Alex Iskold
Courtesy of Alex Iskold
Just over a month after Russia’s attack on Ukraine, Alex Iskold is trying to come to terms with the reality of his homeland while extending his hand in the best way he can.
Iskold, who immigrated to the United States from Ukraine at the age of 19, is a venture capitalist and managing director of 2048 Ventures in New York. He is also a technology entrepreneur and co-founder of 1K Project, a non-profit organization that allows anyone to donate $ 1,000 directly to a Ukrainian family.
So far, the project has raised more than $ 3.5 million and helped 3,500 families. But Iskold, now 49, knows the impending crisis for Ukraine, a country of 44 million people, is ready to deepen, no matter when the fighting ends.
More than 4 million Ukrainians have fled to neighboring countries, with more than half entering Poland as the Russian army strikes in populated areas. Millions more will certainly have no basic needs in the distant future and will need money for food, medicine, clothing and transportation.
“There are many ways you can donate, but when you donate direct help, you know that a family is better because you helped them,” Iskold said in an interview.
For a family of three or four, $ 1,000 is enough in just about a month, he said. With more than 70,000 families already waiting for support and more applications coming in every hour, the project needs individual and corporate sponsors to continue to contribute.
“This is a strong call to action, because companies could make a significant difference, and we are confident that we are the right ship to deliver aid,” he said. “We hope the companies will strengthen and help us reach more families.”
The concept behind the 1K project is simple: an individual donates $ 1,000, which is sent directly to a Ukrainian family.
Coping Mechanism
Iskold launched the 1K project with a different goal. He and Chrysi Philalithes, a fellow entrepreneur and start-up investor, created it in 2020 to help Ukrainian families during the Covid-19 pandemic. Iskold revived it when Russia invaded Ukraine.
“For me, the 1K project is a way out, a coping mechanism,” said Iskold, who left Ukraine in the early 1990s to escape anti-Semitic persecution. “I can sit on the couch and watch TV for hours, or I can help in different ways.
The 1K Project team consists of more than 50 volunteers, many of whom work 10 hours a week, from across the United States, as well as from Latvia, Ukraine, France and Kazakhstan. The operational team responsible for reviewing family applications and responding to sponsors includes some high school students and Iskold’s own children. The engineers come from companies such as Techstars, Yahoo, Mozilla, Venmo and Citigroup.
“We have the best engineering talent I’ve ever seen,” Iskold said. “They move at the speed of light.”
The group needs this because “the engineering challenge is huge,” Iskold said, adding that his experience with distributed systems has helped him build the technology. Meanwhile, the team is collaborating using software such as AirTable, Slack, Notion and Front.
“It’s just this amazing combination of code and people we use to get the job done,” he said.
To apply for help, families fill out a form. They need a bank card that accepts local currency to receive assistance. Approximately 40% of the applicants are still in their hometown in Ukraine, 20% are refugees outside the country and 40% are displaced.
After the volunteer reviews the application, this information is passed on to a sponsor, who then sends the money through Wise, a multi-currency money transfer service. The money is deposited directly in the family’s bank account so that the funds are available even if they are on the move.
Alex Iskold
Courtesy of Alex Iskold
“We wanted the system to exist and we kept writing code while financing families,” Iskold said. “We are close to 100% automated wherever possible, including checking applications for major errors. However, support emails and text messages for families and sponsors keep us busy. ”
Crypto is a popular option
Cryptocurrencies can also be donated. When this happens, they are sold for money, which is sent to families with the help of Wise and converted into Ukrainian hryvnia currency. A partner organization called Open Collective accepts donations over $ 1,000, whether through money, stocks or cryptocurrency.
People have taken advantage of the crypto option in creative ways, Iskold said. Meta Angels, a community of people working on digital art in the form of irreplaceable tokens, created a set of unique NFTs and sold nearly $ 50,000 for the 1K project.
Iskold said there is a widespread sense of responsibility that people feel for helping Ukrainians. Many are watching the war unfold and looking for ways to help.
Ukrainian authorities have called for an agreement on a ceasefire and a resolution to the humanitarian crisis sparked by the Kremlin invasion. At the Istanbul peace talks on Tuesday, Russia said it would reduce its attacks on Ukraine, but military forces continue to strike around the capital, Kyiv.
Iskold’s efforts cannot cope with the devastation, but for some families, that may be all they have.
“The 1K project is a bridge as long as the affected families can get back on their feet,” he said.
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