Summary:
Pravo Venture connects U.S. investors with Ukrainian startups, offering a unique investment opportunity.
Ukraine's startup ecosystem is valued at $28 billion, with IT startups contributing 4.4% to GDP.
The platform lists innovative startups like Mosqitter and Promin Aerospace.
Investments start at $5,000, targeting SEC-accredited U.S. investors.
Pravo takes a 1% equity stake in startups, ensuring alignment with their success.
Hans Braunfisch is on a mission to connect U.S. investors with Ukrainian startups, addressing the lack of a clear investment pathway for individuals interested in supporting Ukraine's burgeoning startup ecosystem. With over 26,000 startups in Ukraine, the potential is vast, yet untapped by foreign individual investors.
The Birth of Pravo Venture
Braunfisch, a former PwC consultant, founded Pravo Venture to streamline foreign investment into Ukrainian startups. The platform acts as a bridge between Ukrainian companies and SEC-accredited U.S. investors, aiming to shift the narrative from Ukraine being a charity case to a land of long-term business opportunities.
Why Ukraine?
Ukraine's startup ecosystem has tripled in value over the past five years, reaching $28 billion, making it the second most valuable in Central and Eastern Europe. Despite the ongoing war, IT startups contribute 4.4% to Ukraine's GDP, with global successes like Grammarly and Gitlab.
How Pravo Works
- For Investors: Open only to SEC-accredited U.S. investors, Pravo targets those willing to invest smaller sums ($5,000 to $15,000) in Ukrainian startups.
- For Startups: Companies must have R&D in Ukraine and be legally domiciled in the U.S. to facilitate dollar transactions.
Current Listings
Pravo currently features two startups:
- Mosqitter: Produces non-toxic mosquito repellents.
- Promin Aerospace: A rocket producer.
Challenges and Opportunities
Investing in wartime Ukraine is not without risks, but Braunfisch emphasizes trust and quality over quantity. Pravo takes a 1% passive equity stake in startups, ensuring alignment with their success without burdening them with fees.
The Bigger Picture
"We want to shift the narrative that Ukraine is a short-term charity case to Ukraine is an opportunity for a much longer-term business and collaborative partnership," says Braunfisch.
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