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DealBook of Ukraine
2022 edition
Covering tech investment deals in Ukraine since 2014
Growth continues despite Russian invasion
Intro
AVentures Capital presents
The DealBook of Ukraine, 2023 edition
The DealBook is our annual overview of the
Ukrainian tech investment industry. This edition
comprehensively covers the full year 2022 and the
deals of 4M 2023
Fight a war with Russia and continue to grow the
tech industry internationally? Ukrainian leaders said
yes to both questions and surprised the world
We would like to cordially thank all the market
participants who contributed their insights to the
report & the international community
that #StandsWithUkraine
DealBook of Ukraine
Previous editions
Other reports on Ukrainian tech
Our joint reports with industry partners
NEW
2
3
AVentures Capital
Founded in 2012, we are a leading tech
investment firm with an investment fund
and M&A advisory arm focused on global
companies that leverage R&D in Ukraine
and CEE
With over a dozen companies in its
portfolio, AVentures Capital backs
talented entrepreneurs from Ukraine and
CEE to fuel their global expansion in the
US and EU markets
Director
yuliya@aventurescapital.com
Yuliya Sychikova
Co-founder & managing partner
ys@aventurescapital.com
Yevgen Sysoyev
Business Analyst
tetyana.torchylo@aventurescapital.
com
Tetyana Torchylo
Authors of the report
3
4
AVentures Capital investment banking
arm
IB & M&A Advisory for tech companies in
Central Eastern Europe
Professional, client-tailored investment banking services for
the tech industry:
• Investment Banking
• M&A strategy development & implementation
• Buy-side advisory
• Sell-side advisory
4
Buy-side advisor to URF fund
on acquisition of significant
minority stake
US$ 5m investment
from
Sole advisor to Jooble
on sale of significant
minority stake to
M&A buy-side advisor
to Ciklum on M&A
strategy and roll-on
acquisitions in CEE,
LatAm, US
Buy-side advisor to UAtech
fund on acquisition of
majority stake
Minority investment into
a leading pharma
vertical software
development company
2018
100+ targets
pipeline built
Sell-side co-advisor to Daxx
during the sale to Grid
Dynamics
Co-Adviser
US$ 68m Capital Raise
Majority stake sale to
a Polish software
development
company
(ex IT Kontrakt)
Exited
Acquisition by
Portfolio company of
Exited
Minority investment
in a leading IT
outsourcing company
2019
Exited
The Ukrainian
Redevelopment Fund
Sell-side advisors Buy-side advisors Investments
AVentures track record: selected deals
Minority investment
in a leading IT
outsourcing company
2019
Exited
Minority investment
in a leading IT
outsourcing company
2019
Exited
Minority investment
in a leading IT
outsourcing company
2019
Exited
Minority investment
in a leading IT
outsourcing company
2019
Exited
Acquired by
2021
Exited
All-in-One SaaS Data
Protection Platform
for mission-critical
Apps
2017
Acquired for
US$ 85m
by
2021
Exited
Global medical tourism
marketplace
2017
Global leader in
connected pets
2015
Buy-side advisor to
Horizon Capital on
fundraising of
US$ 425m round for
airSlate
5
Inaccuracies and updates
Even though we have done our best to provide accurate and complete information, we recognize the limits of such industry reporting. We will be pleased
to receive any corrections, notices of inaccuracies or information on deals we may have missed
New and updated data will be included in the next publication, improving the level of detail and the quality of the report
Please submit corrections, updates and/or suggestions to tetyana.torchylo@aventurescapital.com. Our thanks in advance for your assistance, which will
make the next DealBook a better resource for the investment community
Copyright policy
The content of this report and its summaries are protected by copyright. Individuals and organizations can, without prior authorization and free of
charge, copy and publish without limitation short extracts in the form of quotes
This report must be clearly indicated as the source with a link to SlideShare or Google Drive page of the report. To copy and republish large extracts, or
the full report, or for other editorial cooperation opportunities, please contact Tetyana Torchylo at tetyana.torchylo@aventurescapital.com
Distribution opportunities
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Disclaimer
6
Growing tech industry
with a decline in new
investments
Annual investment volume
US$ m
Source: public data
42
146
80
265
323
542
571
832
218
2014 2015 2016 2017 2018 2019 2020 2021 2022
Grants
Growth and Secondary
Series D
Series C
Series B
Series A
Seed
In 2022, the total VC and PE investment volume in
Ukrainian tech companies fell by 74% since last year
The decline in investments is partially explained by the
global economic slowdown. Both the US and the EU have
seen a 20-30% slowdown in their own VC investment
volumes between 2021-2022
The largest drop in Ukrainian investment volume was in
Growth and Secondary deals, which usually constitute the
majority of the deal volume. Without it, 2022 has brought
more new investments than any other year besides 2021
Most Ukrainian tech companies being global or US
market-oriented and capital efficient, continued to grow in
revenue after a 74% decline in new investments. Hence,
overall, 2022 was a good year of growth
7
US$
218m
US$
571m
US$
832m
4 Ukrainian companies raised 62% of all
funding volume in 2022
5
5
%
5
8
%
6
2
%
2020
2021
2022
Airslate (Document Workflow)
In July 2022, the company raised US$
51.5m from G Squared and UiPath
Ventures. Airslate’s valuation reached
US$ 1.25b, placing the company
among unicorns
Preply (EdTech marketplace)
The company raised US$ 50m in a
Series C round led by Owl Ventures.
The total volume of investments in
Preply reached US$ 100m
Spin.ai (cybersecurity)
In August 2022, Spin.ai closed a
Series A round for US$ 16m from
Blueprint Equity, Blu Ventures, and
Santa Barbara Venture Partners
Fintech Farm (Neobanks)
In 2022 and early 2023, Fintech
Farm raised US$ 22m from
Nordstar, Chrome Capital, and
others. Last year Fintech Farm also
closed a Seed round of US$ 7.4m,
bringing the total volume to almost
US$ 30m
8
9
Preply is an online language learning marketplace that connects students to
tutors of over 50 languages
The company was launched in Ukraine in 2013 by 3 entrepreneurs and
immediately started scaling through the CEE region. Later the company shifted
towards the US, Western Europe, and South Africa.
Now the company is based in Kyiv and Barcelona and employs almost 500 people
In July 2022, Preply closed the latest Series C round for US$ 50m. Led by Owl
Ventures, the round brought up the total amount of Preply’s investment to over
US$ 100m
“In the U.S. – its single largest market – it has seen the
number of new customers double week over week.”
