Development of financial schemes and infrastructure to support innovation in Ukraine The European...

Development of financial schemes and infrastructure to support innovation in Ukraine

The European Union’s Neighbourhood Programme


Seed investments in Ukraine 2005-2010

A project implemented by Louis Berger SAS in consortium with Innova Europe, Aria Consult and Finlombarda

This project is funded bythe European Union


Seed Fund in SME Finance environment

SME Development

Stage:

SME Development

Stage:

High Risk Low High Risk Low

• Microfinance• Round Table

of Banks/SMEs

• Microfinance• Round Table

of Banks/SMEs• SME Loan

Guarantees• SME Loan

Guarantees

Risk Capital Phase(Component 1)

Loan Finance Phase(Component 3)

• Cross-Investments• Cross-Investments

• Seed Finance• Business Angels• Seed Finance• Business Angels

Venture Finance Phase(Component 2)

Supporting Policies Financial Instruments

Supporting Policies Financial Instruments

• High Growth Innovative SME Scheme (GIF)

• High Growth Innovative SME Scheme (GIF)

Public Stock Markets: IPO’s & VC

exits

Public Stock Markets: IPO’s & VC

exits

Bank Loans & GuaranteesBank Loans & Guarantees

Formal Venture Capital FundsFormal Venture Capital Funds

Seed & Early Stage VCFsSeed & Early Stage VCFs

Business AngelsBusiness Angels

Entrepreneurs, Family + Friends Entrepreneurs, Family + Friends

“Valley of Death”

ProfitabilityProfitability

Pre-seed Seed Start-up phase Emerging growthPre-seed Seed Start-up phase Emerging growth Gra

phic

s: L

ouis

Berg

er /

DG E

nter

prise


Mapping of:

Seed Funds

Business Angels

Supporting Infrastructure

10/11/2010 Louis Berger SAS Consortium


Seed and venture investments in Ukraine 2005-2010

1. Kvazar-Micro (KM-Core)

2. AVentures Capital Fund

3. TechInvest

4. ТехноМост (TechnoBridge)

5. ABRT Venture Fund

6. Ukrainian Vivex Invest LLC

7. eVenture Capital Partners

8. AddVenture

9. IDE Group

10. P&S Asset Management Ukraine

TOP-10 Seed/Venture

Financing in UA


Kvazar-Micro, 1990/KM Core, 2010

www.kmcore.com

Evgeni Utkin, President

Info-communicative technologies, Microelectronics,Ecological and energy-saving technologies

KM Techno, КМ Ware – software for agriculture, health protection, municipal services, the building industry, transport and othersDe Novo - IT services and solutions for banks and companies, datacentre servicesInfogin - Internet solutions with the help of mobile phonesCeLight - research, development and sales of advanced opto-electronic sub-systems, algorithms and architectures to deliver cutting edge products and services for its system partners and end-customers. The Institute of the Newest Technologies in Education (INTE) - modern facilities for learning about automation and the introduction of interactive teaching methodsNSOF Connect - mobile commerce and business intelligence platform



IT, Telecom, Internet, clean tech, real estate companies – total more than $1bln

Unitrade -national consumer electronics retail chain City.com - national chain of consumer electronics hypermarkets Melofon - retail chain of mobile electronics Universal Telecom - fixed-line telecom operator United Software Corporation - IT company Softpress - publishing house Inetgrid - clean energy joint venture companyTrend, New City Development - commercial real estate

AVentures Capital Fund, 1994

http://www.aventurescapital.com

Andriy Kolodyuk, founder and

Chairman of the board



Serhiy Loboyko, founder

and Chairman of the board

TechInvest , 2004

http://techinvest.com.ua

APower Cap Technologies- nanotechnology company,main project of ROSNANO in Ukraine

Security of informational telecommunications systems-developing and testing IT security soft/hardware tools

Financial Algorithmics - decision support tools for traders on FOREX

High Tech, IT, Telecom, Internet companies



TechnoBridge, 2006

ІТ & Telecommunications

- Investments amount: no disclosure

Maxim Shkolnik Viewdle - Facial recognition startup

IdeasPlanet - domain, web-sites services

Address.UA - property search tool

www.ideasplanet.org



Software, internet and technology

ABRT Venture Fund

http://abrtfund.com

Acronis - data storage management products

InvisibleCRM - a complete natural workspace

Drimmi - games for social networks

Quintura.com - search engine that helps visually find

web pages, images and video content.

Veeam Software - virtual infrastructure management, innovative systems management software

Ratmir Timashev, President and CEO



IT, Internet, new technologies, payments, distribution systems and media


Ukrainian Vivex Invest LLC, 2007

http://www.vivex.pl

Adam Wojacki, founder & CEO

Global Projects - Online projects developmentSeepla.net - Tourism portal Thousands online trips and descriptions with picturesMapia.com.ua - Ukrainian map business directories Access to a unique database of information about business in

Kiev. Kopeikoff - fascinating Internet-auction platform- A person, whose bid will be the last during a specified

auction time, has the right to buy the product for a price significantly lower than market price.


