Summary sheet
The operation involves an equity participation in the Ukraine Phoenix Tech Fund, a venture capital fund aimed at supporting emerging start-ups and local entrepreneurs in Ukraine. The EIB is expected to invest alongside other "Team Europe" members, including Proparco and BpiFrance.
The aim is to provide equity and quasi-equity to high-growth Ukrainian start-ups while supporting local entrepreneurs in a country at war. This operation will help grow Ukraine's emerging venture capital ecosystem and ensure the private sector's resilience during the conflict. It is also in line with the Global Gateway Digital investment priority, the strategic goals established in the Ukraine's National Recovery Plan (boosting the business environment and expanding value-added economic sectors) as well as the Ukrainian Global Innovation Strategy 2030 (creating new opportunities for individuals, businesses, investors and innovators in the country). Additionally, this EIB equity participation will support several sustainable development goals including SDG 1 (No Poverty), SDG 5 (Gender Equality), SDG 8 (Decent Work and Economic Growth) SDG 9 (Industry, Innovation, and Infrastructure), and SDG 10 (Reduced Inequalities). The Fund aims not just to deliver financial returns but also to make a meaningful impact, with about 1,100 jobs expected to be created, half of which will go to women. Notably, the Fund will align with the 2X Challenge, contributing significantly to gender equality.
Through this operation EIB will address a funding gap in the Ukrainian Venture Capital ecosystem and thus support Ukrainian entrepreneurs and the private sector's resilience at a time of war. Thus, this investment would contribute to the strategic priorities established in the Ukraine's National Recovery Plan (boosting the business environment and grow value adding sectors of the economy), the Ukrainian global innovation strategy 2030 (creating new opportunities for Ukrainians, i.a., individuals, businesses, investors and innovators).
This operation is aligned with the Multiannual Indicative Programmes 2021-2027 for Ukraine priorities: fostering resilient, sustainable and integrated economy, and a positive business environment and competitive markets and supporting value-adding and job creating sectors of the economy. In addition, it is also aligned with the Economic and Investment Plan for the Eastern Partnership priorities (i.a., supporting an innovative and competitive economy with a direct support to 100,000 SMEs).
With an anchor investment of EUR 15m, EIB will allow a first close to materialize and catalyze additional public and private investments. In addition, EIB has contributed to the structuring of this proposal (key terms, governance, and Environmental & Social components), ensuring the Fund will be applying market standards, hence increasing its attractiveness to investors.
For the environmental and social aspects, investee companies will be requested to comply with the EIB's Guidelines, as well as with applicable national and EU legislation, as appropriate.
Ukraine Phoenix Tech Fund will be requested to comply with the EIB's Guidelines, as well as with applicable national and EU legislation, as appropriate.