“Ukrainian startup Preply beats the geopolitical odds
with $50M to grow its language learning platform”
Key numbers and awards
Used by
40,000 tutors
Tutoring in
50 languages
Users from
120 countries
30% of revenue
comes from US
9
10
International funds continue to provide majority of
early-stage financing
40
31 35
70
49 44
161
242
89
2014 2015 2016 2017 2018 2019 2020 2021 2022
Seed & Grants Series A
1. Despite the war the early-stage investment in
Ukrainian companies remains higher than
average
Source: public data
Annual early-stage funding, US$ m
89%
Series A
2022
Seed & Grants
2. Foreign capital
prevalence
66%
2020
2021
Seed & Grants
Share of foreign
capital invested
77%
Series A
46%
Seed & Grants
94%
Series A
51%
Seed & Grants
Ukrainian investors most actively participate
in early-stage rounds of up to US$ 1m in Seed
and up to US$ 7m in Series A
With more capital to commit, foreign investors
remain active in Series A and later rounds
• In 2022, the most active Ukrainian Seed
funds were Flyer One Ventures, SID
Venture Partners, Geek Ventures and
hypra
• New early-stage VC funds, like Burner,
Vesna.Capital, hypra, and hi5 ventures
continue to emerge
• Horizon new $250M fund was raised in
2023, and it would be the largest ever
tech fund dedicated to Ukraine, mostly
for Series B-C stages
3. Startups have access to
abundant early-stage funding
Foreign Ukrainian
10
11
Exits as a sign of maturing product ecosystem
Target Acquirer Sector Target bio
DMarket
Mythical
Games
Virtual
marketplace
Cross-chain marketplace to trade NFTs and
virtual items
Augmented
Pixels*
Qualcomm
(NASDAQ:
QCOM)
Computer Vision
Proprietary simultaneous localization and
mapping technology (SLAM SDK) for robots and
flying drones
Homsters Ringier
Property
marketplace
Automated solutions for marketing and sale of
new property developments
NewOldStamp
Blackpearl
Group
Email Marketing Email signatures marketing platform
Resp.App redis Software
Easy-to-use GUI to access Redis databases and
perform basic bulk operations
Globally-successful Ukrainian product companies continue to attract the interest of strategic players, international buy-out funds,
and through exit, generate returns for backers
DMarket became the largest known exit of 2022. During the last financing round in 2020, the company was valued at US$ 28m.
Now, two years later, the valuation of the company is estimated to be over US$50m
*Note: Augmented Pixels were acquired in the period between 2021 and 2022 11
12
2021
2018
Raised US$ 100m in Series D round
from Iconiq Capital and others
Total valuation: >US$ 1.1b
2022
Raised US$51.5m in Series B round
from G Squared and others
Total valuation: >US$ 1.25b
Ukrainian unicorns…
Raised US$ 107m in Series D
funding from Akkadian Ventures,
Mubadala Ventures and others
Total valuation: US$ 1.1b
Raised US$ 200m in a round led
by Baillie Gifford and BlackRock
Total valuation: >US$ 13b
2019
BitFury’s unicorn status was confirmed
during US$ 80m financing from
Korelya Capital in 2018
Total valuation: >US$ 2b
Publicly disclosed valuation of >US$ 1b …
12
13
Global Digital Solutions
Company
…and unicorns to be
Product Companies
Software development companies
Manufacturer of security
systems for homes
No-code platform to
automate workflows and
CRM
Co-founding company that
builds global tech businesses
with CEE entrepreneurs
Online language
learning marketplace
that connects
students to tutors of
over 50 languages
Multi-streaming solution to
distribute and monetize the
live video content
Global Digital Solutions
Company
The companies with US$0.2-1b+ valuation, but publicly undisclosed
13
14
Ukrainian market
champions going abroad
Poland
Bulgaria
Israel
Kazakhstan
Romania
UK
Czechia
Greece
Italy
USA
Countries with presence of MakeUp, Rozetka and monobank
(selected)
#1 e-commerce platform in
Ukraine with 34m visits per
month
#1 neobank in Ukraine with
over 6m users in Ukraine
and Poland
Uzbekistan
#1 cosmetics online retailer
with over 340m users in 29
countries
Sped up by the war, local
winners of e-commerce and
neobank niches expand to
Europe and Asia with the goal
of winning new market
geographies outside of Ukraine
14
Fund landscape: most active investors
Seed – Series A Growth stage
Local
Foreign
Global competition for best deals
• Ukrainian startups typically target
global market, set up a US or EU
legal entity/office, and hence are
fundable by international funds
• Most local funds support Ukraine-
born startups through early-stage
capital raise
• An increasing number of
international funds invest across all
stages: from offering world class
acceleration programs to leading in
growth rounds of Ukrainian startups
• The most active local seed fund in
2021-2022: Flyer One Ventures
• The largest local fund: Horizon
Capital which raised over $250M in
a new fund in 2023
15
16
Defense-tech: selected
players
Source: DOU
Builder unmanned aerial vehicles since 2019. In
Dec. 2022 two models received exploitation
permissions from AFU
Developer of ultra-lightweight launch
vehicle
Developer of reusable airstrike drone
with the lowest cost of mission
Developer of anti-drone guns and drone
detection technology
Developer of unmanned robotic systems.
