Russia's invasion of Ukraine has forced Bay Area startups to figure out what to do about their Ukrainian operations and workforces.
Three of the companies with a significant presence in the Eastern European country said they are relocating workers to safety outside of it. One of them, Just Answer LLC, is also paying the salaries of those who want to stay and fight for their country.
"We believe this is the best way to support their efforts and we're grateful to be able to help them fight for Ukraine," CEO Andy Kurtzig told the Business Journal via email.
Although Just Answer is based in San Francisco, 252 of its 700 employees are based in Ukraine, according to Kurtzig. The company, which has raised a total of $25.7 million from investors including Crosslink Capital and Glynn Capital, according to PitchBook, is already relocating some of its workers outside of the country. Some 23 have already left, according to the company.
But Just Answer, whose service connects people seeking advice with experts in fields ranging from veterinary medicine to law, does not plan to close shop there, Kurtzig said. Pulling out of the country, which is what many other companies are doing, is exactly what Russian President Vladimir Putin wants, he said.
"We’re not going to run away," Kurtzig said. "We stand with Ukraine and their fight for freedom."
For People.ai Inc. and Very Good Security Inc., the goal is simply to help get their Ukrainian employees to safety. Both companies declined to say how many Ukrainian workers they have and asked the Business Journal not to publish previously reported figures, which at least one of the companies said were not accurate. Based on past reports, the companies collectively employ dozens of employees in the country.
The invasion is personal for some
People.ai, which offers sales and revenue analysis software, has been preparing for a potential invasion for months. Beginning in November, when Russia first started to mass troops on Ukraine's borders, the Redwood City company's executives started planning to move its team members and their families out of Ukraine, CEO Oleg Rogynskyy told the Business Journal in an email.
For Rogynskyy, the invasion is personal. He's from Ukraine and still has family and friends there, including a childhood friend who is serving on the front lines as a combat medic in the Ukrainian Armed Forces.
"I am so proud of all our HR team who have stood tall and helped build and execute this (evacuation) plan, as well as those who continue to operate our business at full capacity," Rogynskyy said. "As a business, we are ready for this. As a Ukrainian, frankly, I am not."
Like People.ai, Very Good has been trying to help get its people out of Ukraine, Mahmoud Abdelkader, the San Francisco company's CEO said in a public statement. For the data security provider, which has raised $104.9 million from Goldman Sachs, Andreessen Horowitz and other investors, its Ukrainian workforce has been a key to its success," he said.
"We are working around the clock to ensure the safety of our team members, partners, and customers impacted by the current geopolitical environment," Abdelkader said. He continued: "Without their hard work, we simply would not be the successful business we are today."
The invasion could hurt the tech industry
Even as they were trying to deal with the logistical implications of the invasion, the CEOs were also wrestling with their personal feelings about it.
For Rogynskyy, who founded People.ai a little over six years ago and has raised $200 million for it from the likes of Y Combinator, Andreessen Horowitz and Lightspeed Venture Partners, the war hits close to home.
"The Russian invasion of Ukraine is horrific and devastating," Rogynskyy said. He continued: "I’m heartbroken. Every day I hear from friends and loved ones, and simply put, there are no words of comfort that I can provide."
The invasion is going to have a resounding impact on both Ukraine and the tech industry, said Kurtzig. Many tech companies, from giants like Google LLC and Amazon.com Inc. to Grammarly Inc., have significant operations and numbers of employees in the country, he said.
The invasion "hurts our Ukrainian employees, it hurts the nation of Ukraine, it hurts democracy, and it could lead to World War III," Kurtzig said.
A previous version of this story reported that about 260 of Just Answer's employees were in Ukraine. In fact, 252 of its employees are based in the country and 23 have already left. The Business Journal regrets the error.
