The volume of investments in the Ukrainian technology sector in 2024 increased by 120% compared to the figure in 2023, according to the annual review of the Ukrainian technology investment ecosystem Dealbook of Ukraine prepared by the investment company AVentures Capital.

According to the information provided in the review, after a sharp drop from $832 million in investments in the technology sector in 2021 to $236 million in 2022, in 2023 the volume of investments dropped to $209 million. The recovery in 2024 to $462 million indicates that the Ukrainian technology industry is halfway to restoring pre-war indicators, the review says.

There are many companies that have the potential to attract significant investments in 2025. The defense technology sector is experiencing the fastest growth, driven by a surge in investments, new startups, specialized acceleration programs and venture funds focused on miltech, says the Dealbook of Ukraine text.

In contrast, in 2024, as in the previous year, the largest amount of investments, $223 million or 48% of the total investment volume, were attracted at the late stages. The overall picture may be distorted by a large deal by the developer of the no-code platform for business process automation and the CRM company Creatio. In June 2024, it raised $200 million from a consortium of investors including Sapphire Ventures, StepStone Group and Volition Capital – 90% of all Series C investments (made at later stages), the report authors noted.

Investments in early-stage projects accounted for 32% of the total $147 million in 2024, compared to 39% of total investments in the technology sector in 2022 and 2023.

The top five investment deals of 2024 in the review, in addition to the deal with Creatio, include a deal with the British fintech company Carmoola, founded in 2021, which in January 2024 raised $19.2 million from QED Investors, VentureFriends and InMotion Ventures, a platform that simplifies the home buying process Jome, which raised $9.8 million from nine venture funds, the financial management application IN1, which integrates fiat currency and cryptocurrencies within a single platform. In September 2024, IN1 received $6 million in funding from Brainstorm Ventures. In addition, the Fintech Farm initiative, which creates neobanks in developing countries in partnership with traditional banks and in 2024 raised $5 million from the Bank of Georgia.

The largest amount of grants to miltech companies in 2024 was issued by the Brave1 fund - $40 million, which aimed to increase investments in 2025 to $100 million. The most funding was attracted by the miltech companies Osavul, Swarmer and Bavovna.AI (an average of $2.8 million), the report says.

The largest M&A deal of 2024, according to Dealbook, was the $1.5 billion deal for the acquisition of the Datagroup-Volia provider and the third largest mobile operator lifecell by NJJ Holding of French businessman Xavier Niel.

The largest deal for the acquisition of a minority stake was the deal with Work.ua, valued at $7.7 million. The buyers are Grupa Pracuj, KEUS, KUPR, Artur Mikhno, Roman Prokofyev, Yevhen Sobakariov.

Among the M&A deals expected in 2025, the largest mobile operator Kyivstar is said to have acquired the online taxi service Uklon. The deal is estimated to be worth $80 million. Also, the acquisition of the YouTeam online platform that allows companies to quickly and efficiently hire remote software developers by Toptal. The acquisition of a developer of artificial intelligence chatbots for business BotsCrew by CourtAvenue and the acquisition of the Estonian company Parcelsea specializing in mailboxes for private homes and communities by Jetbeep.