Interview with Andriy Zinchuk: How Techosystem Venture Investments Committee is shaping the Ukrainian venture capital market

Despite the war, the Ukrainian startup landscape perseveres. Innovations based on defense technologies, artificial intelligence, and others — are not just surviving but are forming a new economic powerhouse for the country. But even the best ideas don't take off without investment fuel. How do startups raise capital in a highly uncertain environment? How to convince a foreign investor that investing in Ukrainian projects is not a risk but a strategic decision?
We talked about this with Andriy Zinchuk, a Ukrainian entrepreneur, investor, active member of the venture capital community, and startup consultant. On May 21, 2024, he was elected to lead the Techosystem Venture Investments Committee. Andriy is the founder and managing partner of ZAS Group, which includes ZAS Ventures, ZAS Angels, and ZAS STK. In this conversation, he shared his vision of the challenges, trends, and real steps that are already changing the Ukrainian venture capital market.

What role does the Techosystem Venture Investments Committee play in the development of the Ukrainian venture capital market?

The Committee's goal is to increase attracted capital to Ukrainian startups and unite local and international investors interested in Ukrainian startups into a single ecosystem. Today, the Committee has 21 members that manage assets worth over $2 billion, which allows them to effectively accumulate resources and direct them to the development of Ukrainian innovations.
At the same time, the Committee is responsible for implementing Techosystem's strategy to promote investments in Ukrainian startups, develop partnerships with venture capital funds, and establish interactions between startups and investors. Among the planned projects:● Gathering pipeline of Ukrainian startups currently raising for Ukrainian and international investors;
● Conducting research on investment deals in Ukrainian startups from year to year, and other market research;● Building ties between Ukrainian and international investors to attract global capital and strengthen the international presence of Ukrainian companies;● Promoting Ukrainian venture market internationally, strengthening synergies between the ecosystems of Ukraine, the EU, the US, and beyond● Improving market knowledge and skills of angel investors, and other venture capital specialists;● Launching and operating the Equity Crowdfunding Platform to expand access to investment and boost economic development.

What are the main challenges facing the Ukrainian venture capital market today?
First of all, there is a lack of external capital and engagement of international investors with Ukrainian startups. The Committee involves local players who invest even in times of war, demonstrating their resilience and reputation. We are making efforts to attract international partners to invest into Ukrainian startups — often along with Ukrainian investors as the leaders of the rounds, opening access to deals for global players.
Over the past decade, the market has gone through waves of growth and decline. In 2015-2020, there was active growth, peaking at $800M+ in investments in 2021. Then in 2022, Ukraine dropped 16 positions in the Global Startup Ecosystem Index. However, in 2023, the rate of decline slowed to 11%, and the share of early investments remained at 38% compared to 39% in 2022, which indicates confidence in the Ukrainian tech sector.
In 2024, Ukraine, along with Poland and Estonia, remains among the leaders of the tech market in Central and Eastern Europe. The most active sectors are AI and DefenseTech. For example, in the second quarter, 14 invested startups used AI, and in the third quarter, 5 out of 11 private venture rounds were closed by defense companies. It is expected that the share of defense R&D will account for 30-50% of deals in the coming quarters.

What hinders the development of Ukrainian startups during a full-scale war?One of the key barriers is the lack of a mechanism to protect venture capital investments. Among the risks is the mobilization of teams. “The situation is better with DefenseTech startups, but in other cases, founders can be drafted to the army at any time posing a risk for further startup development” explains Andriy Zinchuk, managing partner of ZAS Group.
There is also a lack of tools for international investors toinvest in Ukrainian companies. And because of that Ukrainian startups are often registered abroad. However, Techosystem venture investments committee is currently supporting Diia.City in creating an instrument Diia.Invest which will make it possible for foreign investors to invest into Ukrainian startups easier. 
Due to the urgency to prioritise its own country needs, there is some lack of global thinking in Ukrainian startups. Some teams sell their products with almost no margin because they “don't want to make money on the war.” This makes it harder for startup teams to re-invest into further development of innovation and technology.
Techosystem, including its venture investments committee, is finding ways to tackle these challenges and international support is crucial for this. 
What initiatives does the Committee implement in 2025?The committee has already launched pipeline of Ukrainian startups raising investments which members of the committee are using to source the most promising Ukrainian innovative products and to share interest with each other and external investors for co-investment. 
The committee expands the international presence of Ukrainian startups through delegations to global conferences such as Latitude59.For example, we will be organizing an official side event with a focus on DefenseTech and up to 20 Ukrainian startups will be pitching in front of wide audience of international investors. 
The committee works on an educational program for angel investors to improve culture of angel investing in Ukraine and provide another financing opportunity for startups. These are just some examples of projects of the committee but generally any member of the committee can benefit from and contribute to the existing projects or propose new ones: education for angel investors, matching grants, structuring of Ukraine’s venture legislation, others.

