Ukrainian venture investment market review (IT sector)

Ukrainian venture investment market review (IT sector)

InVenture presents the review of the Ukrainian venture investment market (IT sector) for 1H 2015

In spite of the ongoing military operations and continuous decrease of national economics in the six-month period of 2015 there was still observed the tendency of growth of venture investments in IT companies and IT product startups.

The sum of venture investments in Ukraine in 1H 2015 exceeded $10 mln, and upon this approximately 25 public deals were closed.

Recently announced deal of Private Equity - Horizon Capital fund entering the capital of the biggest Ukrainian internet shop Rozetka can be considered as one of the most significant deals of 2015. 

Largest deals in the Ukrainian venture capital market (IT sector) in the 1H 2015

Company / Startup Short Brief Sector Deal Value Deal Type Investors Investor Type Capital Origin Date

Largest e-commerce in Ukraine E-commerce - Acquisition

Horizon Capital

PE US July 2015
Preply Internet site for the tutors search Consumer Internet $120k Seed TechStars Berlin Accelerator Berlin July 2015
CourseYard Service for publishers, learning institutions,
сorporate learning and libraries
Online services $150k Seed GrowthUp, Angels sindicate Angel Ukraine July 2015
GVMachines The end-to-end home delivery platform for grocers Consumer Internet $120 Later Stage TechStars Accelerator US July 2015
Kwambio Platform for designers and users of 3D printing Consumer Internet $650k Later Stage TechStars, WannaBiz, 2 Anglels, Imperious Group VC / Accelerator US July 2015
Ajax Systems Security systems and sensors for "smart home". IoT $1m Seed SMRK VC Fund VC Ukraine June 2015 E-commerce and marketplace Consumer Internet $250k Seed - Angel Ukraine May 2015 Energy consumption optimization platform Software - Seed Bas Godska Angel Ukraine May 2015
Coppertino / VOX ( "VOX" music player and storage Mobile $150k Seed BeValue VC Ukraine Apr 2015
AdTena Universal solution for advertisers and Wi-Fi networks owners Consumer Internet $60k Seed WannaBiz, Detonate Ventures, Zorea Ventures VC Ukraine Apr 2015
Clickky Automated platform for the promotion of mobile applications Mobile $2m Seed iTech Capital VC Russia Apr 2015
Augmented Pixels Augmented reality solution for retail, real estate, marketing and media Mobile $1m Seed The Hive VC USA Mar 2015
Tatem Games Leading Ukrainian mobile games devekoper Mobile - Acquisition Innovecs M&A Ukraine Mar 2015
Nravo Nravo True Games Studio Mobile $200k Seed Digital Future VC Ukraine Mar 2015
Newzmate (Traqli) Email platform for media business Traqli Consumer Internet $300k Seed Xevin Investments, Bas Godska VC / Angel Ukraine, Poland Mar 2015
Petcube A home gadget which allows to watch and play with pets using smartphone Consumer Internet $1,1m Seed AVentures Capital, Almaz Capital VC Ukraine, Russia Mar 2015
Settle Mobile service of pre-orders in restaurants Mobile $1.3m Round A SMRK VC Fund VC Ukraine Mar 2015
Kabanchik A marketplace for outsourcing small tasks to others in the neighborhood Consumer Internet - Acquisition Strategic Ukraine Feb 2015 Service booking in restaurants all over Ukraine Consumer Internet $110k Seed - Angel Ukraine Jan 2015
Wishround Service on the collective payment for goods and services via the Internet Consumer Internet $200k Seed BeValue VC Ukraine Feb 2015
Coursmos Micro-learning platform Online services $600k Seed Altera Investment Fund, Imperious Group VC Russia Feb 2015
DelFast Delivery service for stores and customers Consumer Internet $250k Seed Imperious Group VC Russia Feb 2015 Service commissioned artists for the event Consumer Internet $30k Seed Torben Majgaard Angel Ukraine Jan 2015

* Investment database - Largest investment deals in the Ukrainian market in the segment of the venture IT | 2009-2015

The biggest investor in Ukrainian startups during the first six month was SMRK fund. The fund invested $1,3 mln in mobile restaurant preorder service Settle, and then $1 mln in hardware –data transmitters and “smart home” safety systems developer Ajax Systems. 

Dovgopolyi thinks that the next step will be investors`activation. The interest of international investors gradually increases. In exchange, Yanika Merilo gives less promising forecasts for 2015. According to her, on the background of current economic situation and problems in the eastern part of the country, it would be hard to keep the present level of investment, and we should only hope for its growth.

Among the companies, the first place in the amount of investments was taken by Clickky project from Odessa.  In April iTech Capital fund invested $2 mln in this startup. Clickky is engaged in mobile apps promotion and monetized audience attraction, and became one of the best platforms in the whole Eastern Europe.

Almost half as much was attracted by Petcube startup for their robot for pets. In the first quarter of 2015 start-up raised the seed round of $1,1 mln from Almaz Capital and AVentures Capital.Ukrainian start-up of alternate reality Augmented Pixels raised $1 mln from Californian The Hive fund.

As AVentures Capital managing partner Evgeniy Sysoyev has noted, a few Ukrainian companies raised seven-digit sums during the first six month of 2015 from American investors, and then established a new office in USA.

According to Denis Dovgopolyi, the managing partner of GrowthUP Group, the crisis has a positive influence on the activity of technological companies. Currently, crisis in Ukraine aligned with growth of industry on the global market, and entrepreneurs hastened to take advantage of this unique situation. 

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