What to expect from Ukrainian investment market in 201709 Dec 2016

On November 24 Ukrainian venture capital and private equity association (UVCA) celebrated its II Anniversary and presented results of 2 years’ activity - thereby UVCA Members have committed their willing to continue and expand. This week Association announced priority goals and plans for the next year.

The event was held in warm atmosphere and kindly sponsored by the UVCA member Almaz Capial, who has become a member of UVCA in July 2016.

Just to remind, there are 41 company - leaders of Ukrainian and international investment industry, including venture funds from Silicon Valley, - has become a Member of UVCA since its foundation (it shows 36% growth over 2015). Therefore, one of the major goals Association sets is increasing the number of international members, that will invest into Ukrainian companies as well as conclude syndicated deals with local investors.

It is also important to say, that UVCA Supervisory Board, which approves and controls the implementation of initiatives and projects, has been re-elected and now consists of:  Lenna Koszarny (Horizon Capital), Alexander Galitsky (Almaz Capital), Vitaly Golomb (HP Tech Ventures), Bohdan Kupych (KM Core), Oleksii Vitchenko (Digital Future), Alexandr Soroka (Startup.Network), Michael Kharenko (Prudent Investment), Michael Ryabokon (Noosphere Ventures) and Andrey Kolodyuk (AVentures Capital) who still is the Supervisory Board Chairman.

Showing the great annual results of UVCA’s activity, Olga Afanasyeva continues being the Executive Director of the Association:
"Our mission is to improve the investment-climate of the country and foreign investors’ awareness about Ukrainian business ecosystem. At the same time support entrepreneurs and startups. That`s why UVCA conducts free workshops with industry leaders, as well as organizes projects awarding winners with the opportunity to present their projects at international scene"
UVCA major plans for 2017:
  • Implementing the Fund of Funds investment program. UVCA continues working with the government and potential international investors in frames program’s implementation. According to this Ukraine may get $500 million for investment in IT.
  • Supporting Ukraine Discovery Tour, which is going to be held by Ukrainian Global Shapers Community during the Eurovision Song Contest (May 2017). The idea behind it is showing that Ukraine has not only vocal talents, but the great entrepreneurial and technological talents as well.
  • Holding the first Ukrainian Investment Event will be held at the World Economic Forum (WEF) in Davos in early 2017. Among the guests and participants not only representatives of Ukrainian investment market will be present, but also the most influential leaders from all around the world will join the first Ukrainian Investment Event in frames of WEF.
  • Publishing the Ukrainian investment market Overview, 2016. One of the UVCA’s activity objectives is collecting and spreading the relevant information on the Ukrainian investment market opportunities. The first VC & PE Overview was published in 2015 - according to it the total amount of investments in 2015 has reached $132 mln., which is 237% more than in 2014. Association is also working on the overview of the main players at the Ukrainian investment and IT ecosystem to give both local and foreign communities the understanding of Who is Who on Ukrainian investment market.
  • Lobbying laws and working on adopting new legislative amendments that can optimize the work of IT companies and investors, improve investment and business climate in Ukraine. This responsibility goes to the Legal Committee of the Association, which is persistently working on bringing these improvements to work. Not so long ago, for example, the legislative amendment #3719 that restricts illegal actions during the search of the IT companies, including the seizure of servers, was adopted in the first reading and currently is undergoing the preparation to the second reading. The amendment #4541 has also passed in the first reading - it aims to remove barriers for foreign investments.
  • Holding of the first Ukrainian Expo-zone in Las Vegas at the Consumer Electronic Show 2017 (with startups who have become the winners of UVCA Challenge). For more in-depth understanding the American venture ecosystem, the Association organizes the Roadshow for start-ups with visiting the largest investment funds and IT companies operating in the United States, with those which are based in Silicon Valley in particular. One of them will be the HP Tech Ventures Fund, which was founded by HP literally in May 2016 and already has entered Ukrainian investment market by joining UVCA in July 2016.
  • Establishing new connections between Ukrainian entrepreneurs and investors with the global market players. Earlier, the Association organised investment tours to Canada, Israel and the United States. In 2017 UVCA is planning to have new ones being organised to Georgia, Germany and the US. Being primary oriented on promoting Ukrainian investment opportunities around the world we see that such tours result in increasing of the number of syndicated deals and delivering the better understanding of external business ecosystems to Ukraine.

"Investments will flow to Ukraine if our own investors that already operate domestically feel comfortable. Only after we reach that they will be able to convey a message around the world, which is based on their own experience - it is possible and worthwhile to invest in Ukraine. Understanding this, all the efforts of the state must be directed towards supporting both local and foreign investors, who test Ukrainian market by concluding their first deal here - says Andrey Kolodyuk, Chairman of the Supervisory Board UVCA. - The Association continues working with the government on developing effective mechanisms aimed at improving the investment climate. There is no one left in the world who believes in "Declaration on the prospects of" - people only trust when see the real action. Therefore, we reserve populism to politicians while doing the real work by ourselves"

All the activities of UVCA are divided in 5 main directions: Invest in Ukraine, Legislation, Energy, Research and ICT - all of them are carried out through specialized responsible committees.