Featured Article

How the tech industry is responding to Russia’s invasion of Ukraine

Comment

Image Credits: Daniel Leal (opens in a new window) / Getty Images

On February 24, Russia launched an invasion of neighboring Ukraine after months of a military build-up on its borders.

The attack began with cyberattacks that targeted Ukrainian government departments with floods of internet traffic and data-wiping malware, followed by a ground, sea and air incursion. News outlets in Ukraine are also reporting outages caused by cyberattacks, which the Ukrainian government says it has “unambiguously linked” to Moscow.

The invasion was met with sharp rebuke from the United States, the European Union and NATO allies, with broad, unprecedented financial and diplomatic sanctions promised against Russia, sanctions that are likely to affect business, trade and finance across the region.

The impacts of the invasion are also, undoubtedly, being felt across Ukraine’s wider tech ecosystem, which includes not only hundreds of startups and larger tech firms, but also research and development offices for some of the world’s biggest technology brands.

As the situation on the ground changes rapidly over the next few hours and days, TechCrunch will continue to bring news and analysis on how the conflict unfolds across the tech and startup community.

GET IN TOUCH

To get in touch or pass along information, email us at tips@techcrunch.com or use our tips page if you want to contact us anonymously.

A director at one major tech company, who asked us to not name the company for the safety of its employees, confirmed to us that it is in the process of working out how to evacuate all of its staff in Ukraine. The situation is being hampered by the fact that all airspace is now out of bounds, and public transportation is largely out of action. The current plan is to figure out how to get staff across the border either to Hungary or Poland.

The situation is also going to spell major economic fallout for startups in Ukraine.

Readdle, the company that makes PDF, email and other productivity tools, is one of the better known bootstrapped startups out of Ukraine. Based out of the southern city of Odessa, the company’s main spokesperson and managing director, Denys Zhadanov, canceled a phone interview for this story, saying that there were too many emergencies that needed to be handled at the moment. He did, however, speak with TechCrunch by text message.

“We’ve made business continuity plans a while ago and [are] executing them now,” he said. “All Readdle products and services at Readdle are up and running, and there’s no evacuation for the team [being undertaken] at this point.”

Zhadanov noted that Readdle has grown into an international company, with people employed in 11 countries. A “big chunk” of the team, he said, is still based in Ukraine.

“Ukraine is home to the finest engineers, designers, and other tech professionals,” he added. “I know that many tech CEOs have made a conscious decision to stay in Ukraine. Many of them are helping and donating to help the county and its people.”

In Ukraine, there are many more home-grown startups that are also feeling the fallout (and bear supporting if you’re so inclined). They include Ajax, a home wireless security company; the AI-based grammar and writing engine Grammarly; the face-swapping app Reface; pet camera system Petcube; People AI, the sales and marketing intelligence startup; and language tutor marketplace Preply. These companies have raised funding from some of the world’s biggest VCs and one question will be how and if those relationships will be impacted with the latest developments.

Software house MacPaw, which develops Mac software and utilities, said in a blog post that while its headquarters is in Kyiv, its infrastructure is hosted on Amazon Web Services and physically located outside of Ukraine. Its payments processor, Paddle, is based in the U.K., and anticipates that “nothing is going to change” for its users. “At this moment, we’re staying strong, united, and ready to defend the sovereignty and territorial integrity of Ukraine,” said MacPaw in an email to TechCrunch.

One company with a presence in Ukraine declined to talk on the record to TechCrunch, citing the rapidly changing situation on the ground.

In addition to startups, there are larger tech companies that have both R&D operations out of the country as well as teams providing more localized services, ranging from content to ad sales.

For those with consumer-facing platforms like Google’s YouTube or ByteDance’s TikTok, the question will be how they are being used — or misused — with disinformation, or conversely censorship, and how the companies are handling that kind of traffic. On top of that is the question of services overall, how they are staying up and whether they are running the risk of getting shut down due to sanctions or interruptions of internet service. We’ve reached out to Amazon, Apple, ByteDance, Facebook, Google, Meta and Snap for comment and will update this as and when we learn more. When reached, Microsoft declined to comment.

A few other points to note for now:

Google, by the looks of it, has around 200 people working in the country, covering both R&D for global services and localized operations. It has faced a number of issues over the years with censorship around YouTube in Russia, although that, so far, has not had an analogue in Ukraine.

Uber, which has operated in Ukraine since 2016 and is present in nine cities, paused operations within the country. Uber offered Kyiv-based employees and their immediate families temporary and voluntary relocation to other parts of Ukraine or other countries. For gig-working drivers and the riders they serve, Uber advice is to stay home. 

