Why These Ukrainian Entrepreneurs Are Making LA Their Home

Aisha Counts
Aisha Counts is a business reporter covering the technology industry. She has written extensively about tech giants, emerging technologies, startups and venture capital. Before becoming a journalist she spent several years as a management consultant at Ernst & Young.
Why These Ukrainian Entrepreneurs Are Making LA Their Home
Joey Mota

Fleeing war and chasing new opportunities, more than a dozen Ukrainian entrepreneurs have landed in Los Angeles, finding an unexpected community in the city of dreams. These entrepreneurs have started companies that are collectively worth more than $300 million, in industries ranging from electric vehicle charging stations to audience monetization platforms to social networks.

Dot.LA spent an evening with this group of Ukrainian citizens, learning what it was like to build startups in Ukraine, to cope with the unimaginable fear of fleeing war, and to garner the resilience to rebuild.


Andrew Skrypnyk, CEO of learning platform Promova, decided to enter tech after being awed by 3D graphics on a computer. He went on to spend time in a variety of software development roles, learning more than 20 programming languages in the process. Artem Kudymovskyy, co-founder and CCO of software development firm ITRex Group, similarly became inspired when he saw his first personal computer and met a former programmer who taught him to code.

Others took more winding paths. Vlad Klimchuk studied biomedical engineering and then became one of Ukraine’s highest-grossing filmmaker before switching into tech and co-founding image-based social network TLPRT. Dana Sydorenko spent time as a military paramedic and created Ukraine’s best army supply company before co-founding GameTree with John Uke.

Despite taking different paths, what these founders share is a passion and ingenuity for solving their own problems and developing creative solutions.

For instance, when Oleksiy Malytskyy first moved to Los Angeles, had a difficult time finding an apartment which led him to co-found co-living startup Sota. When Alexey Menshikov, a former sound designer, became frustrated that the gaming company he worked for wouldn’t accept his ideas, he decided to start Beatshapers, his own company in immersive gaming.

Alexey Menshikov -Beatshapers, Oleksandr Gamaniuk -tarta.aiJoey Mota

The sense of resilience and adaptability these entrepreneurs share is exactly what investors look for in startup founders.

β€œStartup life is really hard. And it's a grind to go from a zero to a one and to have something that's just a concept, or an idea and bootstrap that and build it and get to a place where you're actually making money,” said Brandon Gerson, a former entrepreneur turned venture partner at Expert Dojo and angel investor in Primeclass.

Starting a tech company isn’t easy being with, but in Ukraine it’s especially hard. Ukraine’s challenging history includes the collapse of the Soviet Union in 1991, the Russian invasion of Crimea in 2014, numerous financial crises, and of course the recent Russian invasion of Ukraine amongst other events.

Each of these events caused the economy to sink, businesses to collapse and access to capital to dry up. Over the years Ukraine’s annual GDP has swung wildly as result, from highs of 10%+ annual GDP growth to lows of -20% growth. Ukrainian founders not only face the normal challenges of managing a startup, but have the added pressures of navigating rapidly shifting economic conditions.

The limited number of venture capital firms in the country also means access to capital is hard to come by, and thus harder to scale.

This wasn’t always the case: Ukraine was broadly known for having a thriving tech scene before the war. Between 2015 and 2016 for instance, investors pumped more than $200 million into startups and Ukraine’s IT outsourcing sector was worth billions.

Pavlo Shlapak - Phygit, Alexey Menshikov -Beatshapers, Vlad Klimchuk-TLPRT Pavlo Shlapak - Phygit, Alexey Menshikov -Beatshapers, Vlad Klimchuk TLPRT Joey Mota

But as Sydorenko, the paramedic turned GameTree co-founder, put it, β€œat some point Ukraine has limits.” Not only is it difficult to raise money in Ukraine, but β€œyou will never be able to build a publicly traded company over there because this market does not exist,” she said.

Although Sydorenko and her team were able to build a social network in Ukraine that now has over 500,000 users, fundraising was difficult. It wasn’t until moving to Los Angeles that they were able to raise a significant amount of money: $650,000 in their most recent round.

By virtue of being from Ukraine then, these entrepreneurs naturally have resilience and adaptability in spades. β€œSomeone who comes from Ukraine and having gone through what those folks have gone through, I don't even mean just in the war, just in history, they're prepared in a way that most of the folks are not,” said Brian MacMahon, whose accelerator Expert Dojo has invested in more than 200 startups across Africa, Latin America, and India among other regions.