Also modernizes vehicles into unmanned
ground robotic systems
Developer of “Strata 22,” a military
training simulation systems for aviation
and tanks
Developer of Electronic signals
intelligence solutions for the security,
defense and law enforcement agencies
of Ukraine
Developer of produces high-tech unmanned
aerial vehicles since 2012
Producer of unmanned aerial vehicles
(RALLUS & CICONIA) and supporting
software since 2014
Developer of unmanned ground vehicles
and robotic systems
Producer of fixed-wing and multirotor
drones at the affordable price
Developer of a software system
“Kropyva,” which is used by about 90% of
artillerymen
Developer of netcentric and robotic
military capabilities for the security and
defense forces
Developer of unmanned aviation
systems since 2013. One of the models is
already used on the battlefield
16
17
Appendix
Investors’ portfolio, top product companies and the Deal Table
Investors portfolio (1/4) Early-stage investors
Selected Ukrainian portfolio companies by funds
Exited
Exited
Exited
Exited
Exited
Exited
Exited
18
Investors portfolio (2/4) Early-stage investors
Selected Ukrainian portfolio companies by funds
Exited
Exited
Investors portfolio (3/4) Early-stage investors
Selected Ukrainian portfolio companies by funds
20
Investors portfolio (4/4) Growth stage investors
Selected Ukrainian portfolio companies by funds
21
Product tech export oriented
Ukrainian companies
Tech holding with fast-
growing products
operating in developed
and emerging markets
AI-powered spell-check
SaaS company
Document
management SaaS
Multifunctional
cryptocurrency
exchange
Leader in Connected
Pets IoT market
segment
Cloud CRM for sales,
marketing and service
automation
Security and cleaning
software for Mac
Private language
tutoring platform
Payment and content
distribution platform for
digital goods
Developer of iOS
productivity apps
Mobile app for face
swap in videos and
memes
Mac software
development
company
Global provider of
secure business
collaboration software
AI platform for enterprise
sales, marketing, and
customer success
On-demand dine-in
technology platform
Full-service bitcoin
and blockchain
technology company
Second most visited
job aggregator in the
world
Distribution solution for
the live video content
Smart security
systems manufacturer
Mobile based anti-
fraud solution
22
Neobanks in
emerging markets
Logo Company
Sum
raised,
US$ m
Investors
Investment
type
Deal class Brief description
AirSlate 51.5 G Squared, UiPath Ventures VC Series B A no-code business automation platform
Preply 50.0
Owl Ventures, Diligent Capital, Hoxton Ventures,
Educapital, Evli Growth Partners, Grupa Pracuj,
Swisscom Ventures, Orbit Capital
VC Series C Language learning app and e-learning platform
Fintech Farm 22.0 Nordstar, Chrome Capital, and others VC Series B Neobanks in emerging markets
Spin Technology 16.0
Blueprint Equity, Santa Barbara Venture Partners,
Blu Venture Investors
VC Series A
AI-Powered SaaS Data Protection platform that monitors
and back up G Suite, Microsoft 365, and Salesforce data
TurnKey Lender 10.0 OTB Ventures VC Series A
Global fintech B2B Software-as-a-Service (SaaS)
company specializing in AI-powered lending automation
solutions
Utorg 5.0 VC Dragonfly, TA Ventures, Hypra VC Seed
FinTech company that offers а modern fiat to crypto
exchange infrastructure
Jentis 3.4 Pragmatech Ventures VC Seed Web tracking and data privacy platform
Jarvi Games 3.0 Play Ventures, Velo Partners, The Games Fund VC Seed Game development studio
Everlend 2.6
GSR, Serum Foundation, Everstake Capital, Portico
VC
VC Seed
Decentralised, meta lending protocol with inbuilt money
market
Fairo 2.3 Raiffeisen Bank International Strategic Seed
Fairo is an app that offers invoicing, tax reporting, and
accounting services.
Funding deals of 2022
23
Logo Company
Sum
raised,
US$ m
Investors
Investment
type
Deal class Brief description
PromoRepublic 2.3
NetSolid, Flyer One Ventures, Innovestor, Netsolid,
Diligent Capital, Steve Johnson, ex CRO Hootsuite,
Ari Korhonen, Andreas Mihalovits, Kirill Bigai
VC Series A Social media content automation solution for SMEs
Della AI 2.0 Pragmatech Ventures VC Seed Contract review platform powered by AI
Yope (Salo) 2.0
hi5 Ventures, Horizon Capital, TA Ventures, iClub,
Kolos Ventures, Geek Ventures, Vesna.Capital
VC Seed Communication Application
YouScan 2.0 Kinnevik & VNV Global AB VC Series A
AI-powered social media listening and image recognition
platform
Choice QR 1.7 Presto Ventures, Seedcamp VC Seed
SaaS service for DINE IN experience, take away and
own delivery.
Zibra AI 1.5 SID Venture Partners, Gismart, Angels VC Seed
AI-generated 3D assets and visual effects for virtual
worlds and experiences
Fuelfinance 1.0 Undisclosed VC Seed Cloud-based financial department
Remo (Noffice) 1 Fedoriv, others Angel Angel Provider of high-tech working spaces
GoSolo 0.9 Maksym Lytvyn, Oleksii Shevchenko Angel Angel
Digital Banking and Financial Toolkit enabling
entrepreneurs to start and manage their business
Peech 0.6 Flyer One Ventures VC Pre-seed Text-to-speech app
Funding deals of 2022
24
Logo Company
Sum
raised,
US$ m
Investors
Investment
type
Deal class Brief description
EvaСodes 0.5 Hypra VC Pre-seed
Developer of blockchain products and Web3 solutions for
startups
Party.Space 0.5
Seed Club Ventures Robert Zawiasa, NiMA Asghari,
Yurii Monastyrshyn
Angel Angel Virtual party platform
TRANSENIX 0.5 N1 VC Seed
An innovative system for accepting payments in the
trading network
V-Art 0.4 Geek Ventures VC Pre-seed Platform for displaying, selling and collecting digital art,
datuum.ai 0.3 SID Venture Partners VC Seed
AI-driven autopilot for data integration and
management
Mindist 0.3
SID Venture Partners, Alexander Khuda, Ivan
Altsybieiev, Philip Jungen and other
VC Pre-Seed
Audio meditation recording app for mindfulness
teachers.
Liki24 0.3 SID Venture Partners VC Seed
E-commerce platform that provides medicine delivery
services.
Electronic KYC 0.3 Czysta3.VC VC Pre-seed
Identity verification and onboarding process for
customers
Wombats Corp 0.3 Atlassian Ventures VC Pre-seed
Developer of free and paid plugins on the Atlassian
Marketplace
Max Game
Value
0.1 Demium Capital Incubator Grant
Widget that allows bloggers and streamers to monetize
their fan base through live auctions on Twitch, YouTube
and other video platforms
Funding deals of 2022
25
Logo Company
Sum
raised,
US$ m
Investors
Investment
type
Deal class Brief description
Book Box 0.1 7 Wings Angel Grant Book Box is a B2B reading service
ByOwls 0.1 7 Wings Angel Grant
The team develops virtual production and virtual reality
software for the game and film industries.
CASES 0.1 7 Wings Angel Grant
CASES is an EdTech and Social Network for creative
industries.
