Over 150 startups from Ukraine have received acceleration support. This is one of the main outcomes of the Polish-Ukrainian Startup Bridge (PUSB) project, run by the Cooperation Fund Foundation in collaboration with the Ministry of Development Funds and Regional Policy, and financed by the Polish Aid program of the Ministry of Foreign Affairs of the Republic of Poland. In addition to specialized training and consulting support, seven projects received financial awards during three editions of the Kyiv Tech Hub conference. One of the 2018 finalists, TechNovator, is actively operating in the Polish market and has received public funding under the National Center for Research and Development program. Ukraine is among the top 30 countries with the greatest startup potential, according to the international study StartupBlink. Our eastern neighbor’s high position is due not only to the large number of experienced specialists ready to develop their own products, but also to the low cost of running a business, which attracts more and more Western investors each year. These are the main reasons why the Polish-Ukrainian Startup Bridge (PUSB) project was established three years ago. Its goal was to identify the best business ideas during regional meetups in Ukraine. Then, they were accelerated through training sessions led by experienced Polish experts and provided direct contact with representatives of venture capital funds. All this not only positively impacted the quality of the projects but also helped them expand into foreign markets.
Scale of Operations
Over the three years of the project’s existence, 17 regional meetups were organized in Ukraine’s largest business and academic cities, including Lviv, Odessa, Vinnytsia, Zhytomyr, Dnipro, and Kharkiv. A total of over 1,000 people participated. The project also created a network of mentors who conducted over 300 individual training sessions in 2020 alone. All of this was done in collaboration with Ukrainian institutions at the governmental and regional levels, which contributed to the development of young innovators.
“In addition to regional meetings and mentoring sessions, financial support is also important. The total prize money we awarded to the finalists of the Kyiv Tech Hub conference, which has already become a permanent fixture on the map of important startup events in both countries, amounted to 120,000 PLN. We are very pleased that the projects we support are also recognized in Poland, as exemplified by the startup TechNovator, a finalist of the 2020 Polish Intelligent Development Award,” says Krzysztof Grochowski, lead expert and originator of the Polish-Ukrainian Startup Bridge project.
An Unannounced Test
With the introduction of restrictions due to the COVID-19 pandemic in both Poland and Ukraine, the need arose to adapt the existing event format to the online sphere, which was the only alternative available to organizers. “2020 not only significantly changed our reality but was also full of interesting events and positive feedback. We adapted quite quickly to the prevailing conditions, moving our operations online. Despite the challenges, we made every effort to ensure that startups received a solid dose of knowledge on how to develop their projects in today’s reality. A new format for regional meetups, the Kyiv Tech Hub conference in hybrid mode, and StartupBootcamp—online training sessions organized in cooperation with the Ukrainian Startup Fund—are just some of the solutions implemented since the beginning of the pandemic. “Interestingly, over 80 projects applied to participate in this latest initiative in just one week, which demonstrates the high demand for similar events,” says Łukasz Wawak, project manager of the Polish-Ukrainian Startup Bridge.
Future Plans
In 2019, $510 million was invested in Ukrainian startups and IT companies, which is over 50% more than the previous year. According to data from the Ukrainian Venture Capital and Private Equity Association, $423 million came from the United States, while only $8 million came from Ukraine. PUSB representatives claim that Ukrainian projects have significant potential, but most require the support of experienced, international mentors to apply for venture capital funding or expand beyond their domestic market. Convincing an investor about an idea may seem like a formality, but it requires experience and skill. Young entrepreneurs make many mistakes in this regard, missing out on opportunities to secure additional funding.
“We strive to support creators appropriately to the project’s development phase and their needs, from business model consulting and presentation skills to securing financing. In the future, we would like to more strongly promote Ukrainian projects among venture capital funds so that, after participating in our project, they find investors and can successfully develop and scale,” says Krzysztof Grochowski, adding: “An effective and strong startup ecosystem will further stimulate Ukrainian entrepreneurship, which will impact the development and strength of the economy.” Due to our cultural similarities, I feel a mutual understanding of each other’s needs, and therefore, tangible support.
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The main goal of the Polish-Ukrainian Startup Bridge project is to expand the knowledge of young Ukrainian entrepreneurs and academics about models for commercializing business ideas in Poland and the opportunities for obtaining financing for such projects from entities on the Polish capital market, including venture capital/private equity funds.
The PUSB project mentors are experts with extensive experience in finance, law, public speaking, and marketing. Among them are Łukasz Kowalik, Venture Partner at Simpact VC; Piotr Pągowski, member of the Supervisory Board of CD Projekt Red; Sylwester Pietrzyk, trainer, HR consultant, and owner of Aspekt HR; Roman Bieda, who has over 25 years of experience in management, customer service, sales, and training; and Sebastian Goschorski, Partner at RSM Poland.
