A new fund for Ukraine

Perry Boyle ???????? , former head of equities and capital development for Point72, and wearing different hats, is about to close a new fund under new MITS Capital umbrella.

MITS Capital will invest primarily in seed and Series A rounds for Ukrainian defense startups.

"Our mission is to serve as a key catalyst within Ukraine's defense tech ecosystem and to forge robust partnerships with emerging technology companies, facilitating their effective scaling to equip the Armed Forces of Ukraine with the most cutting-edge defense solutions at the earliest opportunity. We invest in the world security."

Venture capital investment in Ukrainian startups has shown resilience despite the challenges posed by the war. In 2024, several venture capital funds remain actively involved, with an increasing focus on supporting tech innovations, especially in areas like artificial intelligence (AI) and defense technologies.

One of the major developments this year is the launch of the Ukrainian Fund of Funds (FoF) by the Ukrainian Venture Capital Association, with an initial size of $300 million. This fund aims to act as a cornerstone investor, committing 30% of capital to stimulate further private investment. The FoF supports a diverse range of VCs, including AVentures Capital, ICU Ventures, for example, and is expected to strengthen Ukraine’s tech ecosystem significantly.

Other prominent VC funds active in Ukraine include u.ventures, which expanded its portfolio with eight Ukrainian startups this year, with a focus on tech sectors, and a growing interest in AI startups, which are currently attracting the most attention from investors.

Though the overall investment environment remains challenging, with a decrease in market activity since 2023, these new initiatives aim to mitigate risk and continue fostering innovation in Ukraine's startup ecosystem.

MITS Capital initiative is a good signals coming from the US, which has a crucial role to play in the current situation of the country which remains intense, with ongoing combat on multiple fronts. Russia forces continuing to carry out significant attacks, using aviation and artillery to support their assaults, targeting non-military infrasturctures and building, killing civilians on a daily basis,

Ukrainian forces are actively defending against these attacks, managing to repel numerous Russian advances, but their efforts in enhancing its self-reliance in defense and reduce dependence on foreign arms supplies must be supported.

The humanitarian situation continues to deteriorate, especially with attacks on energy infrastructure, leading to power cuts and disruptions to essential services like education. Winter is expected to worsen these conditions, with millions affected by energy shortages and ongoing airstrikes targeting urban centers. It's urgent to do something.

MITS plans to hold a first close on its flagship VC vehicle, MITS Lightning Fund, which aims to raise about $50 million.

Boyle was joined by Ukraine-based founding partner Anton Melnyk and Denys Gurak .

I met Anton a while ago, in 2013 if I remember well, while he was working on something that was more the usual startup business you could work on then.

Other times, a different focus. Best of luck to the Team.

Read the article on Pitchbook that had the exclusivity on the information here.

Slava Ukraini!