The European Investment Bank (EIB) has formally approved a €25 million investment in Ukraine’s equity growth fund, with a specific focus on supporting small and medium-sized enterprises (SMEs) in Ukraine and Moldova, particularly in the technology sector.
The EU for Ukraine Fund, managed by the EIB, is specifically structured to address immediate needs and maintain economic stability in Ukraine. To date, it has secured over €400 million in commitments from EU Member States, demonstrating a strong and unwavering commitment to the region.
The approved investment will be directed towards Ukraine’s equity growth fund, Horizon Capital Growth Fund IV (HCGF IV), managed by Horizon Capital. The aim is to raise at least €274 million ($300 million) for growth equity investments, with a primary focus on technology and export-oriented SMEs in Ukraine and Moldova. This will aid in enhancing their market presence and supporting expansion efforts, particularly in sectors such as IT services, e-commerce, and fintech.
Following the successful decision made during the Contributors’ Committee meeting, the EU for Ukraine Fund has given its approval for the €25 million investment in HCGF IV. This fund is an integral part of the wider EU for Ukraine initiative, which seeks to address crucial needs in Ukraine and maintain economic stability. With significant commitments from 18 EU Member States, the fund is striding forward to further expansion through additional contributions.
Chairing the Contributors’ Committee, EIB Vice-President Teresa Czerwińska expressed great satisfaction in the swift deployment of the EU for Ukraine Fund, emphasizing the importance of supporting SMEs and the private sector in sustaining Ukraine’s economy. She also highlighted the potential signaling effect of the investment in the Horizon equity fund, which could attract other private investors.
Lenna Koszarny, founding partner and CEO of Horizon Capital, warmly welcomed the EIB’s support, emphasizing its utmost importance in sustaining economic resilience and creating high-value jobs within Ukraine. She noted that the investment will improve the availability of capital for Ukrainian entrepreneurs, thereby promoting digitalization and innovation.
The investment in the Horizon equity fund represents a significant stride in the EU for Ukraine Fund’s efforts to address Ukraine’s critical infrastructure needs and fortify its macrofinancial stability. Therefore, the backing of donor EU Member States is crucial in extending the availability of capital for Ukrainian SMEs.
In conclusion, the investment by the EIB in Ukraine’s equity growth fund reflects a steadfast commitment to supporting economic stability and growth in Ukraine and Moldova. It underscores the importance of bolstering SMEs and the private sector, particularly in the technology and export-oriented industries. This formal article was originally published on 4th December by the European Investment Bank.
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