– Let’s start with the big picture: what’s happening in the startup market right now? Are things bad, or are we still hanging in there?

The biggest shift is in how people perceive what a startup product even is. A few years ago, teams would throw together a prototype — often rough, half-baked, just an interface — and immediately head out pitching to investors. Now, it’s the exact opposite: people are terrified of launching anything unfinished. They try to polish the product into perfection before even saying “hello” to a potential investor.

Sounds like a maturing market, right? Not quite. What we’re seeing is that teams burn all their energy on “perfecting” things and completely forget about marketing, retention, and sales. And then they’re surprised when nobody wants the product — no matter how perfect it looks. That’s why we’re seeing more startup closures than ever before.

A few years ago, investors backed ideas and prototypes. Now, companies launch solid, polished products that… no one needs. That’s the biggest issue in today’s market.

– So, what sectors are booming right now, and which ones are fading into oblivion?

Military tech is definitely on the rise. With ongoing conflicts and global instability, it’s the star of the moment. But honestly, a lot of the products in this space look more like fluff than real innovation — and this is a field where fluff just isn’t acceptable. We're talking about solutions that can literally save lives.

MedTech is still relevant — anything health-related, diagnostic, or life-saving is in demand. But it feels like the pace has slowed. In 2021–2022, biotech was booming. Now, it’s gone quieter. Companies are either more cautious or just don’t broadcast their work as loudly. But the development continues — often with a military crossover.

Fintech? Always in fashion. Money always finds its place in the market. Fintech will stay strong because financial operations are essential.

Now, AR/VR… well, that’s a different story. What used to be seen as the next revolution is now slowly disappearing. Even the big players are shutting down their AR/VR divisions. It’s one of those technologies that didn’t quite live up to the hype. Maybe that’s a good thing.

– How are today’s startups different from those we saw five years ago?

Today’s founders are hyper-focused on the product — but they often forget the rest of the equation: sales, marketing, customer feedback. We’ve returned to the “engineer-first” startup era. Previously, we moved from techies to marketers and sales-driven founders. Now we’re swinging back.

That brings better products — sure. But it also means that many great products are launched… and then just disappear in silence because no one ever heard about them.

– Why do you believe investment in startups is declining? What are the signs?

It’s a natural reaction to an overheated market. We’ve just exited a near-recession, with printed money flooding the economy during COVID. All that cash needed a home — and it ended up in startups.

For a while, the startup economy was built on drawing pretty growth charts, inflating valuations, showing “traction.” But in reality, there was often little substance behind those numbers.

And now we’re seeing the blowback. Investors are scaling down. Round sizes have dropped significantly. A few years ago, startups could raise $500K–$1M on day one. Now you’re lucky to get $100K–$250K — and even that requires strong proof points.

– How are investor behaviors changing?

They’re getting pickier. Angel investors expect more for less. Venture funds aren’t committing to full follow-on rounds like they used to. Accelerators used to offer large seed packages up front. Now they give small checks, and only top up if the company proves itself.

It’s no longer “here’s a pile of cash — good luck!” It’s “show me what you’ve got — then we’ll talk.”

– Would you say there’s a trust crisis between investors and startups?

Absolutely. Startups are afraid of investors, not sure how to meet expectations. Investors are afraid of startups because too many have failed to deliver. It’s a classic vicious cycle.
Startups over-engineer the product, ignore the market, and launch into silence. Or they release a half-baked MVP and get rejected by investors. Either way — no one’s winning.
This cycle needs to be broken. Until that happens, progress will stay slow.

– What about the end of U.S. aid programs? How does that affect the startup ecosystem, especially in Ukraine?

It already does. Aid programs were the lifeline for many ambitious but fragile projects — in the U.S. and abroad. Ukrainian startups and support funds relied on that pipeline.
Now that the faucet’s been turned off, we’re seeing natural selection kick in. Some companies will survive — those that have solid business models and real market traction. Others will disappear.

We’ll see a spike in shutdowns. If one in three startups used to fail, it might soon be one in two — or more. Only those that know how to sell, market, and operate lean will make it through.

– Can startups find alternative sources of funding in this new reality?

I think we’ll see a renaissance of crowdfunding — especially in military-adjacent sectors. Ukraine has already shown how powerful public support can be. Donations, volunteer funding, small-scale sponsorships — that’s where many early-stage projects will find oxygen.

But here’s the catch: you still need to build trust. If not with users, then with the crowd. Those who learn to do that — will survive.


– Let’s talk mistakes. What are the most common startup errors you see in early stages?

The biggest one? Blind belief in the product. Founders fall in love with their idea and forget that startups are about testing hypotheses — fast.

You need to build, test, adapt. Not polish one idea for two years while waiting for a miracle. I’ve seen teams refuse to change course even when they’ve had zero traction for months.

Another mistake is overestimating design. A functional but ugly product can still win hearts. But a beautiful, slick interface without real value? That’s a dead end.

– If you could give startups one piece of advice for 2025 — what would it be?

Be flexible. Learn to pivot fast. If needed — cut headcount, reduce costs, stay lean. But when opportunity comes — scale up just as fast.

Hire slowly, fire quickly. Test often. Don’t get attached to one model. You should be testing 10–15 hypotheses in a short cycle — not just clinging to one plan forever.
That’s how you survive in 2025.