Now the Russia-Ukraine war has threatened to dismantle the country’s tech industry as infrastructure is destroyed, internet access and electricity are cut off, and tech companies and their workers flee.

Even still, Ukrainian tech workers are carrying on in astounding fashion.

One Ukranian man, who was locked in his dimly lit basement for weeks, carried on programming and coding even while bombs were going off overhead, said Kudymovskyy, as an illustration of Ukrainian resolve.

By some estimates nearly 90 to 95% of all startups fail, but in the experience of Pavlo Shlapak, founder of Phygit, which creates digital experiences for physical products, the survival rate for Ukrainian startups is significantly higher. β€œAnd that's because we can adapt, we have a positive mind, great sense of humor, and it's a super valuable source actually in crisis situations,” he said.

For Ukrainian founders then, relocating and building a startup in sunny Los Angeles, is almost easy by comparison. Access to capital is plentiful, networking opportunities abound and the Los Angeles tech community is thriving.

Despite being separated by more than six thousand miles across the Atlantic Ocean, several Ukrainians saw parallels between Odessa, Ukraine and Los Angeles for example.

β€œOdessa is the most diverse city in Ukraine,” said Primeclass founder Ivan Kovpak, who noted the connection between his hometown and Los Angeles. Kovpak, Skrypnyk and Kudymovskyy agreed that both cities possess comparable climates, proximity to water and similar levels of openness and diversity.

Ivan Kovpak, Primeclass founderJoey Mota

β€œIn California, everybody kind of likes Silicon Valley, but there's something very special about this place,” said Kudymovskyy, a former consultant who moved to Los Angeles in 2012 before starting his own firm ITRex Group. Kudymovskyy also said that diversity and access to different ideas can actually make startups more successful.

The culture of creativity and storytelling was one of the main appeals of relocating to Los Angeles, according to several founders. More than one joked that Ukrainians are not the best salesmen or marketing gurus. But living in the filmmaking and content creation capital of the world, they now had the perfect combination of storytelling and tech.

The combination of a U.S. founder with sales experience and β€œa founder from Ukraine who will develop a product is the killer combination,” said Malytskyy, co-founder of Sota.

Other founders agreed. β€œI think the combination of Ukraine and LA is our key of success,” said Sydorenko. β€œIf you take almost any company, you have developers in Ukraine, you test your product in Ukraine, and you have people who create networking and promote your product in LA, any sort of company will be successful,” she said.

Although it may seem more obvious to build a startup in Silicon Valley rather than Los Angeles, several founders thought otherwise.

β€œIt makes perfect sense that if you want to build a startup, you think that San Francisco is the spot,” Sydorenko added. β€œBut actually it's the worst place to build because the cost per developer is extremely high [and] you need to compete with the biggest companies in the market,” she said.

Omar Zhandarbekuly, Yevgen Arutyunyan - AEV charging, Oleksyy Malytskyy - Go SotaJoey Mota

Plus as more Silicon Valley investors open offices in the city and startups relocate their headquarters, Los Angeles is quickly becoming a new tech capital in its own right, said Menshikov.

In many ways Los Angeles was the perfect landing spot for this group of entrepreneurs. But as the Russia-Ukraine war rages on, many of the founders can’t help but feel the tug of home.

They each grappled with the dual responsibility and tension of building successful startups in the U.S., while still supporting their country and taking care of friends, family and employees back home.

Founders often find themselves helping colleagues find shelter and safe places to work back in Ukraine or working to relocate family members. At times this can mean ceasing startup operations to assist with the war.

β€œEvery Ukrainian is in one way or the other contributing to the war,” whether they are on the front lines or not, said Malytskyy, who organized a resistance group inside of Russia at the start of the war.

For the founders, this often means using money as a form of resistance.

β€œWe also fight on the economical front,” said Skrypnyk. In his mind they are financial soldiers, helping to wage war by beefing up the Ukrainian economy, sending monetary support to the military and propping up families and businesses.

Although these founders have physically left Ukraine, they brought with them their country’s sense of resilience, humor, purpose and passion. For now, Los Angeles is home, but the spirit of Ukraine lives on.

🀫 The Secret to Staying Fit at Your Desk: 6 Essential Under-Desk Exercise Machines

Health experts are sounding the alarm: our sedentary jobs are slowly killing us, yet we can't abandon our desks if we want to keep the lights on. It feels like we're caught between a rock and a hard place. Enter under-desk exercise machines – the overlooked heroes (albeit kind of goofy looking) of the modern workspace. These devices let tech professionals stay active, enhance their health, and increase their productivity, all without stepping away from their screens. Here are 6 fantastic options that will enhance the way you work and workout simultaneously.

