The number of deals with Ukrainian companies has risen on 32% in 2016 - up to 87 deals26 May 2017

Ukrainian Venture Capital and Private Equity overview 2016

There were 87 investment deals with Ukrainian innovative companies in 2016 , which is 32% more than in 2015 - such a data was presented by the Ukrainian Venture Capital and Private Equity Association (UVCA) in its annual market overview. The overview has gathered information on venture, private equity and angel investment deals - their total volume is accounted in 88 mln. USD in 2016. The amount of investments over the past 5 years growth to 400 mln. At the same time, the volume of investment deals decreased on 33% since 2015 (including 13 undisclosed deals), but still is higher than in 2014 at 125%. The reason is few deals in 2015 amounted in dozens of millions.

Distinguishing feature of the market in 2016 is the prevalence of seed-stage deals. Thereby among all 87 deals 73 were made at the seed-stage with the average amount of ticket more than 500K USD. So we can expect that these initially invested companies will attract bigger investments in future.

The average ticket amount (on all stages) has grown up to 1М USD in 2016.

Investment activity, shown in the Ukrainian VC&PE Overview 2015 has become a catalyst for the deals number increase. After the whole world had seen investments’ growth and Ukrainian IT companies’ success, market’s activity grew up. Taking into the account that the average time for closing deal is 8-12 month since negotiations start, we can predict both number of deals and their volumes increase, which we will see in 2017. To prove the word let’s look at the investment case of Ukrainian Grammarly, which has already happened with 110 mln. USD investment, but will be listed in the Overview only next year. With this regard we do hope that results of 2016 will not only present us the data of Ukrainian investment market but will also show strong perspectives of its development.

Andrey Kolodyuk
Chairman of UVCA

Highest number of deals since 2010

2016 is also marked by the entrance of international investors to the market by becoming UVCA members, for example joining of HP Tech Ventures in June. Around 60% of all the deals are being closed with foreign partners and the international capital accounts in 80% in total investment volume (not considering undisclosed deals). To say more - the most attractive sector for investments in 2016 was Online services - 16 deals with 9 mln USD.

2016 was defined by the joining of prominents world’s investors, which have already become our members. According to UVCA survey, 68% of investors have reached their expectations about 2016. Another significant achievement is the existence of 8 exits on the market this year, which is the great rate to manifest market’s attractiveness. We also believe that not only the number of projects will grow (today there are 3000 of startups on the market), but the quality will evolve as well, motivating more investors deal with our entrepreneurs

Olga Afanasyeva
Executive Director of UVCA

Let us also remind that very recently UVCA has released - Investors Book. It has gathered the information about main industry players: venture funds, accelerators, incubators, private equity funds and other organizations, which enhance investment market. Only for the first day of release it was watched by 10 000 people from all around the world.

Ukrainian Venture Capital and Private Equity Association (UVCA) has been established in mid-2014 by the example of the European Venture Capital and Private Equity Association (InvestEurope), and currently unites 40 members - private equity and venture funds, accelerators, incubators, educational institutions, and non-government organizations that make significant impact on the development of Ukrainian investment market. Association promotes investment opportunities in Ukraine for foreign investment funds, conducts market research, lobbies laws for improving investment and business climate, implements Invest in Ukraine activity.