Support for Ukrainian IT businesses

The Ukrainian government recently unveiled a new economic strategy for the country during the war. Specifically, the state plans to provide grants for business start-ups, acquire some new IT companies, and fund the training of future IT professionals.

In addition, the European Innovation Council has allocated 20 million euros to support our IT business.

In this article, we will tell you who can count on receiving assistance from the state and European partners.

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Government grants for IT specialists

At the regular meeting of the Cabinet of Ministers of Ukraine on June 10, 2022, state programs aimed at supporting domestic businesses, particularly the IT industry, were announced.

The government announced the prospects for a new economic strategy for Ukraine andstatedabout maximum interest in IT entrepreneurs and startups.

In total, eight programs aimed at creating jobs through business support were announced. These included two programs for IT professionals.

State program for financing IT startups

In recent years, IT specialists have become a true middle class, and their work deserves government support. The government has initiated assistance for those who want to work in this field.

According to Ukrainian Prime Minister Denys Shmyhal, the state is interested in the creation of Ukrainian startups and is ready to invest in new IT projects.

The Ukrainian Startup Fund plans to buy shares in newly established companies.

The government wants to support aspiring entrepreneurs who have ideas for creating technology startups and are seeking funding to launch a test business model.

Priority is given to IT companies focused on exporting their products.

What can the money be spent on?

The annual budget of the government program is 10 billion UAH.

Aspiring entrepreneurs can use government-allocated funds exclusively for:

• hiring employees;
• preparation of a startup model;
• initial funding of the project.

Training program for IT specialists

The government has planned to implement another program to finance IT specialists.

At least 60,000 people who want to master an IT profession and who manage to find employment in their specialty after training will be able to receive state support.

Ukrainians will be able to receive a grant for training in the following areas:

• Junior Developer;
• graphic designer;
• other technical specialty.

The Prime Minister believes that state grants can become a real stimulus for growth in the domestic economy.

"This is motivation for people to stay and work in Ukraine. To work for our victory now, as well as for the development of a strong Ukraine in the future."— Shmigal notes.

European support for Ukrainian IT startups

The European Commission has announced its plans to support the Ukrainian innovation community. It plans to provide grants of up to €60,000.

The initiative's budget within the European Innovation Council (EIC) programme for 2022 is €20 million.

The funding will be awarded through a call for proposals to a pan-European network of start-up associations supporting interested business projects working in the field of innovation.

Who can get this money?

• Tech companies (startups and SMEs) that remained in Ukraine and operate here
• Businesses forced to relocate to EU countries during the war

In addition to financial support, it is planned to provide business consultations and assistance in finding European partners.

Opportunity to obtain additional funding 

According to Margrethe Vestager, Executive Vice President of the Europe Fit for the Digital Age program, European innovation associations should support the Ukrainian deep tech community "to make it stronger, more resilient, and more competitive."

With this support, Ukrainian startups will be prepared to compete for future funding opportunities from the European Innovation Council.

It is known that the EIC can support start-ups with up to €17.5 million through grants and equity investments.

In addition, it is possible to attract further private investment, three times the amount provided by public funds.

Benefits of European integration for Ukrainian companies

The European Commission recognizes Ukraine's great potential for innovative business.

The organization's official statement states that Ukrainian technological innovators should be given the opportunity to develop and integrate into the European ecosystem.

This will facilitate the entry of promising start-ups into new markets and allow them to take advantage of European financing instruments for small and medium-sized businesses.

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