As US help to Ukraine diminishes a new platform liases American investors with Ukrainian startups
At a time when the US financial support for Ukraine becomes more fragile, and Congress rhetoric is inclined to isolationism, a new approach seeks to reopen the way of solidarity-not through donations, but through investments.
Hans Braunfisch, former consultant at PricewaterhouseCoopers and a former Taskforce co-coordinator for Ukraine, launches a large ambition platform: Pravo Venture, a digital space meant to connect US investors with Ukrainian startups, writes Kyiv Independent. Not philanthropy, but economic partnership-a paradigm change in a landscape dominated by uncertainties.
“We want to move the emphasis from Ukraine-Victim to Ukraine-Economic Parter”, explains Braunfisch in an interview with Kyiv Independent.
Due to lack of infrastructure, an idea
After trying without success to convince institutional investors to bet on the Ukrainian entrepreneurship, Braunfisch realized that there is, in fact, no clear way for individual American investors to contribute financially. No Ukrainian company is listed on American scholarships, and bureaucracy discourages even the best intentions.
This is how the idea of a dedicated platform appeared – a “neutral land” in which Ukrainian entrepreneurs and US -accredited investors (those with income of over $ 200,000/year or a heritage of at least $ 1) can collaborate.
The platform, launched in June with a modest budget below $ 200,000, bears a symbolic resonance name: “Pravo”, which in Ukrainian means “rights”. For now, he hosts only two startups-Mosqitter, a manufacturer of non-toxic solutions against mosquitoes, and Promin Aerospace, a micro-root developer.
- Increasing ecosystem, in a country in war
Paradoxically, despite the Russian invasion, the Ecosystem of Ukraine starts has grown three times in the last five years. With an estimated value of $ 28 billion, the Tech sector contributes 4.4% to the national GDP. Giants like Grammarly and Gitlab, founded by Ukrainians, are now global players.
However, foreign direct investments remain rare. Images with bombarded cities and prolonged uncertainty inhibited Western capital. And internal resources are often redirected to the defense effort.
“We see on the screens only the air attacks, but not the people who build products in Dnipro, Kyiv or Lviv“Says Braunfisch.
Pravo, a bridge for small investors
The platform aims at American investors interested in contributing small amounts-5,000 or $ 15,000-in carefully selected startups. Objective: Attracting 1,000 such investors in the next year and a half.
Ukraine partners are carefully chosen. Listed start-ups must have graduated Eo Business Incubators, a recognized accelerator for its Western standards. Also, companies must have the legal headquarters in the US to allow financing in dollars, which reduces the risks of transactions.
“Ukrainian start-ups are hungry for liquidity. They need funds to keep their teams, develop products and resist in a hostile context,” warns Braunfisch.
The Pravo model is built to promote startups: it does not charge cash commissions, but only a passive 1%stake, which motivates the team to support the long-term companies.
Beyond charity, an act of economic courage
Convinced that early investments in startups are the key to the “next grammarly”, Braunfisch acknowledges that the Pravo mission will not be easy. Risk investors have become more cautious, and Ukraine is far from a stable environment.
However, he relies on a niche of Americans who want to help Ukraine other than through donations or tax contributions.
“OnIn my friends in Arkansas who want to support Ukraine, there is no other way. Pravo is the only real bridge between their capital and Ukrainian innovation. ”
