Ukrainian projects have already raised almost $2 mln on crowdfunding platforms in 2017

Ukrainian projects have already raised almost $2 mln on crowdfunding platforms in 2017

Ukrainian startups are increasingly coming out on crowdfunding platforms, including the world’s largest ones: Kickstarter and Indiegogo. Their goal is to search for the first customers and orders, additional PR and market analysis. Also there are some more experienced projects that have in the “stock” several successful campaigns. According to the results of the first 7 months, 2017 has already become one of the “richest” for successful crowdfunding campaigns in the history of Ukrainian startups.

According to the Research committee of the Ukrainian Venture Capital and Private Equity Association  (UVCA), 35 campaigns have been launched at Kickstarter and Indiegogo, the most popular global crowdfunding platforms, since the beginning of 2017.

“According to the annual Investment market Overview by UVCA – most startups received SEED stage investments in 2016. Crowdfunding platforms can be an excellent alternative for earlier stage products. Also, the campaign success will be an additional argument for potential investors,” – said Olga Afanasyeva, Executive Director of UVCA.

It is important to note that most of the projects (83%) have successfully raised the necessary amounts. As of mid-August 2017, Ukrainian projects have already collected $ 1,895,252, which is four times more the initial goal.

Kickstarter is more popular among Ukrainian developers, 27 campaigns (77% of all projects) were launched on this platform in 2017. Whereas, Indiegogo is used as an additional channel for raising of funds. For example, startups Luciding, Senstone, Hushme practiced parallel launch of promotional campaigns on two platforms at once.

“Obviously, projects are more carefully prepared for access to crowdfunding platforms: they are thinking ahead of PR strategies and working with future backers,” – said Marianna Yarosh, Head of the UVCA research committee, explaining the success of Ukrainian campaigns.

The most successful campaigns in 2017 by the criterion of the ratio of the declared goal and collected funds were:

1 – Jollylook (eco-friendly camera for instant pictures) – managed to collect $377 thous. instead of $15 thous. initially declared.

2 – Senstone (stylish pendant for transformation of voice memo into text) – project raised $370 thous. in total.

3 – UGEARS Hurdy-Gurdy (unique mechanical musical model) – managed to collect more than $290 thous.

Unfortunately, there is not always an opportunity to determine the “ownership” of the project to Ukraine, almost half of the projects indicate the USA as their location. This is due to their focus on the global market. But in recent years, more often you can meet Ukrainian cities in the description of projects.