In February 2022, Ukraine’s tech sector was thriving. According to the IT Association of Ukraine, the country’s IT exports had tripled to nearly $7 billion per year between 2016 and 2021. Ukraine’s universities have been known for producing talented STEM graduates, many of whom contributed to the growth of the country’s tech industry. Initially, Ukraine became Europe’s back office, providing developers and designers for international clients. Eventually, it evolved into an innovation center with a wide range of cutting-edge startups, spanning deep-tech, robotics, translation, and AI.
However, the war threatened to disrupt this progress. Russia’s invasion resulted in the loss of numerous civilian and military lives, forcing millions of people to flee their homes and scatter across Europe and beyond. The invasion also targeted infrastructure, jeopardizing the ability of Ukrainian businesses to maintain connections with their customers and supporters overseas.
Despite these challenges, the tech sector not only survived but flourished. By the end of 2022, Ukraine’s IT exports had grown by almost 7 percent, even as the overall economy shrank by nearly a third. The following stories highlight the resilience, defiance, courage, and collaboration seen in Ukraine’s tech sector. Although they represent only a fraction of the countless acts of resilience displayed by Ukrainian startups, they exemplify the sector’s remarkable spirit in the face of adversity.
“Music is a very powerful instrument.”
Andriy Dakhovskyy, a PhD student in quantum physics during the final days of the Soviet Union, used to hide bootlegged western rock vinyl records in his room. He managed to evade the KGB and capitalized on his love for rock music, eventually establishing Universal Music’s first office in Kyiv and playing a pivotal role in the development of Ukraine’s music industry after the collapse of the Soviet Union. Dakhovskyy’s involvement in the industry included bringing Elton John to Ukrainian TV and producing Kyiv’s inaugural rock opera. During our drive through central Kyiv, he points out a nightclub he ended up managing by chance, after a friend convinced him to invest in it. Unfortunately, it closed down due to the impact of Covid and subsequently the war.
In 2020, Dakhovskyy partnered with business associates in Ukraine and the US to launch Djooky. The platform aimed to address the disparity on music streaming platforms like Spotify, where only a select few high-profile artists earn significant income, leaving lesser-known artists, particularly those from outside the US, at a disadvantage. Dakhovskyy acknowledges the heavy monopolization and centralization of the music industry, stating that he was unable to effect change from within.
Djooky serves as a marketplace where fans can essentially invest in artists by purchasing shares, thereby helping them gain visibility and potentially profiting from their success. When the Eurovision Song Contest was canceled due to the pandemic in 2020, Djooky organized its own Djooky Music Awards, a massive multinational competition that allowed fans from around the world to vote for their favorite songs. The platform currently boasts 200,000 registered users, submissions from artists in over 140 countries, and has successfully held 15 auctions.