Venture capital investments in Ukraine

Venture investment

• Venture investment

2021: Investments in Ukrainian startups increased by $27 million, to $571 million - AVentures Capital

In 2020, investments in Ukrainian startups (most of them related to information technology) reached $571 million, which was a record in the history of the market. In comparison with 2019, the volume of investments increased by $27 million. This is evidenced by the data of AVentures Capital.

According to experts, most of the investments came from the largest companies, which either already have R & D centers in Ukraine, or are preparing to launch them. Mainly foreign venture capital funds invested in Ukrainian startups: in the seed round, their share was 66% compared to 34% of Ukrainian capital, and in round A, foreign investors invested more - 89 %.

A high level of activity, despite COVID-19, can be considered as evidence of the sustainability and adaptability of the high-tech sector of the economy, the authors of the study note.

The report notes that out of the total amount of investments in the seed round, Ukrainian startups received $42 million in investments, and at the stage of round A - $119 million. At the sowing and A-rounds, Ukrainian startups managed to attract 3.5 times more investments than in 2019. Only two funds invested at the growth stage - Horizon Capital and Dragon Capital.

Volume of investments in Ukrainian startups

About 62% of all investments in Ukrainian startups were in four companies: GitLab, Creatio, Restream and airSlate. The fastest growing Ukrainian startup in 2020 was Reface.io with 70 million downloads of the application since the beginning of 2020. The ranking of companies with the highest international income included Jooble, Genesis, Grammarly, airSlate, Creatio and others.

As for investors' exits from projects, in 2020 the volume of such transactions (exit) in the Ukrainian market amounted to $131 million, experts at AVentures Capital calculated.^[1]

Notes