1400 deals in 10 years: what attracts investors to Ukraine
5 August 12:45
Over the past decade, more than 1,400 investment transactions have taken place in Ukraine, with the total amount of investments amounting to approximately $8.8-9.2 billion. This is evidenced by the results of the study “Ten-year retrospective of the investment landscape of Ukraine” presented by the Ukrainian Venture Capital Association (UVCA).
When investments peaked
The most active year was 2021, when investors invested about $2.7 billion.
At the same time, after Russia’s full-scale invasion in 2022, the market experienced a significant drop. However, analysts emphasize that despite the challenges of the war, the Ukrainian investment market is resilient.
How investments were distributed
According to UVCA, the structure of deals in 2014-2024 looked like this:
- 60-70% – venture capital (VC)
- 10-15% – private equity (PE)
- 20-30% – mergers and acquisitions (M&A)
- 10-15% – other forms (privatization, sale of assets, debt financing)
What else did the study show
1. Technology is the leader in investment attractiveness.
IT, software, fintech, and e-commerce remain the most attractive areas for investors, accounting for 60% of all activity.
2. The impact of the war and new emphasis.
The war has reoriented investors: there is growing interest in Military Tech, green energy, infrastructure, and the agricultural sector.
3. Strengthening the role of Ukrainian players.
Financial and industrial groups, private investors, and local funds have become key drivers, especially in the M&A sector.
4. Privatization as a catalyst.
The sale of state-owned assets stimulates investor attraction and revitalizes the investment market.
5. Support from international institutions.
Financial giants such as the EBRD and IFC remain important donors for Ukrainian companies.
6. Domestic deals outnumber foreign ones in terms of number and volume.
The majority of M&As are between Ukrainian companies, but large amounts are in transactions involving foreign capital.
7. Main areas of M&A.
The most active sectors were TMT (technology, media, telecom), agriculture, industry, and consumer goods.
Examples of the largest deals by sector (2014-2024)
IT and telecom:
- Acquisition of Lifecell by NJJ Capital – $525 million
- Datagroup – Volia merger – $120-200 million
- Rentberry (PropTech): $90 million raised in 2024, $1 billion valuation
- Grammarly: raised more than $200 million in 2021, valued at $13 billion
- GitLab: IPO in 2021, $800 million raised, $8 billion valuation
- Creatio: $200 million in 2024, $1.2 billion valuation
Agricultural sector:
- LNZ Group acquires the Innovation Center for Oilseed Processing
- Kernel has expanded its assets in processing and logistics
- A.G.R. Group, Continental Farmers Group made several acquisitions
- SALIC has invested in MHP agricultural holding
Real estate and construction:
- Dragon Capital invested in business centers, warehouses, shopping malls and M10 industrial park
- Sale of a share in an elite residential complex by UDP
- Privatization of real estate, sale of pledged assets
- New construction of logistics hubs – an example of Alterra Group
Energy:
- DTEK – renewable energy, purchase of regional gas companies
- Nebras Power – acquisition of solar power plants
- OKKO Group – investments in wind energy
- Dragon Capital – investments in energy storage systems
- Activation of Ukrnafta and Naftogaz in gas production
Food industry:
- Privatization of distilleries
- Investments in processing: sugar, oil, flour
- Acquisition of food producers (e.g., Lubnym’yaso by MHP)
- Dragon Capital – investments in Truskavets and Greenleaf
Military technologies:
- KURS orbital: $4 million
- BAVOVNA: $2.7 million
- Swarmer: $2.7 million
- Himera Radios: $0.52 million
- Buntar Aerospace: $1 million
Financial sector:
- Purchase of Idea Bank for $34 million, sale of Unex Bank
- Investments in Treeum, Finmap, Fintech Farm ($32 million)
- Mergers and acquisitions of insurance companies
Geography of investments
Domestic investments
Key regions:
- Kyiv and the region – leader in terms of investment (especially IT, finance, real estate)
- Lviv and Western Ukraine – growing due to business relocation and IT cluster
- Dnipro, Odesa, Kharkiv – traditionally strong, but the war has reduced activity (especially in Kharkiv)
- Other regions – active in agriculture, processing, renewables
Trends:
- Shift to the West – due to the war, capital is moving to the western regions
- Development of regional centers – Lviv, Ivano-Frankivsk, Vinnytsia, Ternopil are gaining importance
Foreign investments
Leading countries:
- USA is the largest investor in the IT sector
- EU countries – Germany, Poland, the Netherlands, the Czech Republic, France, Cyprus
- Great Britain – IT, finance, real estate
- Also: Israel, Canada, Turkey, Saudi Arabia, Asia.
Trends:
- Decline in activity after 2022, but interest remains
- Focus on sustainable sectors – IT, energy, agriculture
- Role of international organizations – EBRD, IFC support key projects
For reference:
The study uses data from AVentures, Capital Times, InVenture, AIN, Forbes, and other analytical sources.
