In 2023, the decrease in the volume of investments in Ukrainian companies slowed down to 11% per year. This shows the resilience of the industry against the backdrop of the war. The volume of deals increased 4.1 times compared to the first half of 2023 — from $68 million to $283 million.
AVentures Capital investment fund has published its fresh survey of the venture and IT market of Ukraine for the year 2024. AIN shares the key details.
- In total, Ukrainian tech companies attracted $209 million in investments in 2023. Early-stage investments account for 38% of the total volume of investments in Ukrainian technology companies in 2023 (vs. 39% in 2022).
$209 million of investments are distributed in the following directions:
- EdTech. 41% — approximately $85 million (including GoIT and Preply)
- IT Services. 14% — approximately $30 million (including Trinetix and Viseven)
- Finance. 14% — approximately $29 million (including Stroom and Fintech Farm)
- Retail. 10% — about $21 million (including Deus Robotics and Competera)
- Entertainment. 7% — approximately $16 million (including Respeecher and Competera)
- Other. 14% — approximately $29 million (including Osavul and Haiqu)
The largest investments were raised by five companies:
- Preply — $70 million from Horizon Capital, Reach Capital, Hoxton Ventures, Owl Ventures, and others.
- Fintech Farm — $22 million from Nordstar and others.
- Dressx — $15 million from Greenfield Capital, Warner Music Group, The Artemis Fund, Slow Ventures, and Red DAO.
- Viseven — an undisclosed amount of investment from Horizon Capital’s Growth Fund IV.
- GoIT — an undisclosed amount of investment (may be as much as $15 million) from Horizon Capital’s Growth Fund IV.
In 2023, Ukrainian entrepreneurs received a total of $6.9 million in grant funds, the largest part of which was paid by USF, Brave1, and the European Innovation Council Accelerator.
Military Tech is a new growing vertical
- According to the research, Ukrainian miltech companies attracted $6.7 million in investments (including grants);
- Brave1 invested $2.3 million in Ukrainian defense companies;
- Osavul attracted the most funding ($1 million) among Ukrainian miltech companies in 2023;
Ukrainian funds continue to fill their budgets: total monetary liabilities amount to $532 million. Horizon Capital reached $350 million at the closing of its Horizon Capital Growth Fund IV, which took place on February 19, 2024 in Tokyo.
Also, in the spring of this year, the Ukrainian Venture Capital Association launched the Ukrainian Fund of Funds (FoF). The expected initial size of the fund is $300 million.
Also, in 2024, a new Ukrainian “unicorn” appeared — Creatio attracted $200 million with an estimate of $1.2 billion. Potentially “unicorns” can also become: Headway, BetterMe, Universe Group, Ajax, Restream, Welltech, Preply.
