Meeting with the President of Ukraine to discuss the development of venture capital and startup ecosystems in Ukraine12 Oct 2016

On July 6 th  the President of Ukraine Petro Poroshenko conducted the meeting with investment-sector and IT-industry representatives to discuss the venture capital and startup ecosystems in Ukraine.

As it is known, in January of this year the development of high-tech sector in Ukraine was declared to hav the priority place. So the meeting run the questions of existing problems in IT-industry and the solution may be suggested.

10 representatives of investment and IT sector took part in the meeting. Ukrainian Venture Capital an Private Equity Association (UVCA) was represented by Andriy Kolodyuk (founder and managing partner o investment fund AVentures Capital, Chairman of UVCA), Lenna Koszarny (Member of UVCA Supervisor Board, founder and managing partner of investment fund Horizon Capital), Eugeniy Utkin (KM Core member of UVCA). Also the founders and directors of leading Ukrainian IT participated the round-tabl discussion.

President of Ukraine Petro Poroshenko, Deputy Head of the President Administration Dmytro Shymkiv an other members President's team represented the side of Administration UVCA members suggested six specific proposals necessary for the development of high-tech and IT i Ukraine that are expected to be supported by state. Their implementation could stimulate venture business startup and IT-business ecosystems’ growth in general So the main proposals announced include:
- Establishing of the governmental institution responsible for innovation policy - similar to Office of th Chief Scientist in Israel;

- Supporting the implementation of "Fund of funds" investment program. It can be provided by Europea Investment Bank (EIB) that finances venture funds and other international institutions which implemen this mechanism. Such a program could foster the development of venture capital and IT-industries allowin existing 2500 startups (according to UVCA data only 66 of them attracted investments last year) to ge funding in Ukraine, thereby to shrink qualified specialists’ outflow.

- Conducting the simplification of obtaining working visa for foreign specialists. Considering the world’ experience, reducing the obtaining visa period up to 1 day and easing the procedure in general is necessar for Ukraine, especially for specialists in IT-sector. In such a way we can avoid corruption and bureaucracy foster the attraction of foreign capital and entrepreneurs, improving Ukrainian business-climate.

- Protecting IT companies from unlawful actions of legal authorities. This goal could be reached throug imposing a moratorium on elimination of severs from the companies that conduct innovative activity. Th President was suggested to control this question personally to save Ukrainian IT-industry throug preventing business’ outflow.

- Improving the legislation for intellectual property protection. Today the absence of real protectio mechanism causes the situation that not only Ukrainian budget sustain a great loss but legal companie suffer a billion loss as well.

- Implementing favorable fiscal conditions for conducting IT business in Ukraine same to technologica parks’ conditions all around the world. That could definitely play an important role in attraction of foreig companies and boosting country’s attractiveness for doing business.

After all it is important to note that President not only listened carefully to all proposals, but als commented on each discussed issue.

"The conversation went in a really serious way. President Petro Poroshenko promised to learn more abou our suggestions and to conduct the follow-up meetings to establish the dialogue between the state and I industries aiming for further productive cooperation, - Andriy Kolodyuk has mentioned. - I hope that w will work on each issue and will have positive results of it. Thus, it was only the first meeting."