“Our focus continues to be doing whatever we can to protect the safety of Uber riders, drivers and employees. We have a cross-functional team monitoring the situation very closely and will restore service as soon as it is safe to do so,” Uber told TechCrunch.

Lyft has also taken precautions for its Ukraine-based employees.

“Our priority is the safety and wellbeing of our team members in Ukraine. We’re providing financial support for emergency preparedness and for those who wish to temporarily relocate, increased time off and additional mental health resources. We’re closely monitoring the situation and will continue to evaluate our response as necessary,” Ashley Adams, a Lyft spokesperson, told TechCrunch. Per Reuters, Lyft is estimated to have around 60 employees in Ukraine and wrote in a December blog post that it had plans to expand its Kyiv office, which opened in April. Beyond the engineering office, though, Lyft doesn’t operate rideshare services in the country.

TikTok and its parent ByteDance typically do not disclose how many employees it has by country, and so it’s unclear how many they have in Ukraine. But they do have a very popular app — which last year was estimated to have a reach of 30% in the country, doubling over the previous year. TechCrunch chronicled last year how it emerged as a key battleground around Navalny-fueled, anti-Putin activism.

“The safety of our community and our employees is our top priority,” a spokesperson from TikTok said in a statement provided to TechCrunch. “We take action on content or behavior that threatens the safety of our platform, including removing content that contains harmful misinformation, and will continue to monitor and dedicate resources to the situation as it evolves.”

Facebook head of security policy Nathaniel Gleicher tweeted about the actions the platform will take in response to the Russian invasion of Ukraine. Gleicher said that Facebook established a Special Operations Center with native speakers to “closely monitor the situation and act as fast as possible.” The platform also deployed a feature in Ukraine that allows users to lock their account, meaning that those who are not a user’s friend cannot download or share their profile picture, or see posts on their timeline. This is the same strategy that Facebook used in August to try to protect users in Afghanistan. Meta also temporarily removed the ability to view and search the “Friends” list for users in Afghanistan and rolled out pop-up alerts for on Instagram with instructions about protecting their accounts. So far, those two measures haven’t been adopted for accounts in Ukraine.

Twitter is warning users in Ukraine to protect their online accounts, such as using multi-factor authentication and disabling location in tweets. It’s a sharp turnaround from 24 hours earlier, when Twitter confirmed it mistakenly suspended accounts that are sharing details about Russia’s military activities prior to the invasion.

And, internet giant Cloudflare chief executive Matthew Prince said the company had “removed all Cloudflare customer cryptographic material from servers in Ukraine,” hours after the invasion began, as part of an effort to protect customer data and communications in the event that the data center is compromised. Cloudflare opened its Kyiv data center in 2016, which remains operational according to the company’s status pages. Cloudflare provides content delivery and network security to organizations and governments.

Updated with remarks from Facebook, TikTok, Uber, and Lyft. 

VCs weigh in on Europe’s future in the critical deep tech market

How the conflict in Ukraine threatens US cybersecurity

More TechCrunch

When it comes to the world of venture-backed startups, some issues are universal, and some are very dependent on where the startups and its backers are located. It’s something we…

The ups and downs of investing in Europe, with VCs Saul Klein and Raluca Ragab

Welcome back to TechCrunch’s Week in Review — TechCrunch’s newsletter recapping the week’s biggest news. Want it in your inbox every Saturday? Sign up here. OpenAI announced this week that…

Scarlett Johansson brought receipts to the OpenAI controversy

Accurate weather forecasts are critical to industries like agriculture, and they’re also important to help prevent and mitigate harm from inclement weather events or natural disasters. But getting forecasts right…

Deal Dive: Can blockchain make weather forecasts better? WeatherXM thinks so

pcTattletale’s website was briefly defaced and contained links containing files from the spyware maker’s servers, before going offline.

Spyware app pcTattletale was hacked and its website defaced

Featured Article

Synapse, backed by a16z, has collapsed, and 10 million consumers could be hurt

Synapse’s bankruptcy shows just how treacherous things are for the often-interdependent fintech world when one key player hits trouble. 

18 hours ago
Synapse, backed by a16z, has collapsed, and 10 million consumers could be hurt

Sarah Myers West, profiled as part of TechCrunch’s Women in AI series, is managing director at the AI Now institute.

Women in AI: Sarah Myers West says we should ask, ‘Why build AI at all?’

Keeping up with an industry as fast-moving as AI is a tall order. So until an AI can do it for you, here’s a handy roundup of recent stories in the world…

This Week in AI: OpenAI and publishers are partners of convenience

Evan, a high school sophomore from Houston, was stuck on a calculus problem. He pulled up Answer AI on his iPhone, snapped a photo of the problem from his Advanced…

AI tutors are quietly changing how kids in the US study, and the leading apps are from China

Welcome to Startups Weekly — Haje‘s weekly recap of everything you can’t miss from the world of startups. Sign up here to get it in your inbox every Friday. Well,…

Startups Weekly: Drama at Techstars. Drama in AI. Drama everywhere.

