Invest in Ukraine

Support Ukraine

In March 2022, the LPEA made a donation to UNICEF and the Luxembourg Red Cross in response to the humanitarian needs of people affected by the crisis in the Ukraine.

The LPEA reaffirms its commitment by supporting UVCA.

Please find more information below.

"Fund of funds" - Investment program

Purpose of the Fund of Funds

There are no institutional investors like EBRD, IFC, and any others in the current 11 venture funds that are raising their second or third fund.

The purpose of the Fund of Funds is to become the first institutional investor with 30%+ of the first LP commitment, so that GPs have higher chances of raising the remaining 70% of the relevant fund.

Purposed Initial Funding

Due to the fact that the 14 funds that are currently raising, are raising more $1.2B in total (+ Black Rock is raising more than $25B), the initial size of FOF will be around USD 300M.
The initial FOF will kick start what will be a continuous program with the objective to strengthen the PE & VC and the tech ecosystem in Ukraine.
The initial funding will become a catalyst to attract the other institutional and private investors in the Ukrainian ecosystem and could be more than $500M.

Fund management structure

The Fund of funds program would be transparently and professionally managed by an internationally recognized advisory board and the Fund Manager.

An investment committee will consist of prominent LPs that will provide experience and added value to GPs.

Fund of Fund investors themselves will determine the fund management on a transparent and competitive basis.

UVCA management will work closely with the Fund management.

Benefits

Increase of the quantity of startups in Ukraine due to capital inflow in Ukrainian VC ecosystem.
Growing motivation to work in Ukraine, develop innovation locally, provide opportunity for entrepreneurs to realize themselves in Ukraine. Leverage of the engineering and technical talents in Ukraine (Estimated approx. 2500 startups in Ukraine currently can be increased to 5-7k).
Growth of investments to stimulate growth of small and medium enterprises (SME) as a governmental strategic objective – 795 companies will be invested.

Increase of number of job opportunities for young, tech-savvy Ukrainians – 100480
Attraction of foreign professionals – motivation for top-managers, experts to come to Ukraine help create global companies. Also provide motivation for professionals who have left Ukraine to return to realize themselves by creating new, local companies.
Reduction of brain drain from Ukraine – more professionals will work at Ukrainian companies that will increase the tax payments to state budget. Turn brain drain onto brain gain.

About the investment program

The Ukrainian venture capital and private equity association (UVCA) was established in 2014 to improve investment and business climate in Ukraine and strengthen startup ecosystem.

Ukrainian Redevelopment and Recovery Plan – Mission

The FOF, PE & VC investors together with international and Ukrainian entrepreneurs are the key actors in the Ukrainian Redevelopment and Recovery Plan which is estimated as a more than $1 trillion opportunity.

UVCA successfully launched this plan in Davos in 2022.

ABOUT UVCA

If you want to get involved or have any questions please contact:

Stephane Pesch

Dmytro Kuzmenko

CEO from LPEA
✉️ stephane.pesch@lpea.lu

CEO from UVCA
✉️ ceo@uvca.eu