Total investment in Ukrainian IT companies reached $265 million in 2017, which is a 3.3-fold increase from 2016, according to a report of AVentures Capital after the publication of the Dealbook of Ukraine drafted in partnership with the Ukrainian Venture Capital and Private Equity Association (UVCA), Ukrainian business angels network UAngels and Ukraine Digital News association.
According to the study, a total of 44 deals were signed in 2017, and for 90% of the deals were deals with foreign equity funds General Catalyst, IVP, Spark and Almaz Capital) but with participation of Ukrainian investors.
The foreign capital was 96% of total investment, while in 2016 and earlier foreign and local capital’s shares were almost equal.
“The total amount of investments in Ukrainian IT companies over the past five years was $630 million, including with the participation of the world’s leading investors, which indicates the development and sustainability of the industry in the conditions of the country’s economic and political problems,” AVentures Capital Managing Partner and co-author of the Dealbook Yevhen Sysoev said.
According to the study, in 2017, Ukrainian startups attracted investment primarily from venture funds (90%), as well as angels (6%) and crowdfunding platforms (3%).
The largest deals disclosed in 2017 were $110 million of investments in Grammarly (from General Catalyst, IVP and Spark Capital), $30 million in BitFurry (from Credit China Fintech Holdings), $10 million in Petcube (from Almaz Capital, Y Combinator, AVentures Capital, U.Ventures, Digital Future and others) and $7 million in People.ai (from Lightspeed Venture Partners, Index Ventures, Shasta Ventures, Y Combinator and SV Angel).