DrugCards 0.1 7 Wings Angel Grant
DrugCards is a Ukrainian healthtech/pharmatech startup
that collects data about medicines by scanning
worldwide medical literature in 100 languages
Kycaid Limited 0.1 7 Wings Angel Grant
The team helps companies to streamline onboarding
processes and to comply with regulations by providing
automated verification and compliance took.
Obimy 0.1 Goodwater Capital VC Pre-seed Service and application for non-verbal communication;
AcademyOcean 0.1 7 Wings Angel Grant
AcademyOcean is a smart learning management system,
that helps businesses to train their employees, customers,
and partners.
InputSoft 0.1 Techstars Accelerator Seed
SAAS platform to optimize the use of human and
technical resources at the airports
Adler Team Undisclosed Burner VC Pre-Seed iGaming Company
Apme Undisclosed NetSolid VC Seed Full-cycle Development of Mobile Application
Funding deals of 2022
26
Logo Company
Sum
raised,
US$ m
Investors
Investment
type
Deal class Brief description
GetOrder Undisclosed UiPath Angel Angel Integrator of food delivery platforms with POS systems
Helsi Undisclosed Kyivstar Strategic Growth
Appointment service to doctors and storage of medical
data.
Indeema
Software
Undisclosed Vitalii Horovyi Angel Angel Digital transformation company
Mebelok Undisclosed Furniture1.eu Strategic Seed Online furniture retailers
Neurons Lab Undisclosed Roosh Strategic Growth AI-based solutions for SMBs and startups
PeopleForce Undisclosed Pracuj Ventures VC Seed HR software for businesses
Profitner Undisclosed Burner VC Pre-Seed Financial Services
Propertymat Undisclosed Geek Ventures VC Pre-Seed
Propertymate helps homebuyers to find, compare and
buy new constructions.
SeoProfy Undisclosed Burner VC Pre-Seed SEO Agency
Simpler Undisclosed Burner VC Pre-Seed Arbitrage Team
Funding deals of 2022
27
Logo Company
Sum
raised,
US$ m
Investors
Investment
type
Deal class Brief description
SOC Prime Undisclosed hi5 VC Seed Threat Detection Marketplace
Study.ua Undisclosed JKR Investment Group VC Undisclosed Education Platform
Miratech Undisclosed Horizon Capital Strategic Growth Technology services provider
Revenue Grid Undisclosed ICU Ventures Ltd VC Series A
REVENUEGRID develope software that combines data
from a variety of sources and provides AI-driven
analytics to improve corporate sales processes
Competera Undisclosed Geek Ventures VC Pre-Seed AI-based pricing service
4ire Labs Undisclosed ICU Ventures Ltd VC Growth Software development outsourcing + FinTech B2B SaaS
Liki24 Undisclosed TA Ventures, ICLUB VC Series A
E-commerce platform that provides medicine delivery
services.
doc.ua Undisclosed Vesna.Capital VC Seed Medical online hub
Datrics Undisclosed NEAR Protocol Strategic Growth No-code platform developer for analytics
DeckRobot Undisclosed hi5 VC Seed Automates slide creation leveraging AI
Funding deals of 2022
28
Logo Company
Sum
raised,
US$ m
Investors
Investment
type
Deal class Brief description
Boosty Undisclosed hypra VC Pre-Seed World’s biggest blockchain dev shop
SPOKK Undisclosed SID Venture Partners VC Pre-Seed Digital affordable insurance for everyone
Elai.io Undisclosed SID Venture Partners VC Pre-Seed
Text-to-video platform for users to build customized AI
videos with a presenter using only text
Inoxoft Undisclosed InSoft Partners Strategic Growth IT Outsource company based in Lviv
Linkup Studio Undisclosed InSoft Partners Strategic Growth
Provider of consulting services in digital product
development
Lawyerd! Undisclosed Techstars Accelerator Grant Intellectual Property (IP) Management Software
Funding deals of 2022
29
Logo Company
Sum
raised,
US$ m
Investors
Investment
type
Deal class Brief description
DMarket
>50
estimate
Mythical Games Strategic M&A Virtual marketplace
Digitally
Inspired
20-40
estimate
Intellias Strategic M&A
Software engineering company that provides product
and software development services
Augmented
Pixels
20-50
estimate
Qualcomm Strategic M&A
Proprietary simultaneous localization and mapping
technology (SLAM SDK) for robots and flying drones
PULS Software 2 IdeaSoft Strategic M&A Software and game development company
Dynamo
Development
1.0 TechMagic Strategic M&A Custom software development
Homsters Undisclosed Ringier AG Strategic M&A
Homsters develops marketplaces for potential home
buyers.
RESP.app Undisclosed Redis Strategic M&A Easy-to-use GUI to access Redis databases
Rozdoum Undisclosed Adaptavist Strategic M&A Profession software development house
Apostera Undisclosed HARMAN International Strategic M&A
Provider of augmented reality (AR) and mixed reality
(MR) software solutions
Rieltor.ua Undisclosed Lun Strategic M&A
Online platform that allows users to search for real
estate
Volmi Games Undisclosed Virtuos Strategic M&A Game development studio
M&A deals of 2022
30
Logo Company
Sum
raised,
US$ m
Investors
Investment
type
Deal class Brief description
DressX 15.0
Greenfield, Slow Ventures, Warner Music, The
Artemis Fund, Red Dao
VC Series A Digital clothing store
Carmoola 10.0
QED Investors, VentureFriends, InMotion Ventures,
Jaguar Land Rover
VC Series A Car financing app
Kolibrio 2.0
Jump Crypto, Delta Blockchain Fund, Everstake
Capital
VC Seed
Developer of BEV Relay, an on-chain marketplace
connecting node providers, wallets, and dapps with
algorithmic trading bots known as searchers.
My NFT Wars 2.0
Blockchain Cuties Universe, iLogos Game Studios,
Social Discovery Group
VC Series A
Play-Create-Own-based massively multiplayer online
role-playing game (MMORPG)
Deus Robots 1.5 SMRK VC Series A Robot manufacturing startup
Finmap 1.0 SMOK Ventures VC Seed Financial management tool
Awesomic 0.8
Pioneer Fund, Flyer One Ventures, Red Rooster
Ventures
VC Seed Web app that matches designers with customers
Harmix 0.5 Undisclosed Canadian investors VC Seed
Harmix is an intelligent service that automatically selects
right music for your video.