DeskCycle Under Desk Bike Pedal Exerciser

This bike has nearly ten thousand five-star reviews on amazon. It works with nearly any desk/chair setup. It is quiet, sturdy and allows up to 40 pounds of resistance. If you are looking for an under-desk bike this is a fantastic option.

Type: Under-Desk Bike

Price: $180 - $200


Sunny Health & Fitness Dual Function Under Desk Pedal Exerciser

This under-desk bike is extremely quiet due to the magnetic resistance making it an ideal option if you work in a shared space. It doesn’t slip, has eight levels of resistance, and the option to work legs and arms. It’s about half the price of the DeskCycle bike making it a solid mid-range option for those looking to increase their daily activity.

Type: Under-Desk Bike

Price: $100 - $110


Sunny Health & Fitness Sitting Under Desk Elliptical

This under-desk elliptical comes in multiple colors if you really want to underscore that you are a quirky individual, in case an under-desk elliptical isn’t enough. This model is a bit heavy (very sturdy), has eight different resistance levels, and has more than nine thousand 5-star reviews.

Type: Under-Desk Elliptical

Price: $120 - $230


DeskCycle Ellipse Leg Exerciser

This under-desk elliptical is another great option. It is a bit pricey but it’s quiet, well-made and has eight resistance levels. It also syncs with your apple watch or fitbit which is a very large perk for those office-wide β€œstep” challenges. Get ready to win.

Type: Under-Desk Elliptical

Price: $220 - $230


Daeyegim Quiet LED Remote Treadmill

If you have a standing desk and are looking to walk and work this is a fantastic option. This walking-only treadmill allows you to walk between 0.5 to 5 mph (or jog unless you have the stride length of an NBA forward). It is very quiet, which is perfect if you want to use it near others or during a meeting. You can’t change the incline or fold it in half but it is great for simply getting in some extra steps during the work day.

Type: Under-Desk Treadmill

Price: $220 - $230


Sunny Health & Fitness Foldable Manual Treadmill

This under-desk treadmill isn’t the most premium model but it is affordable and has an impressive array of features. It is a manual treadmill meaning it doesn’t need to be plugged in; it is foldable and offers an incline up to 13%. I personally can’t imagine working and walking up a 13% incline but if that sounds like your cup of tea, then I truly respect the hustle.

Type: Under-Desk Treadmill

Price: $150 - $200




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🀠Musk Picks Texas and πŸ”₯Tinder AI Picks Your Profile Pictures

πŸ”¦ Spotlight

Tinder is altering dating profile creation with its new AI-powered Photo Selector feature, designed to help users choose their most appealing dating profile pictures. This innovative tool employs facial recognition technology to curate a set of up to 10 photos from the user's device, streamlining the often time-consuming process of profile setup. To use the feature, users simply take a selfie within the Tinder app and grant access to their camera roll. The AI then analyzes the photos based on factors like lighting and composition, drawing from Tinder's research on what makes an effective profile picture.

The selection process occurs entirely on the user's device, ensuring privacy and data security. Tinder doesn't collect or store any biometric data or photos beyond those chosen for the profile, and the facial recognition data is deleted once the user exits the feature. This new tool addresses a common pain point for users, as Tinder's research shows that young singles typically spend about 25 to 33 minutes selecting a profile picture. By automating this process, Tinder aims to reduce profile creation time and allow users to focus more on making meaningful connections.

In wholly unrelated news, Elon Musk has announced plans to relocate the headquarters of X (formerly Twitter) and SpaceX from California to Texas. SpaceX will move from Hawthorne to Starbase, while X will shift from San Francisco to Austin. Musk cited concerns about aggressive drug users near X's current headquarters and a new California law regarding gender identity notification in schools as reasons for the move. This decision follows Musk's previous relocation of Tesla's headquarters to Texas in 2021.

🀝 Venture Deals

LA Companies

LA Venture Funds

LA Exits

  • Penguin Random House agreed to acquire comic book publisher Boom! Studios from backers like Walt Disney Co. - learn more

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Top LA Accelerators that Entrepreneurs Should Know About

Los Angeles, has a thriving startup ecosystem with numerous accelerators, incubators, and programs designed to support and nurture new businesses. These programs provide a range of services, including funding, mentorship, workspace, networking opportunities, and strategic guidance to help entrepreneurs develop their ideas and scale their companies.


Techstars Los Angeles

Techstars is a global outfit with a chapter in Los Angeles that opened in 2017. It prioritizes local companies but will fund some firms based outside of LA.

