Ministry of Digital Transformation working on creating 'Fund of Funds' for it projects in Ukraine
The Ministry of Digital Transformation of Ukraine has presented an idea of launching a Fund of Funds in Ukraine for U.S. investors.
According to a report of the Ministry of Digital Transformation in its Telegram channel, Deputy Prime Minister, Minister of Digital Transformation of Ukraine Mykhailo Fedorov, at a meeting with top U.S. venture capital funds and investment companies, expressed the idea of creating a Fund of Funds in Ukraine and invited to join this initiative.
"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. Not only the number of startups will grow in Ukraine, but large strategic investors will also enter the country. So we will create a better environment for development of the startup ecosystem and the Ukrainian IT sector as a whole," the minister said.
The ministry believes that the launch of the Fund of Funds will become one of the key sources of capital for the successful launch of investment funds in Ukraine.
The relevant information is contained in the Plan for the Transformation of Ukraine presented by President Volodymyr Zelensky during his trip to the United States. The text of the document was made public by MP Oleksiy Honcharenko in his Telegram channel.
A government source confirmed to Interfax-Ukraine that the plan had been prepared on the eve of the visit. At the same time, according to the source, some changes could have been made to it directly in the United States.
The purpose of developing the 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 IFIs, and then the Fund of Funds invests in other funds, which, in turn, invest in concrete companies and projects, mainly focused on the hi-tech or IT sectors.
On the part of the United States, participation or partnership of venture and institutional funds with the Ukrainian Fund of Funds is expected.
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.