21 October 2024

Business Angels Return to Ukraine – Insights from a War-Torn Country

The following article is a summary of an article published by the daily newspaper Berliner Morgenpost on October 14, 2024. You can find the link to the digital edition (paywall) here ↗.

Berlin/Kyiv. Investors from Berlin and Dresden once again traveled through Ukraine to support start-ups. They attended the IT Arena tech conference in Lviv and held discussions with founders, government officials, and politicians in Kyiv, Odesa, and Mykolaiv.

"We want to support start-ups with funding and expertise," explains Stefan Schandera from the Ukraimpulse initiative, which aims to connect German and Ukrainian investors. Their goal is not only to provide capital but also to facilitate market entry into Germany.

Despite the war, the investors are not hesitant to travel through the country. Apps like "Air Alarm Ukraine" accompany them as they experience stark contrasts firsthand: sunny beaches by day, drone attacks by night. In cities like Lviv, the war is hardly visible during the day, while in other regions, destroyed tanks, barricades, and wounded people can be seen in the streets.

Source: Berliner Morgenpost (print version), 14.10.2024

Economy and Innovation Despite the War

In Mykolaiv, the Business Angels, together with the Mykolaiv Water Hub, organize workshops on early-stage financing at various universities, including the Admiral Makarov University, the National Agrarian University, and the Petro Mohyla Black Sea National University. They visit shipyards, engage with start-ups, and serve as jury members at a pitching event hosted by the U-Nation accelerator in Odesa to evaluate new business ideas.

Schandera emphasizes that Ukraine's software development sector is often more advanced than Germany’s, but knowledge about commercialization remains a challenge. The investors aim to provide support in this area.

Ukraimpulse / ua.ventures together with Mykolaiv

Municipality (Mayor Oleksandr Senkevych, 4th from left), Mykolaiv Water Hub,

Berlin city administration representatives

Source: Mykolaiv city administration

A new challenge that became more evident on this trip compared to 2022 and 2023 is the shortage of skilled labor. Many professionals have been lost due to the war, requiring companies to increasingly rely on retirees and women to fill the gaps—posing an additional hurdle for businesses.

Funding opportunities remain available, both from local and international investors. In Mykolaiv, the delegation also meets Berlin CDU politician Eva Majewski, who is working on establishing a city partnership between Berlin and Mykolaiv.

Investment with Clear Boundaries

Currently, the Business Angels see the greatest potential in medical technology, agriculture, and microelectronics. However, military technology for use in weapons systems remains strictly off-limits for these investors. Despite the challenges, the investors believe in Ukraine's innovative strength and remain committed to supporting its development.

Ukraimpulse / ua.ventures Investment readiness

(by Sebastian Schwenke; ua.ventures / BACB)

workshop at U-Nation accelerator, Odesa

Source: ua.ventures

This article is a summary of an article about our Autumn 2024 mission to Ukraine, published by the daily newspaper Berliner Morgenpost on October 14, 2024. You can find the link to the digital edition (paywall) here.

Thanks to the kindness and care of our friends and hosts in Lviv, Kyiv, Odesa, and Mykolaiv, we felt safe and truly welcome every step of the way. Thank you very much!