This document provides an overview of the Ukrainian venture capital and startup scene in 2016. It finds that there were 87 deals totaling $87 million invested in 2016, a growth over previous years. The average seed stage deal size was $525k. Key sectors of interest for investors included AI, Big Data, delivery, agrotech, and fintech. Ukraine has a growing startup scene with over 3000 startups identified and strengths in IT engineering talent and lower costs compared to other countries. Barriers identified included a lack of entrepreneurial experience and focus on technical rather than business aspects.

1. Getting to know the
Ukrainian Venture Capital
Market and the Startup
Scene

2. WannaBiz
Founded in 2012 as a business
incubator
Transformed into a venture
seed fund in 2015
M
E
M
B
E
R

3. Industry snapshot 2016
● 87 deals (32% growth in number 2016 vs 2015)
● $87 mln total capital invested (125% up over 2014,
33% down over 2015)
● $525k average deal size at seed stage (31% growth
in average 2016 vs 2015)
● 8 exits by VC and PE funds
UkrainianVentureCapitalandPrivateEquity
Overview2016

4. UkrainianVentureCapitalandPrivateEquity
Overview2016
Investors overview
● 5 incubators and accelerators
● 17 venture capital funds
● 8 private equity funds
● 1 corporate fund

5. (Average)
● Portfolio: 20
● Ticket: $50K -
10M
● Seed stage
● International
presence
Investors overview
UkrainianVentureCapitalandPrivateEquity
Overview2016

6. UAngeldealflowoverview2016
Assessment of Ukrainian startups by angels
Weaknesses
● Lack of entrepreneurial
experience
● Leg behind trends
● Raising investments on concept
stage
● Lack of breakthrough and
unique ideas
● Lifestyle entrepreneurship
● Focus on technical aspects
instead of potential capabilities
Strengths
● High IT potential
● Excellent IT engineers
● Low valuation of projects
● No competition for the objects
of investment with other angels

7. ● Most promising: AI,
BigData, Delivery, Agro,
Fintech
● Completed investments:
AdTech & Social Media,
marketplace & e-
commerce
● Less alluring: Fashion &
Lifestyle
Ukrainianseedinvestmentmarketoverview2015-
2016
Angels spheres of
interest 2015-2016

9. UAngeldealflowoverview2016
Ukraine: top-5 verticals where
startups have successful
achievements
● PaaS
● Marketplace
● IoT/Hardware
● Mobile
● E-commerce
UAngel dealflow overview 2016

10. Ukraine - international rankings
UkrainianVentureCapitalandPrivateEquity
Overview2016
Kiev is among Top 10
least expensive cities
for living. It helps to
reduce operation costs
for companies based in
Ukraine.
100+ multinational
R&D centers are based
in Ukraine, including
Samsung, Huawei,
Siemens, Playtech etc.

11. Startup scene
● Total: 3000+
by UVCA,
748 by
Mapped in
UA
● 2015-2016 by
UAngel:
about 300,
90 growing

12. Co-working spaces
Infrastructure
Incubators/accelerators
Corporate incub-s/acc-s
University initiatives

13. Alexandra Balkova
a.balkova@wannabiz.com.ua
Thank you!