Foreign investment in Ukraine has increased considerably since 2014
According to the Ukrainian Venture Capital and Private Equity Association, $132 million was invested in Ukrainian companies in 2015. As noted, these funds were largely private and venture investments in IT companies. According to the results of the study, only 66 contracts were signed in 2015, but the total amount of investments is higher than in 2014 by 237%, Ekonomichna Pravda reported.
The creation and improvement of the investment climate in Ukraine is the main task of the Association. The report was a full analysis of the investment sector, according to the Executive Director of UVCA, Olga Afanasyeva. According to her, Ukrainian IT companies attract more and more foreign investors without losing the interest of local investors.
Approximately half of the contracts (48%) include the participation of international funds. This fact is evidence of a global interest in Ukraine and the recognition of Ukrainian projects in the global market. The clear majority of agreements (62%) are venture investments made to projects in the early stages. This is very interesting because venture investing carries the most risk.
Also, investments in the growth stage appeared in 2015. Despite the fact that there were only four such contracts, the total amount exceeded $100 million. The emergence of such agreements will create more activity in the investment market because they are examples of successful outputs and sales of companies.
“Ukraine is already the world’s leading provider of IT outsourcing and our startups become competitive in the global market,” the head of the Supervisory Board of UVCA, Andrew Kolodyuk, said. According to him, global investors are paying more and more attention to Ukraine, but there is still insufficient capital in the country’s market in comparison with other European countries.