Prime Minister supported UVCA Fund-of-funds initiative in terms of public-private partnership21 Jul 2017

On July 21 Prime Minister of Ukraine Volodymyr Groysman met with Ukrainian Venture Capital and Private Equity Association (UVCA).

Interests of investors at the meeting were presented by Olga Afanasyeva (Executive Director of UVCA), Lenna Koszarny (UVCA Supervisory Board member, Founder and CEO of Horizon Capital) and Andriy Kolodyuk (Chairman of UVCA Supervisory Board, Managing Partner of AVentures Capital).

The main topics of the discussion and results were:

1 — UVCA proposal to establish of Fund-of-funds, that will invest in existing and new venture funds in Ukraine on a competitive basis, which could finally invest in more than 3000 already existing Ukrainian start-ups.

Establishment of the Fund-of-funds will allow to attract investments from large international institutional funds to the Ukrainian investment ecosystem. This financial instrument is used by almost all European countries for last 20 years and has already proved its success. Besides, it is understandable model for foreign investors. During the last year, the Association is in constant dialogue with international institutional investors and they are potentially open, and express interest in this project. The only condition to make this Fund happened is the financial participation of the government, at least in the minimal size. The Association and its members are making every effort for Fund-of-funds implementation

Andriy Kolodyuk
Chairman of UVCA Supervisory Board

Implementation of this project will become a catalyst for Ukrainian innovation, industry, and increase capital inflows of investments into the country.

The Prime Minister supported the proposal to create a Fund-of-funds. The Head of Government proposed to draft the concept of work of the fund and to combine with the activity of the Council of Innovations to be launched shortly. Volodymyr Groysman added that following the discussion and approval of such a concept the Government would have a chance to develop ways for possible participation of the Government in the formation of the Fund’s budget.

We are delighted that Prime Minister Groysman met with UVCA representatives today and welcome his stated support for a Fund-of-funds for start-ups to support the ecosystem in Ukraine. UVCA is ready to be partner in this effort given how important this is for the start-up ecosystem and for Ukraine. It is essential that young and talented Ukrainian entrepreneurs who have taken the bold move to launch these start-ups have access to finance in their home country. IT is both a top growth sector for the Ukrainian economy and also has the potential to redefine how Ukraine is perceived globally in this age of digital transformation

Lenna Koszarny
UVCA Supervisory Board member, Founder and CEO of Horizon Capital

2 – On behalf of the Association Olga Afanasyeva (CEO of UVCA) invited the Prime Minister to visit the Silicon Valley, which is traditionally considered the “world center” of the innovation economy and startup industry.

Olga Afanasyeva mentioned that this could become the first official visit of Ukrainian Prime Minister to Silicon Valley in the 25-year history of Ukraine. At the same time Silicon Valley was previously attended by leaders of the most developed countries (Israel, Japan, France, Italy, etc.). Also Volodymyr Groysman was invited to head the Ukrainian delegation at the CES exhibition in Las Vegas in January 2018. This is the second time when Ukraine will be represented at the International Consumer Electronic Show (CES). As in the past year, UA Tech Expo Zone during the CES will be settled up by UVCA with the support of Western NIS Enterprise Fund (WNISEF).

3 – Visit of the Prime Minister and profile ministries representatives to the International Economic Forum (WEF) in Davos, where the Ukrainian House will be organized for the first time (January 2018). Official support for such a project is an important signal to the top international community to support the country's investment sector.

Volodymyr Groysman expressed interest and assured that he will thoroughly consider the proposition and eventually join at least one of the events.

The Prime Minister expressed his assurance that Ukraine needs "creation of a holistic ecosystem of investment and innovation support", thereby promoting the development of technological solutions and their introduction into the economy, and simultaneously eliminating the accumulated problems of investment development, in particular pressure on business.

I will not dissemble facts of pressure on business, as I consider it a fundamental issue

Volodymyr Groysman
Prime Minister of Ukraine