The budget for 2022, which was already adopted by parliament on December 2, provides funds for projects aimed at developing the digital economy, particularly the creation of the Fund of Funds. It is planned to allocate $11 million for the fund.
The concept of the fund's project has not yet been completed. The Ministry of digital infrastructure handles it in conjunction with the Ministry of economy, the president's office, and Deputies.
The purpose of the foundation
As noted in the Ministry of digital transformation, the main idea is for the state to invest not just in startups but to give funds to investment funds, which, according to their own strategies, will then invest them in Ukrainian startups. It is expected that the profit received from the Fund of Funds will be returned to the budget with a certain percentage of profitability. In addition to attracting foreign investment to Ukraine, the Fund of Funds will also act as one of the key sources of capital for the successful launch of investment funds in Ukraine.
The Ministry also calculated that creating such a fund would affect the economy in the following way: with state investments in the amount of $11.5 million, the ecosystem will receive $46 million.
Startup funds in Ukraine
Today, the Ukrainian startup fund (USF) already operates in Ukraine. It distributes many grants in the territory of Ukraine every year. Qualified startups receive $25.000 - $50.000, depending on various factors. USF has allocated several million dollars to support startups in two years of operation.
The idea of the fund itself is not new; it was first discussed in Ukraine under the previous president. However, the private initiative did not find support from the state at that time.