Aspichi 0.5 SMRK VC Pre-seed
Developer of a platform to provide audio/visual
teleportation services based on 360 video and VR
technologies.
Prengi 0.5 SMRK VC Seed SaaS platform for real estate management
Deals of early 2023
31
Logo Company
Sum
raised,
US$ m
Investors
Investment
type
Deal class Brief description
AeroDrone Undisclosed Dmytro Shimkiv Angel Seed Builder Unmanned Aerial Vehicles
GeekPay Undisclosed Sigma Software Labs Accelerator Grant Digital currencies payment tracking platform
Forbytes Undisclosed Insoft Partners VC Seed Custom Software Development Company
Deals of early 2023
32

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DealBook of Ukraine: 2023 edition

  • 1. DealBook of Ukraine 2022 edition Covering tech investment deals in Ukraine since 2014 Growth continues despite Russian invasion
  • 2. Intro AVentures Capital presents The DealBook of Ukraine, 2023 edition The DealBook is our annual overview of the Ukrainian tech investment industry. This edition comprehensively covers the full year 2022 and the deals of 4M 2023 Fight a war with Russia and continue to grow the tech industry internationally? Ukrainian leaders said yes to both questions and surprised the world We would like to cordially thank all the market participants who contributed their insights to the report & the international community that #StandsWithUkraine DealBook of Ukraine Previous editions Other reports on Ukrainian tech Our joint reports with industry partners NEW 2
  • 3. 3 AVentures Capital Founded in 2012, we are a leading tech investment firm with an investment fund and M&A advisory arm focused on global companies that leverage R&D in Ukraine and CEE With over a dozen companies in its portfolio, AVentures Capital backs talented entrepreneurs from Ukraine and CEE to fuel their global expansion in the US and EU markets Director yuliya@aventurescapital.com Yuliya Sychikova Co-founder & managing partner ys@aventurescapital.com Yevgen Sysoyev Business Analyst tetyana.torchylo@aventurescapital. com Tetyana Torchylo Authors of the report 3
  • 4. 4 AVentures Capital investment banking arm IB & M&A Advisory for tech companies in Central Eastern Europe Professional, client-tailored investment banking services for the tech industry: • Investment Banking • M&A strategy development & implementation • Buy-side advisory • Sell-side advisory 4
  • 5. Buy-side advisor to URF fund on acquisition of significant minority stake US$ 5m investment from Sole advisor to Jooble on sale of significant minority stake to M&A buy-side advisor to Ciklum on M&A strategy and roll-on acquisitions in CEE, LatAm, US Buy-side advisor to UAtech fund on acquisition of majority stake Minority investment into a leading pharma vertical software development company 2018 100+ targets pipeline built Sell-side co-advisor to Daxx during the sale to Grid Dynamics Co-Adviser US$ 68m Capital Raise Majority stake sale to a Polish software development company (ex IT Kontrakt) Exited Acquisition by Portfolio company of Exited Minority investment in a leading IT outsourcing company 2019 Exited The Ukrainian Redevelopment Fund Sell-side advisors Buy-side advisors Investments AVentures track record: selected deals Minority investment in a leading IT outsourcing company 2019 Exited Minority investment in a leading IT outsourcing company 2019 Exited Minority investment in a leading IT outsourcing company 2019 Exited Minority investment in a leading IT outsourcing company 2019 Exited Acquired by 2021 Exited All-in-One SaaS Data Protection Platform for mission-critical Apps 2017 Acquired for US$ 85m by 2021 Exited Global medical tourism marketplace 2017 Global leader in connected pets 2015 Buy-side advisor to Horizon Capital on fundraising of US$ 425m round for airSlate 5
  • 6. Inaccuracies and updates Even though we have done our best to provide accurate and complete information, we recognize the limits of such industry reporting. We will be pleased to receive any corrections, notices of inaccuracies or information on deals we may have missed New and updated data will be included in the next publication, improving the level of detail and the quality of the report Please submit corrections, updates and/or suggestions to tetyana.torchylo@aventurescapital.com. Our thanks in advance for your assistance, which will make the next DealBook a better resource for the investment community Copyright policy The content of this report and its summaries are protected by copyright. Individuals and organizations can, without prior authorization and free of charge, copy and publish without limitation short extracts in the form of quotes This report must be clearly indicated as the source with a link to SlideShare or Google Drive page of the report. To copy and republish large extracts, or the full report, or for other editorial cooperation opportunities, please contact Tetyana Torchylo at tetyana.torchylo@aventurescapital.com Distribution opportunities To inquire about the distribution of this report, please contact us at tetyana.torchylo@aventurescapital.com Disclaimer 6
  • 7. Growing tech industry with a decline in new investments Annual investment volume US$ m Source: public data 42 146 80 265 323 542 571 832 218 2014 2015 2016 2017 2018 2019 2020 2021 2022 Grants Growth and Secondary Series D Series C Series B Series A Seed In 2022, the total VC and PE investment volume in Ukrainian tech companies fell by 74% since last year The decline in investments is partially explained by the global economic slowdown. Both the US and the EU have seen a 20-30% slowdown in their own VC investment volumes between 2021-2022 The largest drop in Ukrainian investment volume was in Growth and Secondary deals, which usually constitute the majority of the deal volume. Without it, 2022 has brought more new investments than any other year besides 2021 Most Ukrainian tech companies being global or US market-oriented and capital efficient, continued to grow in revenue after a 74% decline in new investments. Hence, overall, 2022 was a good year of growth 7
  • 8. US$ 218m US$ 571m US$ 832m 4 Ukrainian companies raised 62% of all funding volume in 2022 5 5 % 5 8 % 6 2 % 2020 2021 2022 Airslate (Document Workflow) In July 2022, the company raised US$ 51.5m from G Squared and UiPath Ventures. Airslate’s valuation reached US$ 1.25b, placing the company among unicorns Preply (EdTech marketplace) The company raised US$ 50m in a Series C round led by Owl Ventures. The total volume of investments in Preply reached US$ 100m Spin.ai (cybersecurity) In August 2022, Spin.ai closed a Series A round for US$ 16m from Blueprint Equity, Blu Ventures, and Santa Barbara Venture Partners Fintech Farm (Neobanks) In 2022 and early 2023, Fintech Farm raised US$ 22m from Nordstar, Chrome Capital, and others. Last year Fintech Farm also closed a Seed round of US$ 7.4m, bringing the total volume to almost US$ 30m 8
