AVentures launches $50m Ukraine fund

Ukrainian venture capital firm AVentures has secured commitments from a number of local investors and one US institution for a $50m high-tech VC fund.

AVentures, the Ukrainian venture capital company, has continued the recent spate of fund launches in countries of the former Eastern Bloc with plans to launch a $50m targeting the countries high-tech industry.


The fund, which is being co-sponsored by the National Space Agency of Ukraine and several other government agencies, has already secured commitments from a group of local investors and one unnamed US institutions.


The fund will invest in innovation companies in the high-tech sector in Ukraine, focusing on growing technology-based companies. The fund is hoping to identify businesses that have potential to become market leaders in the region and produce innovative products for Western markets. The average investment will vary between $25,000 and $1m.


“We have had a great start with the support from local investors and we are looking to get commitments from a number of US and European investors,” said AVentures’ President and CEO, Andriy Kolodyuk, in a statement. The firm is now planning to undertake a number of roadshows across the US with further fundraising efforts planned for the UK, Germany and other European countries at the beginning of next year.


AVentures has invested in technology assets in the Ukraine for nine years. AVentures’ current portfolio of venture capital investments comprises five companies across the high-tech sector.


AVentures will be competing with a number of funds hoping to raise capital for investment in Central and Eastern Europe. Last month, SigmaBleyzer, the US fund management company based in Ukraine, said it was planning to launch a $100m private equity fund investing in the expanding South East European economies.


Baring Private Equity Partners, the private equity unit of Dutch bank ING, is also planning to launch a new fund focusing on Central Europe, with a reported target of E250m, while Delta Capital is thought to be close to holding a first close of its debut third-party Russian fund.


In June, a group of European investors, including the European Bank of Research and Development and Greek firm Global Finance launched a private equity fund aimed at investment in small to medium-sized enterprises in Bulgaria and Romania. The Global Bulgaria and Romania Growth Fund’s initial capitalisation will be E16.25m. Fundraising is also underway for a number of firms including Euroventures Hungary.