Last year’s investor dreams of a strong 2024 IPO pipeline have faded, if not fully disappeared, as we approach the halfway point of the year. 2024 delivered four venture-backed tech…

From Plaid to Figma, here are the startups that are likely — or definitely — not having IPOs this year

Federal safety regulators have discovered nine more incidents that raise questions about the safety of Waymo’s self-driving vehicles operating in Phoenix and San Francisco.  The National Highway Traffic Safety Administration…

Feds add nine more incidents to Waymo robotaxi investigation

Terra One’s pitch deck has a few wins, but also a few misses. Here’s how to fix that.

Pitch Deck Teardown: Terra One’s $7.5M Seed deck

Chinasa T. Okolo researches AI policy and governance in the Global South.

Women in AI: Chinasa T. Okolo researches AI’s impact on the Global South

TechCrunch Disrupt takes place on October 28–30 in San Francisco. While the event is a few months away, the deadline to secure your early-bird tickets and save up to $800…

Disrupt 2024 early-bird tickets fly away next Friday

Another week, and another round of crazy cash injections and valuations emerged from the AI realm. DeepL, an AI language translation startup, raised $300 million on a $2 billion valuation;…

Big tech companies are plowing money into AI startups, which could help them dodge antitrust concerns

If raised, this new fund, the firm’s third, would be its largest to date.

Harlem Capital is raising a $150 million fund

About half a million patients have been notified so far, but the number of affected individuals is likely far higher.

US pharma giant Cencora says Americans’ health information stolen in data breach

Attention, tech enthusiasts and startup supporters! The final countdown is here: Today is the last day to cast your vote for the TechCrunch Disrupt 2024 Audience Choice program. Voting closes…

Last day to vote for TC Disrupt 2024 Audience Choice program

Featured Article

Signal’s Meredith Whittaker on the Telegram security clash and the ‘edge lords’ at OpenAI 

Among other things, Whittaker is concerned about the concentration of power in the five main social media platforms.

2 days ago
Signal’s Meredith Whittaker on the Telegram security clash and the ‘edge lords’ at OpenAI 

Lucid Motors is laying off about 400 employees, or roughly 6% of its workforce, as part of a restructuring ahead of the launch of its first electric SUV later this…

Lucid Motors slashes 400 jobs ahead of crucial SUV launch

Google is investing nearly $350 million in Flipkart, becoming the latest high-profile name to back the Walmart-owned Indian e-commerce startup. The Android-maker will also provide Flipkart with cloud offerings as…

Google invests $350 million in Indian e-commerce giant Flipkart

A Jio Financial unit plans to purchase customer premises equipment and telecom gear worth $4.32 billion from Reliance Retail.

Jio Financial unit to buy $4.32B of telecom gear from Reliance Retail

Foursquare, the location-focused outfit that in 2020 merged with Factual, another location-focused outfit, is joining the parade of companies to make cuts to one of its biggest cost centers –…

Foursquare just laid off 105 employees

“Running with scissors is a cardio exercise that can increase your heart rate and require concentration and focus,” says Google’s new AI search feature. “Some say it can also improve…

Using memes, social media users have become red teams for half-baked AI features

The European Space Agency selected two companies on Wednesday to advance designs of a cargo spacecraft that could establish the continent’s first sovereign access to space.  The two awardees, major…

ESA prepares for the post-ISS era, selects The Exploration Company, Thales Alenia to develop cargo spacecraft

Expressable is a platform that offers one-on-one virtual sessions with speech language pathologists.

Expressable brings speech therapy into the home

The French Secretary of State for the Digital Economy as of this year, Marina Ferrari, revealed this year’s laureates during VivaTech week in Paris. According to its promoters, this fifth…

The biggest French startups in 2024 according to the French government

Spotify is notifying customers who purchased its Car Thing product that the devices will stop working after December 9, 2024. The company discontinued the device back in July 2022, but…

Spotify to shut off Car Thing for good, leading users to demand refunds

Elon Musk’s X is preparing to make “likes” private on the social network, in a change that could potentially confuse users over the difference between something they’ve favorited and something…

X should bring back stars, not hide ‘likes’

The FCC has proposed a $6 million fine for the scammer who used voice-cloning tech to impersonate President Biden in a series of illegal robocalls during a New Hampshire primary…

$6M fine for robocaller who used AI to clone Biden’s voice