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  • The EU for Ukraine Fund managed by the EIB approves a €25 million investment in Ukraine’s equity growth fund, aimed at strengthening SMEs in Ukraine and Moldova.
  • This funding primarily targets asset-light, human capital-rich, export-oriented technology companies, building on the region’s rich engineering talent base.
  • The EU for Ukraine Fund is designed to rapidly address urgent needs and sustain economic stability in Ukraine, with over €400 million committed by EU Member States so far.

The EU for Ukraine Fund managed by the European Investment Bank (EIB) hosted its initial Contributors’ Committee meeting today. The EU Member States participating in the meeting greenlighted the fund’s first project financing — an investment of €25 million in Ukraine’s equity growth fund Horizon Capital Growth Fund IV (HCGF IV) managed by Horizon Capital, a leading private equity manager in Ukraine.

HCGF IV is in the process of raising at least €274 million ($300 million) to make growth equity investments, with a focus on tech and export-oriented small and medium-sized enterprises (SMEs) in Ukraine and Moldova. Backed by institutional investors including the EIB, HCGF IV seeks to enhance the market presence of businesses in Ukraine and Moldova and support their expansion efforts, particularly in sectors such as IT services and products, e-commerce, innovative retail and consumer goods, and fintech.

The €25 million investment in HCGF IV marks the first project of the EU for Ukraine Fund, initiated by the EIB in spring 2023. This fund is part of the broader EU for Ukraine initiative, which aims to quickly address Ukraine’s urgent needs and bolster economic stability. With over €400 million initially committed by 18 EU Member States — Belgium, Bulgaria, Croatia, Cyprus, Denmark, Estonia, France, Greece, Ireland, Italy, Latvia, Lithuania, Luxembourg, the Netherlands, Poland, Slovakia, Spain and Sweden — the fund is set to expand with additional contributions. Its primary aim is to support public and private projects, mainly in municipal infrastructure and access to finance for Ukrainian entrepreneurs.

Chairing the Contributors’ Committee of the EU for Ukraine Fund, EIB Vice-President Teresa Czerwińska, responsible for operations in Ukraine, said: “I am delighted to witness the rapid deployment of our EU for Ukraine Fund, reaffirming our commitment to swift, results-oriented action to support Ukraine. With the contributions of the EU Member States, we are set to immediately support SMEs and the private sector, crucial players in sustaining Ukraine’s economy during these challenging times. Our investment in the Horizon equity fund will hopefully have a signalling effect and attract other private investors. We hope that more donor Member States will join our EU for Ukraine Fund to enhance our collective EU support for Ukraine’s vital infrastructure needs and support the country’s resilience by reinforcing its macrofinancial stability.”

Lenna Koszarny, founding partner and chief executive officer of Horizon Capital, said: “The EIB’s backing comes at a crucial moment for Ukraine as it continues to defend its freedom, territorial integrity and path to a free, fair and prosperous European future. This investment will increase the capital available to Ukrainian entrepreneurs, supporting ongoing economic resilience, creating high-value jobs within Ukraine, increasing taxes paid, promoting gender-smart investing, and furthering digitalisation and innovation. Ukraine’s entrepreneurs have demonstrated extraordinary grit and resourcefulness, operating against all odds and asking only for resources to expand their ability to deliver both within Ukraine and beyond its borders. We are honored to be the first beneficiaries of the EIB‘s EU for Ukraine Fund and greatly appreciate the backing of the donor EU Member States to expand the availability of capital for Ukrainian SMEs.”

Background information


Since the start of Russia’s full-scale invasion of Ukraine in 2022, the EIB offered immediate relief to Ukraine, disbursing €1.7 billion of financing since 2022 and helping finance emergency repairs to the country’s ravaged infrastructure. The EU bank also provided a €4 billion credit line to support the integration of refugees from Ukraine in EU countries. Through the EU for Ukraine initiative and its Fund, the Bank remains committed to stepping up its activities in Ukraine, in line with the mandate given by EU leaders and in close cooperation with the European Commission, the European Parliament, EU Member States and international partners.

Horizon Capital

Horizon Capital is the leading private equity firm in Ukraine with $1.5 billion in assets from investors with a capital base exceeding $630 billion, raising over $750 million in growth capital in just over five years. The firm backs visionary entrepreneurs leading fast-growing, primarily tech and export-oriented businesses in Ukraine and Moldova. To date, its funds have invested in 172 companies employing over 80,000 people.