Ukrainian Venture Capital and Private Equity Association (UVCA) in partnership with Deloitte, presented its annual Overview of Ukrainian investment market. Following a dip in 2016, the data for 2017 indicates that the total amount of venture capital investment in Ukrainian IT companies has reached its peak totaling $259 million, tripling compared to the previous year. Although in line with the global trend of shifting investors’ focus from quantity to quality, the number of deals remains at about the same level with 89 deals.
For the first time, the Overview also covers two additional segments on the top of private capital trends: private equity deals and ICO.
2017 was an exceptional year for private equity investments due to a relative rise in activity, compared to the last 3 years, when the average number of deals did not exceed 4. The value of PE deals in Ukraine totals $ 126.7m, and numbers at 14, however, the deals were undisclosed.
Initial Coin Offering (ICO) financing is the new trend in attracting investments by Ukrainian startups. 19 startups succeeded in attracting $160m within ICO in 2017. Moreover, VC funds focused solely on crypto-related businesses emerged, establishing stronger ties between private capital and blockchain. Neuromation ($71M), Dmarket ($19,1M) and Propy marketplace ($15,4M) were the top 3 ICOs from Ukraine in 2017.