  • 9. 9 Preply is an online language learning marketplace that connects students to tutors of over 50 languages The company was launched in Ukraine in 2013 by 3 entrepreneurs and immediately started scaling through the CEE region. Later the company shifted towards the US, Western Europe, and South Africa. Now the company is based in Kyiv and Barcelona and employs almost 500 people In July 2022, Preply closed the latest Series C round for US$ 50m. Led by Owl Ventures, the round brought up the total amount of Preply’s investment to over US$ 100m “In the U.S. – its single largest market – it has seen the number of new customers double week over week.” “Ukrainian startup Preply beats the geopolitical odds with $50M to grow its language learning platform” Key numbers and awards Used by 40,000 tutors Tutoring in 50 languages Users from 120 countries 30% of revenue comes from US 9
  • 10. 10 International funds continue to provide majority of early-stage financing 40 31 35 70 49 44 161 242 89 2014 2015 2016 2017 2018 2019 2020 2021 2022 Seed & Grants Series A 1. Despite the war the early-stage investment in Ukrainian companies remains higher than average Source: public data Annual early-stage funding, US$ m 89% Series A 2022 Seed & Grants 2. Foreign capital prevalence 66% 2020 2021 Seed & Grants Share of foreign capital invested 77% Series A 46% Seed & Grants 94% Series A 51% Seed & Grants Ukrainian investors most actively participate in early-stage rounds of up to US$ 1m in Seed and up to US$ 7m in Series A With more capital to commit, foreign investors remain active in Series A and later rounds • In 2022, the most active Ukrainian Seed funds were Flyer One Ventures, SID Venture Partners, Geek Ventures and hypra • New early-stage VC funds, like Burner, Vesna.Capital, hypra, and hi5 ventures continue to emerge • Horizon new $250M fund was raised in 2023, and it would be the largest ever tech fund dedicated to Ukraine, mostly for Series B-C stages 3. Startups have access to abundant early-stage funding Foreign Ukrainian 10
  • 11. 11 Exits as a sign of maturing product ecosystem Target Acquirer Sector Target bio DMarket Mythical Games Virtual marketplace Cross-chain marketplace to trade NFTs and virtual items Augmented Pixels* Qualcomm (NASDAQ: QCOM) Computer Vision Proprietary simultaneous localization and mapping technology (SLAM SDK) for robots and flying drones Homsters Ringier Property marketplace Automated solutions for marketing and sale of new property developments NewOldStamp Blackpearl Group Email Marketing Email signatures marketing platform Resp.App redis Software Easy-to-use GUI to access Redis databases and perform basic bulk operations Globally-successful Ukrainian product companies continue to attract the interest of strategic players, international buy-out funds, and through exit, generate returns for backers DMarket became the largest known exit of 2022. During the last financing round in 2020, the company was valued at US$ 28m. Now, two years later, the valuation of the company is estimated to be over US$50m *Note: Augmented Pixels were acquired in the period between 2021 and 2022 11
  • 12. 12 2021 2018 Raised US$ 100m in Series D round from Iconiq Capital and others Total valuation: >US$ 1.1b 2022 Raised US$51.5m in Series B round from G Squared and others Total valuation: >US$ 1.25b Ukrainian unicorns… Raised US$ 107m in Series D funding from Akkadian Ventures, Mubadala Ventures and others Total valuation: US$ 1.1b Raised US$ 200m in a round led by Baillie Gifford and BlackRock Total valuation: >US$ 13b 2019 BitFury’s unicorn status was confirmed during US$ 80m financing from Korelya Capital in 2018 Total valuation: >US$ 2b Publicly disclosed valuation of >US$ 1b … 12
  • 13. 13 Global Digital Solutions Company …and unicorns to be Product Companies Software development companies Manufacturer of security systems for homes No-code platform to automate workflows and CRM Co-founding company that builds global tech businesses with CEE entrepreneurs Online language learning marketplace that connects students to tutors of over 50 languages Multi-streaming solution to distribute and monetize the live video content Global Digital Solutions Company The companies with US$0.2-1b+ valuation, but publicly undisclosed 13
  • 14. 14 Ukrainian market champions going abroad Poland Bulgaria Israel Kazakhstan Romania UK Czechia Greece Italy USA Countries with presence of MakeUp, Rozetka and monobank (selected) #1 e-commerce platform in Ukraine with 34m visits per month #1 neobank in Ukraine with over 6m users in Ukraine and Poland Uzbekistan #1 cosmetics online retailer with over 340m users in 29 countries Sped up by the war, local winners of e-commerce and neobank niches expand to Europe and Asia with the goal of winning new market geographies outside of Ukraine 14
  • 15. Fund landscape: most active investors Seed – Series A Growth stage Local Foreign Global competition for best deals • Ukrainian startups typically target global market, set up a US or EU legal entity/office, and hence are fundable by international funds • Most local funds support Ukraine- born startups through early-stage capital raise • An increasing number of international funds invest across all stages: from offering world class acceleration programs to leading in growth rounds of Ukrainian startups • The most active local seed fund in 2021-2022: Flyer One Ventures • The largest local fund: Horizon Capital which raised over $250M in a new fund in 2023 15
  • 16. 16 Defense-tech: selected players Source: DOU Builder unmanned aerial vehicles since 2019. In Dec. 2022 two models received exploitation permissions from AFU Developer of ultra-lightweight launch vehicle Developer of reusable airstrike drone with the lowest cost of mission Developer of anti-drone guns and drone detection technology Developer of unmanned robotic systems. Also modernizes vehicles into unmanned ground robotic systems Developer of “Strata 22,” a military training simulation systems for aviation and tanks Developer of Electronic signals intelligence solutions for the security, defense and law enforcement agencies of Ukraine Developer of produces high-tech unmanned aerial vehicles since 2012 Producer of unmanned aerial vehicles (RALLUS & CICONIA) and supporting software since 2014 Developer of unmanned ground vehicles and robotic systems Producer of fixed-wing and multirotor drones at the affordable price Developer of a software system “Kropyva,” which is used by about 90% of artillerymen Developer of netcentric and robotic military capabilities for the security and defense forces Developer of unmanned aviation systems since 2013. One of the models is already used on the battlefield 16
