Last week the Ukrainian media reported the launch of Pragmatech Ventures, a venture capital firm and startup studio that aims to “build fast-growing B2B SaaS and marketplace companies.” Other target segments include proptech, biotech and HR tech.
The firm is headed by Yevhen Sergeev, a former Microsoft engineer who says he co-founded “two nine-digit dollar companies.” These include iDeals, “the world’s fastest-growing virtual data room software company,” and Genesis Tech, “the largest European consumer Internet conglomerate with 15+ web and mobile products which are used by 200+ million people daily.”
With seven team members, Pragmatech intends to invest from $500,000 to $2 million in some six companies annually.
In an exchange with the Ukrainian tech blog AIN.UA, Sergeev said his goal in the first year goal is to close deals with teams from Eastern Europe, becoming the “by default” fund in the B2B SaaS for the region. Then Pragmatech will start targeting Western European startups.
The firm’s first investment went to Ukrainian HR service Hurma System. Launched in September 2018, this startup has developed a solution to handle “all processes for recruitment, HR and OKR in one system.” The company claims more than 60,000 users from over 500 client companies as of August 2020.
A dozen startup funds operate in Ukraine on a permanent basis, investing mostly in digital high tech start-ups. Most of these funds are originated in Ukraine and backed by Ukrainian LPs. Among the most notable ones are AVentures Capital, Digital Future, Genesis Investment, SMRK and TA Ventures. Acrobator Ventures and U.ventures are specific cases, operating in Ukraine while being backed by foreign investors.