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The Deal Book of Ukraine

Key Findings
by

mr. Presentation

on 10 March 2015

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Transcript of The Deal Book of Ukraine

Even before the emergence of a startup and venture ecosystem, a multibillion-dollar IT industry developed in Ukraine, based on a high-level engineering pool. In 2014, this sector went through the political tumult with little damage.
Virtually non-existent five years ago, the Ukrainian venture market grew extremely fast in 2012-2013, reaching at least $80 million in 2013.
In 2014, the investment volume decreased by at least twofold, due to the smaller amounts invested rather than a significant decrease in the number of deals. This setback is likely to be only temporary.
Paradoxically, this troubled year saw a revival of the Ukrainian venture and startup scene. A new generation of domestic investors and startup entrepreneurs is emerging, angel investment is growing and the portion of the syndicated deals have significantly increased.
Following the development of business incubators, accelerators and industry events in 2012-2013, a range of industry associations, educational and media initiatives emerged in 2014, laying the foundations of a dynamic ecosystem.
At its earliest stages, venture market growth was fuelled essentially by foreign funds. In 2013, however, Ukrainian investors started investing more significantly, nearing one half of total venture transaction amounts. In 2014, several Russian and Western funds maintained their interest in Ukraine with some deals closed. A higher percentage of Ukrainian venture money was reported in 2014.

"Even though it has added an additional layer of risk, the political tumult of 2014 hasn’t affected our interest in Ukrainian startups."


"In our industries, project development and investment cycles are counted in years, which keeps them aside from political ups and downs. This is why our fund’s mandate to invest in Ukraine is still entirely valid."


Over the past 10 years, 30,000 people in Ukraine have learnt IT by themselves. Now we are helping the next 30,000 to do the same. This will bring the startup industry to the next level.


"The IT sphere has proven to be the most stress-resistant and protected from shock because of its “virtual” nature. It is undoubtedly the most promising field for an investor in Ukraine."

The venture capital industry, though young, has now many parts of the puzzle: from accelerators, to seed and Series A rounds, to buy-out funds. Series B and growth funds are still missing, with international funds closing the gap.
While domestically oriented companies face slower growth in 2014-2015, international projects continue to enjoy dramatic growth with several global success stories from Ukraine.
M&A activity gained momentum in 2013 and 2014, with notable acquisitions by Google, Rakuten and Apax to name a few. As the largest Ukrainian tech companies are reaching maturity, even more exits are expected in the near future with potentially nine-digit figures.
[
OUTSOURCING
R&D GLOBAL CO
ECOMMERCE
SOFTWARE TECH
• $2B+ in revenue
• 50,000+ engineers
• 500+ firms

• $ billions created
• 5,000+ engineers
• 100+ centers

• $2B local market
• Thousands employees
• 100+ companies

• $2B worth total
• Thousands engineers
• 2,000+ startups

[
[
[
[
Incubators
and accelerators
Non-profit
UVCA
[
Brian Feinstein of Bessemer Ventures Partners:
Alexander Galitsky of Almaz Capital:
Ciklum founder Torben Majgaard
Dmytro Tomchuk of the FISON fund:
[
Pre-seed
Seed
Series
A
Series
B
Growth
THE DEAL BOOK OF UKRAINE
Co-authors:
Yevgen Sysoyev
Yuliya Sychikova
Adrien Henni
2013
THIS REPORT IS OFFERED BY
[
[
$
$
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KEY FINDINGS
With the participation of:
KEY FINDING #1
2014
WITH THE SUPPORT OF
Late 90's
Early 2000's
Mid-Late 2000's
KEY FINDING #2
10+ deals of $2m or more
3 deals of $2m or more
2014
KEY FINDING #3
KEY FINDING #4
KEY FINDING #5
Industry associations
Media
Communities
KEY FINDING #6
KEY FINDING #7
KEY FINDING #8
KEY FINDING #9
$
$
$
$
$
$
$
$
$
$
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$
To receive your free copy of the report, please email us at
[
report@uadn.net

250 transactions analyzed,
more than 1,200 startups covered
THE DEAL BOOK OF UKRAINE
POWERED BY
mr.presentation
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