Which is the largest Startup in the world now? None other than.. Ukraine.

If you look at the last two years of the Ukraine war carefully, you will see startling similarity with a startup where Ukraine being the start up and Zelenskyy being it’s CEO. Let me explain to you the nature of startups and the similarities with Ukraine.

1. Problem solving: Now startups usually take unconventional ways to solve a problem. Ukraine’s problem was the ethnic Russians in the East and the South and Russia’s influence in those regions. To solve the problem it wanted to join NATO that triggered Russia’s intervention. Ukraine had the opportunity to solve the problem through negotiations, instead it has chosen war to solve the problem.
2. Fund raising: The key nature of startup is to raise money. Zelenskyy raised hundreds of billions of dollars from around the world for the war campaign.
3. Growth orientation: Startups are growth oriented, looking to scale their business quickly to capture market share and attract investors. The more growth can be achieved, the more funding in next round. The successes in last year enabled Ukraine to attract investors and raise more fund for the war. As soon as counteroffensive failed this year, it has become more difficult to raise fund. Just like a startup.
4. Huge spending: Startups usually spends a lot for growth and success stories. Ukraine did the same, it had high spending rate in terms of resources including human resources and marketing campaigns.
5. Innovativeness: Startups usually are innovative to solve the problem despite of limitations. For a large adversary like Russia, Ukraine found out innovative ways to fight such as usage of drones and starlink despite their limitation of air superiority. They are not afraid to disrupt existing norms kind of like startups.
6. Risk taking: Startups tend to take significant risk to achieve their goals, understanding that high risk can lead to high reward. Ukraine didn’t hesitate to take risks despite knowing that adversary is a nuclear power, they did strike deep inside Russia.
7. Agility and adaptability: Startups are usually agile, and able to pivot quickly to change in environment or market demand. Ukraine quickly adapted to electronic warfare or think about storm shadow missile adaption in 80’s Mig 29.
8. Customer focus: Startups are usually customer focused and try to meet their customer needs. Sadly the customers for Ukraine has become the West instead of it’s own population. In any case, Ukraine has been customer focused all the time.

I tweeted “This is the beginning of the end of the war” when Zelensky went to USA for further support. Like a startup when you are unable to show progress, investors lose confidence in you and it becomes difficult to raise fund in next round. Precisely what happened with Ukraine, despite billions of dollars of investments from investors, despite sacrificing significant resources, Ukraine failed to achieve it’s stated objectives in it’s counter offensive.

Now what will happen to Ukraine? similar to any startup. They will try their best to show results with their limited resources in innovative way and attract more investments. If they can’t, may be someone will take a fall for it, there will be change of management and new initiatives If resources run out, startups wind down, sell their assets or make compromises. Same will happen to Ukraine. When your investor’s think your project is un-winnable, they will shy away from you. So what will happen to investors? nothing, they will move on to their next project like venture capitalists do.

I know the war is bigger than this. You can read more about that in my article last year on who will win this war. But I find this one an interesting perspective, what do you think?

Reach me at tashfin@kotha.app or tashfind at X.