Over 90% of Ukrainian startups have relocated their headquarters to other countries due to the war – Forbes

More than 90% of Ukrainian startups have relocated their headquarters to other countries, as investors are reluctant to fund a country at war, and clients are hesitant to close deals online.

Forbes reports this information.

For investors, other critical factors include the free movement of capital—which is restricted by Ukraine’s National Bank—a predictable judicial system, protection of rights, and a developed stock market.

“Early-stage investments already come with high risk, and the added factor of war often becomes the deal-breaker. Teams often hide their origins to avoid scaring off potential clients or investors,” said representatives of Roosh Ventures, a venture capital fund.

Most commonly, founders or the main offices move abroad, while most of the team remains in Ukraine.

In 2024, Ukrainian startups raised almost half as much funding as they did in pre-war 2021—a total of $462 million.