INVESTMENTS / SECURITIES 
 


     What about prospective projects in Ukraine?


Perhaps, the only example of the significant venture investment in the Ukrainian Internet companies is "Nadima Group" that was created as a result of the deal between the French Investment Fund Societe Generale Emerging Europe with Relcom Ukraine and IP Telecom though the mediation of Lederburg Thalmann.
"Most of the Ukrainian Internet companies are not prepared for venture investment", said Vadim Novikov, director of the business development department at "Alfa Capital". "The proposals that we are dealing with are not mature enough for the investors to treat them seriously. Our priority is just a starting out enterprises but it must prove its self-sustainability. We don't work with ideas, we work with enterprises that have been materialized and are making profit, but still require some financial injections for the further development. Most of the Internet projects in Ukraine need other financial support in the form of incubators, business angels, and seeds (?) investors. To my mind, there is a high demand for these kinds of investors in Ukraine.

Nonetheless investors point out many interesting proposals in the area. However, the enterprises' level of preparedness in terms of business is much to be desired. Imre Brenzovych explains it by the fact that former engineers who simply lack the basic free market management skills are those who primarily manage most of the Web-projects.

The biggest number of investment propositions is in the B2C projects. According to Serhiy Bulavin they account for 90% (SigmaBlazer defined half of them as prospective and only 10% that are ready for investment). The B2B projects hold the second place with 6%. Another 3% is in the area of business solutions and 1% accounts for B2G (Business-to-Government).

         24/11/00

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