**New Platform Aims to Connect US Investors with Ukrainian Startups**
In the midst of ongoing war in Ukraine, a new platform is emerging as a potential game-changer for connecting American investors with the country’s thriving startup ecosystem. Pravo Venture, founded by Hans Braunfisch and his team, seeks to provide a clear path for individual investors to support Ukrainian startups with capital instead of aid.
**A Problem Solved**
For years, Braunfisch, a former PwC consultant, tried to persuade big institutional investors to put money into Ukraine’s entrepreneurs. However, he couldn’t convince them to take the risk. This sparked his idea for an online investment platform that would help local entrepreneurs and communities with Ukraine as an equal Western partner.
**A Platform in the Making**
After researching and speaking to Ukrainians over 18 months, Braunfisch founded Pravo alongside Ukrainian-American Alex Inshin and Hamburg-based Vlad Sutea. Launched on a tight budget of under $200,000, the platform currently lists two startups: Mosqitter, which makes non-toxic mosquito repellents, and Promin Aerospace, a rocket producer.
**Ukraine’s Startup Ecosystem**
Despite Russia’s full-scale invasion, Ukraine’s startup ecosystem has tripled in five years to become the second most valuable in Central and Eastern Europe at $28 billion. IT startups make up 4.4% of the country’s gross domestic product, with Ukrainian-origin unicorns like artificial intelligence writing tool Grammarly and software development platform Gitlab used globally.
**A Need for Trust**
Convincing investors to put money into Ukraine during the war is no easy feat. Braunfisch says trust is key to winning people over. Working with reputable partners like Eo Incubator and Dealmaker, which handles the whole investment process, helps build that trust.
**Charging Fees? No Way!**
Unlike some crowdfunding websites, Pravo doesn’t take a cut of the investments. Instead, they take a 1% passive equity stake, which also incentivizes them to make sure startups do well. If a startup fails, Pravo would still have accomplished its goal of getting money to Ukrainians.
**A Challenging Environment**
Pravo is working in a challenging environment where risk appetite for early-stage investments has dropped in recent years. However, this means it will be harder for venture capital firms or smaller family offices to invest, opening opportunities for individual investors.
**A Bright Future Ahead?**
Despite the challenges, Pravo’s founders remain optimistic about the platform’s potential to help Ukraine’s startup ecosystem thrive. With fewer investors going after early-stage startups, those willing to take the risk and help Ukraine will see better returns.
As one of the authors notes, “There is so much creativity and ambition here [in Ukraine] that it makes me optimistic for Ukraine’s future.”
**Join the Movement**
To learn more about Pravo Venture and how you can support Ukrainian startups, visit their website at kyivindependent.com.
