms Evgenia Paliy, President of the Luxembourg-Ukraine Chamber of Commerce and Mr. Carlo Thelen, Director-General of the Luxembourg Chamber of Commerce. Their speeches emphasized the importance of cross-border collaboration, financial resilience, and the need for sustained international engagement to support Ukraine’s economic recovery.
The opening panel also featured insights from Mr. Xavier Bettel, Deputy Prime Minister of Luxembourg, Minister for Foreign Affairs and Foreign Trade, reaffirming Luxembourg’s commitment to Ukraine’s reconstruction and long-term prosperity and Mr. Andrew McDowell, Director General of EIB Global who gave insight into the provisions being made in terms of Financing support.
The forum also heard from Ms. Olha Zykova, Deputy Minister of Finance of Ukraine, on how Ukraine was managing and allocating support as well as a large presence from Kharkiv, headed by Mayor Ihor Terekhov, that had made the trip to update us on how Kharkiv was remaining resilient. We also heard from H.E Ambassador Ronald Dofing, Ambassador of the Grand Duchy of Luxembourg to Ukraine.
Exploring Ukraine’s Thriving Startup Ecosystem
A key discussion at the forum was the panel “Resilient Innovation: Ukraine’s Thriving Startup Ecosystem,” which brought together startup founders, corporate leaders, and ecosystem enablers to discuss Ukraine’s tech landscape, international partnerships, and investment opportunities. Moderated by Inna Perepelytsya, Senior Advisor for Startup Relations at Luxinnovation, the panel featured:
- Pascal Fabing – Private Sector Expert, LuxDev
- Olga Ksonzenko – Director of Government Relations, Sigma Software Group
- Julia Bialetska – CEO & Co-Founder, S.Lab
- Pavel Panasjuk – COO & Co-Founder, H+H LABS (project HYDRATICO)
- Ihor Kobzar – CEO & Co-Founder, Funely AI
The discussion focused on the resilience of Ukraine’s startup ecosystem despite the ongoing war and the vital role of international partnerships in fostering innovation.
The panel was structured as an engaging discussion lasting approximately an hour, followed by a 15-minute Q&A session, where the audience had the opportunity to ask questions and gain deeper insights.
It featured a diverse group of six speakers representing both Ukraine and Luxembourg, including three startup founders, one corporate leader, and two ecosystem enablers. This composition provided a well-rounded perspective on innovation, resilience, and the future of Ukraine’s startup ecosystem.
Seeds of Bravery: Bridging Ukrainian Innovation with Europe
For the second time, Seeds of Bravery participated in the forum, reaffirming its role in integrating Ukrainian startups into the European ecosystem. As a consortium partner with a presence in Luxembourg, the initiative has played a crucial role in fostering innovation, supporting at least 200 Ukrainian startups with €12 million in grants.
Funded by the European Innovation Council (EIC), Seeds of Bravery aims to connect Ukrainian founders with global markets, attract further investment, and provide critical training for entrepreneurs navigating wartime challenges.
Ukraine’s Startup Ecosystem: Resilience and Growth Amid Crisis
Ukraine remains a leading hub for tech talent in Europe, boasting over 350,000 tech specialists and more than 280 universities. Despite the war, the country’s startup ecosystem has demonstrated remarkable resilience:
- While startup investment dropped by 45% in 2022, there was a 34% rebound in 2023, reaching $292 million, with further growth in 2024.
- Ukrainian startups are adapting to global markets at an accelerated pace—83% have shifted to international markets, reducing the time to scale from 2.3 years to just 0.8 years.
- The rise of distributed teams has become the norm, with 67% of startups working across three or more countries.
The Role of International Support & Investment
International support remains a key driver of Ukraine’s startup success. Pascal Fabing (LuxDev) highlighted Luxembourg’s interest to further support the development of the startup ecosystem in Ukraine, drawing on experiences from other innovation ecosystems and learnings from specific needs of Ukrainian startups.
Olga Ksonzenko (Sigma Software) emphasized the role of corporations in fostering Ukrainian innovation through mentorship, partnerships, and investment. Meanwhile, Julia Bialetska (S.Lab) and Ihor Kobzar (Funely AI) shared success stories from the Seeds of Bravery program, which helped their startups gain international exposure and funding. Pavel Panasjuk also highlighted the importance of non-dilutive mechanisms grants and EU’s support for startups expanding into global markets.
Ihor Kobzar highlighted the importance of initiatives like Seeds of Bravery. He noted that wartime conditions significantly limit investor interest, making equity-free support essential for early-stage startups to gain initial traction, secure first international customers, and attract further investment without prematurely diluting equity, as Funely AI has successfully done.
Challenges and Opportunities for Ukrainian Startups
War has created significant barriers to startup growth. Pavel Panasjuk (Hydratico) described how supply chain disruptions have increased costs and delayed prototype testing, while travel restrictions between Ukraine and the EU have complicated logistics, fundraising, and collaboration.
However, women entrepreneurs are playing an increasingly significant role in Ukraine’s economic resilience. Since 2022, the share of women-led startups in Ukraine has grown from 40% to 61%, demonstrating their impact on the country’s recovery. Julia Bialetska emphasized that diversity is not just a social goal but a competitive advantage that strengthens businesses.
Ihor Kobzar highlighted how ongoing missile attacks disrupt daily life and productivity, while travel restrictions isolate Ukrainian startups from global communities, complicating fundraising and international collaboration. Despite these hurdles, he emphasised Ukraine’s unique opportunity for international investors to engage with resilient entrepreneurs in an uncrowded market.
Government Initiatives Supporting the Startup Ecosystem
The Ukrainian government has introduced several initiatives to foster a strong startup ecosystem. Olga Ksonzenko highlighted CODE UA, a platform designed for business matchmaking within Ukraine’s tech sector. Additionally, a new platform—currently under development by Sigma Software—aims to unite corporations, startups, universities, and researchers under one ecosystem.
Ukraine is also attracting global support for digitalization efforts, with Kyiv becoming home to the world’s second GovTech center as part of the World Economic Forum network. Furthermore, Diia City, a special tax and legal regime, is creating a favorable environment for IT and defense technology startups.
Luxembourg’s Business Partnership Facility: An Opportunity for Ukrainian Startups
LuxDev presented the Business Partnership Facility (BPF) as a funding instrument that Ukrainian startups can leverage. BPF focuses on partnerships aiming at sustainable development goals between Luxembourg or European companies and stakeholders in developing markets including Ukraine, co-financing up to €200,000 (covering 50% of business initiatives with local impact).
A new BPF call is opening this week, with applications accepted until April 30. One example of a successful BPF project is a Luxembourg company that partnered with a local firm in Kosovo to establish a training center specializing in financial industry accounting. Ukrainian startups are encouraged to explore similar opportunities.
Looking Ahead: Strengthening the Ukraine – Luxembourg Startup Corridor
As Ukraine rebuilds, international investment is not just a necessity – it is a business opportunity. Ukrainian startups have demonstrated they can thrive under extreme conditions, and Luxembourg’s innovation ecosystem provides a crucial gateway for scaling their solutions globally.
The forum concluded with a strong call for continued engagement, funding, and policy support to ensure Ukraine’s startup ecosystem becomes a driving force in the European innovation landscape.
Inna Perepelytsya closed the panel by highlighting not only the resilience of Ukraine’s startup ecosystem but also the power of innovation through collaboration. Innovation thrives when we break silos—because silos lead to stagnation, while collaboration drives progress.