In the midst of war, Ukraine is rebuilding its future through innovation. Two veterans of the local tech scene, Charles Whitehead and Dominique Piotet, are launching the Ukraine Phoenix Tech Fund, a €50 million fund that promises to transform Kiev into a new European Silicon Valley.
With the support of the European Investment Bank and the French government, the project aims to boost local talent and put Ukrainian startups on the global map.
Launched on September 29, the Ukraine Phoenix Tech Fund (UPTF) is the first international investment fund focusing exclusively on tech companies in Ukraine.
The project, prepared since 2019, is backed by the European Investment Bank (EIB), which is contributing €15 million, making it the first venture capital fund supported by the European reconstruction program EU4U.
„There is a real death valley in Ukraine, where companies do not have access to capital. We will help fill this gap and attract other investors who will see the opportunity. We want to build an ecosystem,” said Dominique Piotet to Kiev Independent.
### Investments for 50 Ukrainian startups
The UPTF fund intends to support 50 technology companies, from early-stage to Series A, with investments starting from €100,000, including follow-on capital for later stages. The first investments are planned by the end of the year, with some companies coming from the Business Incubators network, a program founded by Whitehead in Kiev.
UPTF will finance startups in all technological fields – from renewable energy to artificial intelligence – except for those in the defense sector, which were not targeted by investors at the project’s launch almost five years ago.
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### Objective: retaining talent and integrating veterans
Whitehead and Piotet aim for an extensive social and economic impact. They want the fund to help Ukraine retain its IT specialists and create opportunities for female entrepreneurs, war-displaced individuals, and veterans.
„There are others looking towards Ukraine, but they probably won’t focus 100% of their efforts here. If we can make them pay more attention to Ukraine because we’ve built a system, then we’ve achieved our goal,” Whitehead stated.
### „Ukraine has the potential of Silicon Valley”
Asked why they are launching the fund in the midst of war, Whitehead explains that the idea is long-term. „Ukraine produces more technology graduates than almost any other European country. But it was a capital desert, and exceptional teams couldn’t get funded,” he elaborated.
„Today, there is global attention on Ukraine, and not just humanitarian. There are people who understand that there is real economic value here.”
Whitehead compares Kiev to Silicon Valley in its early days: „I used to go there when the tallest building had only six floors. If you look at Kiev today, even during the war, it has all the elements of a Silicon Valley.”
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### A bridge between Ukraine and Europe
For Piotet, the connection with Europe is crucial. „Both for us and for the French government supporting us, it is important to anchor this fund in Europe. The idea is to build bridges between Ukraine and the EU,” he affirmed.
In addition to the EIB, the project is supported by the French public investment bank Bpifrance and the development bank Proparco. „Unlike the US, Europe completely missed out on Ukraine in the technology field. It was just an outsourcing area for a few companies, nothing more,” Piotet emphasized.
### A different investment model
UPTF sets itself apart from traditional funds in its approach. „We are the only ones investing exclusively in Ukraine. Others claim to invest in the region, but in reality, they only have one or two investments here,” Piotet stated.
„We are not just a fund; we are ecosystem builders,” he explained.
„We want larger players than us to enter the market. If the tide rises, all boats will rise, and we want to be the ones encouraging the tide to come,” added Whitehead.
G.P.