  • 17. 17 Appendix Investors’ portfolio, top product companies and the Deal Table
  • 18. Investors portfolio (1/4) Early-stage investors Selected Ukrainian portfolio companies by funds Exited Exited Exited Exited Exited Exited Exited 18
  • 19. Investors portfolio (2/4) Early-stage investors Selected Ukrainian portfolio companies by funds Exited Exited
  • 20. Investors portfolio (3/4) Early-stage investors Selected Ukrainian portfolio companies by funds 20
  • 21. Investors portfolio (4/4) Growth stage investors Selected Ukrainian portfolio companies by funds 21
  • 22. Product tech export oriented Ukrainian companies Tech holding with fast- growing products operating in developed and emerging markets AI-powered spell-check SaaS company Document management SaaS Multifunctional cryptocurrency exchange Leader in Connected Pets IoT market segment Cloud CRM for sales, marketing and service automation Security and cleaning software for Mac Private language tutoring platform Payment and content distribution platform for digital goods Developer of iOS productivity apps Mobile app for face swap in videos and memes Mac software development company Global provider of secure business collaboration software AI platform for enterprise sales, marketing, and customer success On-demand dine-in technology platform Full-service bitcoin and blockchain technology company Second most visited job aggregator in the world Distribution solution for the live video content Smart security systems manufacturer Mobile based anti- fraud solution 22 Neobanks in emerging markets
  • 23. Logo Company Sum raised, US$ m Investors Investment type Deal class Brief description AirSlate 51.5 G Squared, UiPath Ventures VC Series B A no-code business automation platform Preply 50.0 Owl Ventures, Diligent Capital, Hoxton Ventures, Educapital, Evli Growth Partners, Grupa Pracuj, Swisscom Ventures, Orbit Capital VC Series C Language learning app and e-learning platform Fintech Farm 22.0 Nordstar, Chrome Capital, and others VC Series B Neobanks in emerging markets Spin Technology 16.0 Blueprint Equity, Santa Barbara Venture Partners, Blu Venture Investors VC Series A AI-Powered SaaS Data Protection platform that monitors and back up G Suite, Microsoft 365, and Salesforce data TurnKey Lender 10.0 OTB Ventures VC Series A Global fintech B2B Software-as-a-Service (SaaS) company specializing in AI-powered lending automation solutions Utorg 5.0 VC Dragonfly, TA Ventures, Hypra VC Seed FinTech company that offers а modern fiat to crypto exchange infrastructure Jentis 3.4 Pragmatech Ventures VC Seed Web tracking and data privacy platform Jarvi Games 3.0 Play Ventures, Velo Partners, The Games Fund VC Seed Game development studio Everlend 2.6 GSR, Serum Foundation, Everstake Capital, Portico VC VC Seed Decentralised, meta lending protocol with inbuilt money market Fairo 2.3 Raiffeisen Bank International Strategic Seed Fairo is an app that offers invoicing, tax reporting, and accounting services. Funding deals of 2022 23
  • 24. Logo Company Sum raised, US$ m Investors Investment type Deal class Brief description PromoRepublic 2.3 NetSolid, Flyer One Ventures, Innovestor, Netsolid, Diligent Capital, Steve Johnson, ex CRO Hootsuite, Ari Korhonen, Andreas Mihalovits, Kirill Bigai VC Series A Social media content automation solution for SMEs Della AI 2.0 Pragmatech Ventures VC Seed Contract review platform powered by AI Yope (Salo) 2.0 hi5 Ventures, Horizon Capital, TA Ventures, iClub, Kolos Ventures, Geek Ventures, Vesna.Capital VC Seed Communication Application YouScan 2.0 Kinnevik & VNV Global AB VC Series A AI-powered social media listening and image recognition platform Choice QR 1.7 Presto Ventures, Seedcamp VC Seed SaaS service for DINE IN experience, take away and own delivery. Zibra AI 1.5 SID Venture Partners, Gismart, Angels VC Seed AI-generated 3D assets and visual effects for virtual worlds and experiences Fuelfinance 1.0 Undisclosed VC Seed Cloud-based financial department Remo (Noffice) 1 Fedoriv, others Angel Angel Provider of high-tech working spaces GoSolo 0.9 Maksym Lytvyn, Oleksii Shevchenko Angel Angel Digital Banking and Financial Toolkit enabling entrepreneurs to start and manage their business Peech 0.6 Flyer One Ventures VC Pre-seed Text-to-speech app Funding deals of 2022 24
  • 25. Logo Company Sum raised, US$ m Investors Investment type Deal class Brief description EvaСodes 0.5 Hypra VC Pre-seed Developer of blockchain products and Web3 solutions for startups Party.Space 0.5 Seed Club Ventures Robert Zawiasa, NiMA Asghari, Yurii Monastyrshyn Angel Angel Virtual party platform TRANSENIX 0.5 N1 VC Seed An innovative system for accepting payments in the trading network V-Art 0.4 Geek Ventures VC Pre-seed Platform for displaying, selling and collecting digital art, datuum.ai 0.3 SID Venture Partners VC Seed AI-driven autopilot for data integration and management Mindist 0.3 SID Venture Partners, Alexander Khuda, Ivan Altsybieiev, Philip Jungen and other VC Pre-Seed Audio meditation recording app for mindfulness teachers. Liki24 0.3 SID Venture Partners VC Seed E-commerce platform that provides medicine delivery services. Electronic KYC 0.3 Czysta3.VC VC Pre-seed Identity verification and onboarding process for customers Wombats Corp 0.3 Atlassian Ventures VC Pre-seed Developer of free and paid plugins on the Atlassian Marketplace Max Game Value 0.1 Demium Capital Incubator Grant Widget that allows bloggers and streamers to monetize their fan base through live auctions on Twitch, YouTube and other video platforms Funding deals of 2022 25