Location: Culver City

Type of Funding: Pre-seed, early stage

Focus: Industry Agnostic

Notable Past Companies: StokedPlastic, Zeno Power


Grid110

Grid110 offers no-cost, no-equity programs for entrepreneurs in Los Angeles, including a 12-week Residency accelerator for early-stage startups, an Idea to Launch Bootcamp for pre-launch entrepreneurs, and specialized programs like the PledgeLA Founders Fund and Friends & Family program, all aimed at providing essential skills, resources, and support to help founders develop and grow their businesses.

Location: DTLA

Type of Funding: Seed, early stage

Focus: Industry Agnostic

Notable Past Companies: Casetify, Flavors From Afar


Idealab

Idealab is a renowned startup studio and incubator based in Pasadena, California. Founded in 1996 by entrepreneur Bill Gross, Idealab has a long history of nurturing innovative technology companies, with over 150 startups launched and 45 successful IPOs and acquisitions, including notable successes like Coinbase and Tenor.

Location: Pasadena

Type of Funding: Stage agnostic

Focus: Industry Agnostic, AI/Robotics, Consumer, Clean Energy

Notable Past Companies: Lumin, Coinbase, Tenor


Plug In South LA

Plug In South LA is a tech accelerator program focused on supporting and empowering Black and Latinx entrepreneurs in the Los Angeles area. The 12-week intensive program provides early-stage founders with mentorship, workshops, strategic guidance, potential pilot partnerships, grant funding, and networking opportunities to help them scale their businesses and secure investment.

Location: Los Angeles

Type of Funding: Pre-seed, seed

Focus: Industry Agnostic, Connection to South LA and related communities

Notable Past Companies: ChargerHelp, Peadbo


Cedars-Sinai Accelerator

The Cedars-Sinai Accelerator is a three-month program based in Los Angeles that provides healthcare startups with $100,000 in funding, mentorship from over 300 leading clinicians and executives, and access to Cedars-Sinai's clinical expertise and resources. The program aims to transform healthcare quality, efficiency, and care delivery by helping entrepreneurs bring their innovative technology products to market, offering participants dedicated office space, exposure to a broad network of healthcare entrepreneurs and investors, and the opportunity to pitch their companies at a Demo Day.

Location: West Hollywood

Type of Funding: Seed, early stage, convertible note

Focus: Healthcare, Device, Life Sciences

Notable Past Companies: Regard, Hawthorne Effect


MedTech Innovator

MedTech Innovator is the world's largest accelerator for medical technology companies, based in Los Angeles, offering a four-month program that provides selected startups with unparalleled access to industry leaders, investors, and resources without taking equity. The accelerator culminates in showcase events and competitions where participating companies can win substantial non-dilutive funding, with the program having a strong track record of helping startups secure FDA approvals and significant follow-on funding.

Location: Westwood

Type of Funding: Seed, early stage

Focus: Health Care, Health Diagnostics, Medical Device

Notable Past Companies: Zeto, Genetesis


KidsX

The KidsX Accelerator in Los Angeles is a 10-week program that supports early-stage digital health companies focused on pediatric care, providing mentorship, resources, and access to a network of children's hospitals to help startups validate product-market fit and scale their solutions. The accelerator uses a reverse pitch model, where participating hospitals identify focus areas and work closely with selected startups to develop and pilot digital health solutions that address specific pediatric needs.

Location: East Hollywood

Type of Funding: Pre-seed, seed, early stage

Focus: Pediatric Health Care Innovation

Notable Past Companies: Smileyscope, Zocalo Health


Disney Accelerator

Disney Accelerator is a startup accelerator that provides early-stage companies in the consumer media, entertainment and technology sectors with mentorship, guidance, and investment from Disney executives. The program, now in its 10th year, aims to foster collaborations and partnerships between innovative technology companies and The Walt Disney Company to help them accelerate their growth and bring new experiences to Disney audiences.

Location: Burbank

Type of Funding: Growth stage

Focus: Technology and entertainment

Notable Past Companies: Epic Games, BRIT + CO, CAMP


Techstars Space Accelerator

Techstars Space Accelerator is a startup accelerator program focused on advancing the next generation of space technology companies. The three-month mentorship-driven program brings together founders from across the globe to work on big ideas in aerospace, including rapid launch services, precision-based imaging, operating systems for complex robotics, in-space servicing, and thermal protection.

Location: Los Angeles

Type of Funding: Growth stage

Focus: Aerospace

Notable Past Companies: Pixxel, Morpheus Space



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