Why did you head the Committee?The decision to head the Committee was not just a new stage for me, but an opportunity to shape the rules of the game in the market from the inside. I believe that now is the moment when the Ukrainian tech ecosystem needs clear leadership, structural changes, and synergy between players. I wanted to unite key market participants around common goals and turn the Committee into a platform for action, not just discussion.Both Techosystem and ZAS are functioning like startups, and their mission is to raise funds for Ukrainian startups. Over the past 10 years, I have built a network of more than 400 venture capital fund partners, and I see my task as multiplying ZAS's experience: to create a tool for deal sharing, networking, and structural changes that will accelerate development even during the war.
Are Ukrainian startups ready to attract investment?If the founder is experienced (for example, a 2nd-time founder or a Y Combinator graduate), it is easier to raise. But newcomers lack fundraising, pitching, selling skills. This is where accelerators, that are also a part of venture committee, play their role as well as business support organizations, like Techosystem itself. 
Founders need to build relationships with investors in advance — get to know the funds 6+ months before the start of fundraising, demonstrate progress, send updates. At ZAS Ventures, we even hold free office hours to advise funders. And one of the main tasks of Techosystem is to connect founders with investors so that this relationship can begin and develop. 
What trends in venture capital investment will be relevant in the coming years?The democratization of investments is developing: the number of small funds and solo GPs is growing. Angel syndicates are another trend: ICLUB, ZAS Angels, Toloka.vc, and UAN are actively developing the culture of angel investing.
After Ukraine’s victory, we expect a surge in funds that wish to invest in Ukraine. So techosystem is working on assuring enough quality startups and for example, supporting DefenseTech startups with pivoting to civic use. 

How did the war affect the venture capital market? What opportunities have emerged?New niches have emerged, primarily in defense, cybersecurity, logistics, and humanitarian technologies. Challenges include new approaches to risk management, new investment formats, and cooperation with local players.
An equity crowdfunding market is being launched. For example, — BeFunders (a member of Techosystem), a platform launched by ZAS Ventures that allows Ukrainian investors to support startups with Brave1 status, starting with a minimum investment of $100. The platform is focused exclusively on defense technologies in times of war. The first deal has already been closed, and the public launch is scheduled for July. BeFunders mobilizes internal resources, turning donors into co-owners of solutions that create an asymmetric advantage for the Defense Forces, and at the same time offers a new model of engaging citizens in supporting innovations that have a practical impact on defense capabilities. In the future, the platform may become an entry point for funding not only military but also impact and classical technology projects.
What advice would you give to investors and startups that want to develop in Ukraine?Join Techosystem and the Techosystem Venture Investments Committee. This will give you access to local experience, exchange of vital information on startups, and proven deals. This is an opportunity to co-invest with local funds that run startups and understand the landscape.
The Committee provides:● pipeline of promising Ukrainian startups (AI, HealthTech, DefenseTech, Energy & Environmental Tech, etc.);● access to due diligence and reputational checks of funders;● participation in events, market analytics, and policy making;● support for the development of angel investment culture;● correct representation of the Ukrainian tech ecosystem abroad.
And most importantly, come to Ukraine. Many startups operate globally and have traction abroad, but their heart is here. And this is where the new technological frontier of Europe is born.