For a year and a half of its existence, the Ukrainian Startup Fund has financed about 200 business projects to the tune of almost $5 million.
"The Ukrainian Startup Fund is a comprehensive approach to the development of startup ecosystem. These are funds for the implementation of promising projects, mentorship, acceleration programs, and the professional IT community. For a year and a half of the Fund's activity, more than 3,000 applications have been processed, and almost 200 startups received funding to the tune of almost $5 million. Nine well-known Ukrainian and international accelerators have been accredited to help our startups make a great product," Deputy Minister of Digital Transformation of Ukraine for IT Development Oleksandr Bornyakov said, the Ministry’s press service informs.
According to Bornyakov, in order for startups to be able to actively develop in Ukraine and attract investment, the Ministry of Digital Transformation is creating a special legal and tax regime "Diia City". Startups that meet the following criteria will be able to become residents of "Diia City": implementation of activities defined by the legislation on "Diia City"; 90% of income must proceed from these activities; registered not earlier than 24 months before the application date; annual income does not exceed UAH 7 million. There will also be no admission criteria on the number of employees and average salary introduced for current players.
"We want more funds from international investors to come to Ukraine, so we need to show more details about the Ukrainian startup market and promote Ukrainian companies for potential partners, customers, and funds," Bornyakov said.
As reported, the Ukrainian Startup Fund is a state fund established on the initiative of the Cabinet of Ministers. The fund started accepting grant applications on December 2, 2020. The mission of the fund is to promote the creation and development of pre-seed and seed technology startups to increase their global competitiveness. Candidates for grants are selected on a competitive basis by a board of independent investment experts.