  • 26. Logo Company Sum raised, US$ m Investors Investment type Deal class Brief description Book Box 0.1 7 Wings Angel Grant Book Box is a B2B reading service ByOwls 0.1 7 Wings Angel Grant The team develops virtual production and virtual reality software for the game and film industries. CASES 0.1 7 Wings Angel Grant CASES is an EdTech and Social Network for creative industries. DrugCards 0.1 7 Wings Angel Grant DrugCards is a Ukrainian healthtech/pharmatech startup that collects data about medicines by scanning worldwide medical literature in 100 languages Kycaid Limited 0.1 7 Wings Angel Grant The team helps companies to streamline onboarding processes and to comply with regulations by providing automated verification and compliance took. Obimy 0.1 Goodwater Capital VC Pre-seed Service and application for non-verbal communication; AcademyOcean 0.1 7 Wings Angel Grant AcademyOcean is a smart learning management system, that helps businesses to train their employees, customers, and partners. InputSoft 0.1 Techstars Accelerator Seed SAAS platform to optimize the use of human and technical resources at the airports Adler Team Undisclosed Burner VC Pre-Seed iGaming Company Apme Undisclosed NetSolid VC Seed Full-cycle Development of Mobile Application Funding deals of 2022 26
  • 27. Logo Company Sum raised, US$ m Investors Investment type Deal class Brief description GetOrder Undisclosed UiPath Angel Angel Integrator of food delivery platforms with POS systems Helsi Undisclosed Kyivstar Strategic Growth Appointment service to doctors and storage of medical data. Indeema Software Undisclosed Vitalii Horovyi Angel Angel Digital transformation company Mebelok Undisclosed Furniture1.eu Strategic Seed Online furniture retailers Neurons Lab Undisclosed Roosh Strategic Growth AI-based solutions for SMBs and startups PeopleForce Undisclosed Pracuj Ventures VC Seed HR software for businesses Profitner Undisclosed Burner VC Pre-Seed Financial Services Propertymat Undisclosed Geek Ventures VC Pre-Seed Propertymate helps homebuyers to find, compare and buy new constructions. SeoProfy Undisclosed Burner VC Pre-Seed SEO Agency Simpler Undisclosed Burner VC Pre-Seed Arbitrage Team Funding deals of 2022 27
  • 28. Logo Company Sum raised, US$ m Investors Investment type Deal class Brief description SOC Prime Undisclosed hi5 VC Seed Threat Detection Marketplace Study.ua Undisclosed JKR Investment Group VC Undisclosed Education Platform Miratech Undisclosed Horizon Capital Strategic Growth Technology services provider Revenue Grid Undisclosed ICU Ventures Ltd VC Series A REVENUEGRID develope software that combines data from a variety of sources and provides AI-driven analytics to improve corporate sales processes Competera Undisclosed Geek Ventures VC Pre-Seed AI-based pricing service 4ire Labs Undisclosed ICU Ventures Ltd VC Growth Software development outsourcing + FinTech B2B SaaS Liki24 Undisclosed TA Ventures, ICLUB VC Series A E-commerce platform that provides medicine delivery services. doc.ua Undisclosed Vesna.Capital VC Seed Medical online hub Datrics Undisclosed NEAR Protocol Strategic Growth No-code platform developer for analytics DeckRobot Undisclosed hi5 VC Seed Automates slide creation leveraging AI Funding deals of 2022 28
  • 29. Logo Company Sum raised, US$ m Investors Investment type Deal class Brief description Boosty Undisclosed hypra VC Pre-Seed World’s biggest blockchain dev shop SPOKK Undisclosed SID Venture Partners VC Pre-Seed Digital affordable insurance for everyone Elai.io Undisclosed SID Venture Partners VC Pre-Seed Text-to-video platform for users to build customized AI videos with a presenter using only text Inoxoft Undisclosed InSoft Partners Strategic Growth IT Outsource company based in Lviv Linkup Studio Undisclosed InSoft Partners Strategic Growth Provider of consulting services in digital product development Lawyerd! Undisclosed Techstars Accelerator Grant Intellectual Property (IP) Management Software Funding deals of 2022 29
  • 30. Logo Company Sum raised, US$ m Investors Investment type Deal class Brief description DMarket >50 estimate Mythical Games Strategic M&A Virtual marketplace Digitally Inspired 20-40 estimate Intellias Strategic M&A Software engineering company that provides product and software development services Augmented Pixels 20-50 estimate Qualcomm Strategic M&A Proprietary simultaneous localization and mapping technology (SLAM SDK) for robots and flying drones PULS Software 2 IdeaSoft Strategic M&A Software and game development company Dynamo Development 1.0 TechMagic Strategic M&A Custom software development Homsters Undisclosed Ringier AG Strategic M&A Homsters develops marketplaces for potential home buyers. RESP.app Undisclosed Redis Strategic M&A Easy-to-use GUI to access Redis databases Rozdoum Undisclosed Adaptavist Strategic M&A Profession software development house Apostera Undisclosed HARMAN International Strategic M&A Provider of augmented reality (AR) and mixed reality (MR) software solutions Rieltor.ua Undisclosed Lun Strategic M&A Online platform that allows users to search for real estate Volmi Games Undisclosed Virtuos Strategic M&A Game development studio M&A deals of 2022 30
  • 31. Logo Company Sum raised, US$ m Investors Investment type Deal class Brief description DressX 15.0 Greenfield, Slow Ventures, Warner Music, The Artemis Fund, Red Dao VC Series A Digital clothing store Carmoola 10.0 QED Investors, VentureFriends, InMotion Ventures, Jaguar Land Rover VC Series A Car financing app Kolibrio 2.0 Jump Crypto, Delta Blockchain Fund, Everstake Capital VC Seed Developer of BEV Relay, an on-chain marketplace connecting node providers, wallets, and dapps with algorithmic trading bots known as searchers. My NFT Wars 2.0 Blockchain Cuties Universe, iLogos Game Studios, Social Discovery Group VC Series A Play-Create-Own-based massively multiplayer online role-playing game (MMORPG) Deus Robots 1.5 SMRK VC Series A Robot manufacturing startup Finmap 1.0 SMOK Ventures VC Seed Financial management tool Awesomic 0.8 Pioneer Fund, Flyer One Ventures, Red Rooster Ventures VC Seed Web app that matches designers with customers Harmix 0.5 Undisclosed Canadian investors VC Seed Harmix is an intelligent service that automatically selects right music for your video. Aspichi 0.5 SMRK VC Pre-seed Developer of a platform to provide audio/visual teleportation services based on 360 video and VR technologies. Prengi 0.5 SMRK VC Seed SaaS platform for real estate management Deals of early 2023 31
  • 32. Logo Company Sum raised, US$ m Investors Investment type Deal class Brief description AeroDrone Undisclosed Dmytro Shimkiv Angel Seed Builder Unmanned Aerial Vehicles GeekPay Undisclosed Sigma Software Labs Accelerator Grant Digital currencies payment tracking platform Forbytes Undisclosed Insoft Partners VC Seed Custom Software Development Company Deals of early 2023 32