Ukrainian Venture Capital Association kickstarts $300M Fund of Funds

The Ukrainian Venture Capital and Private Equity Association (UVCA) has officially launched the Ukrainian Fund of Funds (FoF).

According to the head of the UVCA Supervisory Board, Andriy Kolodyuk, it was first designed in 2016, but it took years to harness difficulties and reach a point of readiness.

The Fund of Funds allows investors to deploy capital into local funds through an intermediary, receiving commercial benefits (FoF is not a donor-like program or charity). The initial Ukrainian FoF will kickstart a continuous program to strengthen the PE, VC, and tech ecosystem in Ukraine. 

The expected initial FoF size is $300 million.

The purpose of the Ukrainian FoF is to become the first institutional anchor investor with 30 per cent+ of the first LP commitment so that GPs have higher chances of raising the remaining 70 per cent.

Currently, there are at minimum 16 Ukrainian funds that are actively raising money and are primary targets of FoF:

• AVentures Capital
• ICU Ventures,
• Freedom One VC,
• Digital Future,
• Flashpoint,
• One Way Ventures,
• FfVC,
• Ukrainian Phoenix,
• ZAZ Ventures,
• Network VC,
• 3X Capital,
• Flyer One Ventures,
• SID Venture Partners,
• 1991 Ventures,
• Rada Capital,
• Green Flag Ventures.

Combined, these 16 Ukrainian funds have a total investment opportunity of around $800 million.

Further, around 50 foreign funds are either based and focused or interested in the CEE market.  

The present-day FoF structure is fully independent, without government involvement. In the future, however, a state may invest in FoF on par with the rest of the participants.

The Ukrainian FoF investors will determine the fund management on a transparent and competitive basis with an investment committee of LPs providing experience and added value to GPs. 

The Ukrainian Fund of Funds is led by Manager Ertan Can, a venture capital fund of funds pioneer in Europe, and Founder and Managing Partner of Multiple Capital. 

He has a combined 20 years of experience in asset management, fund of funds, VC, and information technology operating roles. Ertan is also an influential investor, speaker, and lecturer with a degree in International Finance and Law in Frankfurt and London and an MBA from ESCP in Paris. In 2018, he launched Multiple Capital, Europe’s first tech-focused fund of micro VC funds.

Lead image: Eugene.