Minister of digital transformation of Ukraine Mykhailo Fedorov, at a meeting with leading American venture capital funds and investment companies, expressed the idea of creating a Fund of funds in Ukraine and emphasized the importance of such an initiative. The idea was presented to the US investment market.
"The state will not only invest in startups but will also direct funds to the world's best venture capital funds to invest in Ukrainian startups. In Ukraine, not only will the number of startups grow, but large strategic investors will also enter. So we will create a better environment for the development startup ecosystem and the Ukrainian IT sector as a whole," said the minister.
The relevant information is contained in the Transformation plan of Ukraine, which the president of Ukraine Volodymyr Zelenskyy presented during his trip to the United States.
The purpose of developing such a document is that the state gives from 10% to 20% of budgeting for the Fund of funds, the rest of the funds are provided by MFOs, and then the Fund of funds invests in other funds, which, in turn, are already in specific companies and projects predominantly focused on the hi-tech and IT sectors.
On the part of the United States, a partnership of venture and institutional funds with the Ukrainian Fund of funds is expected.
Mykhailo Fedorov and his colleagues believe that the launch of the Fund of funds will become one of the sources of capital for the successful launch of investment funds in Ukraine. The total amount of financial support starts at $7 million. The Fund of funds is in the process of being implemented, its launch is scheduled for 2022.