Read our full report: Business Angels & Reconstructing Ukraine
Can European business angels already play a role in reconstructing Ukraine today?
Can business angels contribute to Ukraine‘s recovery? For answering this question, members of BACB e.V. and Gigahertz Ventures travelled to Ukraine to meet multiple stakeholders of the early-stage startup ecosystem. Our report summarizes valuable key findings of 40+ in-person meetings in Lviv, Kyiv, Kharkiv, and Odesa from May to December 2023.
You can find our key findings below, or subscribe to our newsletter for your own full copy of the report.
Subscribe to our Newsletter to get Early Access to the full report
Key Findings of our Ukraimpulse Report "Business Angels and Reconstructing Ukraine"
We asked ourselves: Can business angels contribute to Ukraine‘s recovery? For answering this question, members of BACB e.V. and Gigahertz Ventures travelled to Ukraine to meet multiple stakeholders of the early-stage startup ecosystem. Our report summarizes valuable key findings of 40+ in-person meetings in Lviv, Kyiv, Kharkiv, and Odesa from May to December 2023. Here's our key findings, as a summary. You can download the full report below.
Subscribe to our Newsletter to get early access to the full report:
Key Findings of our report
"Business Angels and Reconstructing Ukraine"
1. Impact of the war
In 2022, Ukraine suffered a substantial GDP loss, estimated at one-third, but implemented measures to stabilize its economy. The war heavily impacts housing, energy infrastructure, industry, and businesses in general, which need reconstruction in many regions.
2. Economic recovery prospects
The NRC Recovery Plan earmarks $825 billion from 2022 to 2032 for Ukraine‘s recovery, with a focus on sectors like construction, green economy, and health. Integration into Western markets - especially the EU - promises growth. Recent conferences raised significant funds, to contribute to that cause. Ukraine‘s IT sector plays a crucial role in innovation, while defense and GovTech are pivotal for its resurgence.
3. Goodwill & Sustainability
Attracting foreign investment is vital for Ukraine‘s recovery and integration into the European community. Investing in Ukrainian startups not only yields economic benefits but also contributes to social and humanitarian progress, aligning with sustainable development goals.
4. Outsourcing legacy & talents
The Ukrainian IT industry, with its significant contribution to the economy and talent pool, plays a crucial role in resilience and innovation, despite many Ukrainian IT firms moving their headquarters abroad in recent years. The nation boasts a well-educated, English-speaking, and motivated young population, though many talents have left due to martial law, particularly women who are unlikely to return soon.
5. Verticals today
Economic sectors gaining momentum during wartime in Ukraine include defense and dual-use, health, govtech, construction/utilities, logistics, digitalization, green economy, and social services. Ukraine is poised to become a key player in high-tech defense, although ethical concerns exist. Some investors recognize dual-use potential for civilian benefits and are open to investments in defense innovations.
6. Resilience & agility
The Ukrainian business community and startups have responded to the war by relocating operations to Western Ukraine, bolstering infrastructure resilience, adopting agile management measures, implementing social support measures, and fostering strong values-driven corporate cultures, aided by the IT industry and the Ministry of Digital Transformation‘s efforts.
7. FDI today and tomorrow
War and geopolitics have shaped Ukraine‘s FDI, with post-war growth expected, supported by international aid, specific sectors, and the active Ukrainian diaspora‘s role. Following the war, the country might experience an investment hype. Timing matters.
8. Innovation ecosystem
Ukraine‘s innovation journey spans 30 years, starting with incubators and international backing in the 1990s. The 2000s introduced technology parks, but many faded due to funding as well as compliance issues. In the 2010s, private investments and global programs like StartupWeekend thrived, especially in cities with strong software outsourcing industries. Key developments include Unit.City, the Ukrainian Startup Fund (USF), and recent post-2022 initiatives due to the war.
9. VC & Angel Funding
Ukraine‘s startup ecosystem features a few active business angels, mainly from tech, with initiatives starting in 2014. There are few venture funds and accelerators that contribute positively. Most programs and initiatives focus on Kyiv. The western part of Ukraine, and especially Lviv, is experiencing a strong upswing due to the war. Partnerships between Ukrainian and European business angels can help to create a trustful and professional environment for business angels to activate more angel investors locally.
10. Legal System
Ukraine introduced investor-friendly changes in 2019, making it more appealing, but navigating the legal landscape and enforcing decisions can be complex, with established hubs like Poland, Estonia, or Delaware offering a straightforward path for exploration.
Subscribe to our Newsletter and get Early Access to the full report:
Copyright © 2023 Ukraimpulse. All rights reserved
Wir benötigen Ihre Zustimmung zum Laden der Übersetzungen
Wir nutzen einen Drittanbieter-Service, um den Inhalt der Website zu übersetzen, der möglicherweise Daten über Ihre Aktivitäten sammelt. Bitte prüfen Sie die Details und akzeptieren Sie den Dienst, um die Übersetzungen zu sehen.