Myfab.com- e-commerce on demand

Kauf.da - online local circulars

Experteer.de – recruitment platform

More.tv - digital TV solutions

Sapato.ru – on-line shoe store

Address.ua - Ukrainian realty platform

BV Capital and eVenture Capital Partners, 1995

Internet focused early stage venture capital firm

www.evcpartners.com

General Partners:Thomas Gieselmann

Andreas HaugChristian LeyboldMathias Schilling



Employs over 150 people in Edinburgh, London,

Dnepropetrovsk and Zaporizhzhya

Sravni.com - online comparison shopping business

Trud.ua - job and personnel search

GDE.ua fast tool for comparison selection of bank products

Investing fund IDE Capital, 2006

Bill Dobbie,

CEO

http://www.idecapital.co.uk

Digital communities, media services, telecoms and e-tail businesses



Wi2Geo interactive hybrid navigation system that combines WiFi, WiMax, GPS and GSM methods

Roomix.ru innovative home goods catalogue with a built-in online 3D room planner. You can create your own virtual room

Toolwi.com innovation widget platform. You can create a widget (or Muzicon) to host on your blog or social network

Kinokrug.ru combines professional social network and a bunch of useful services

AddVenture, 2008

http://www.addventure.to

IT start-ups



P&S CAPITAL , 2006

Industria Komunikatsiy

- local marketing and advertising holding:

Kaffeine Communications – full-service advertising

IIII Rim – PR agency

Kensu Interactive – web and multimedia agency

Lead9 – mobile and interactive marketing agency

Krugom Media – media agencyhttp://www.p-s.com/ua/equity

Dean MikoličFounder,

Managing Director

Marketing, PR, advertising, Internet



Intends to raise $20mln to a portfolio of 25 projects:

10 projects at an early stage with $50th - $500th and

15 projects at level «Series-A» at $500th - $2mln

TA Venture Fund, 2010

Victoria Tigipko,Director*

*General Partner at GrowthUP Incubator, organizer IDCEE 2010

B2C Internet startups in Ukraine and Eastern Europe

http://www.taventure.com



Donors Supporting Programs

World Bank infoDev program

“Soros Fund” to Ukraine (Anti-crisis Humanitarian Program for CEE countries SMEs): up to $25mln

USAID/LINC - Local Investment and National Competitiveness Project Investment Project Search

SeedCamp – trainings and micro-financing for start-ups

www.irf.ua

http://linc.com.ua

http://seedcamp.com

www.infodev.org



The Association of Private Investors of Ukraine, Kiev

Member of

European Business Angel Network (EBAN)

http://www.uaban.org

Igor Vlasyuk, Founder

• Monthly meetings of Investors Club

• Trainings for members

• Catalogues of Investment proposals

• Abroad missions

• Legislation lobbying

Serhiy Desyak, UABAN President,

Director of Euroconsulting



Ukrainian Association of Private high-tech investors, Lviv

Help to business angels

- Information about investment opportunities

- Information about venture capital market

- Support in searching and negotiating

Rostyslav Chayka, founder, business angel,

founder of Lviv Startup Club.

http://htban.org



Incubators

Center for Innovations Development, Kyivest. in 1998 by the International Management Institute

Kharkov TechnologiesCenter of Small Business Developmenthttp://www.kt.kharkov.ua

Incubator «GrowthUP», Kievhttp://www.growthup.com

Incubator “Startuplab”, Kharkiv,http://startuplab.com.ua

Incubator “LvivStartupClab” http://startup.lviv.ua



Seed Forum in Ukraine - since 2006

+ the Ukrainian Chamber of Commerce and Industry

www.ucci.org.ua

Olena Podoleva, Vice-President

Steinar Korsmo, President & CEO

http://www.seedforum.org



Start-ups Contests

http://www.ukrinnovation.com

“Innovative breakthrough” 2009-2010…Lviv, Kyiv, Kherson, Kharkiv, Dnipropetrovsk…

Alexander Kardakov

http://idcee.eu

IDCEE 2010 in Kyiv

150 applications 3 best startups

IDCEE main stage on October 29



- Potential role of Government in Development of Seed Investments ?

1. Support: Fly and Scale, Moral, PR, Power, Taxes, Co-financing

2. Law to give to state Academy institutions power to deal with its Intellectual Property Rights (as Bayh-Dole Act)

3. To allow joint ventures between state scientific institutions and private companies

4. To establish Fund of Funds to invest up to 49% to Venture Capital funds in Ukraine

5. To develop corporate governance legislation, design new instruments, as “restricted stock”, “tag along”, “drag along”, ”reverse vesting” and others



Many thanks for your attention!

Our team is committed to a high level of co-operation and we looking forward to deliver jointly on Ukraine’s expectations on

innovation support!

A project implemented by Louis Berger SAS in consortium with Innova

Europe, Aria Consult and Finlombarda


Development of financial schemes and infrastructure to support innovation in Ukraine The European...

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