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April 28, 2023

Finnfund’s 15 million USD investment in Horizon Capital Growth Fund IV provides growth equity capital to Ukrainian technology and export-oriented companies

Kyiv-based Horizon Capital Surpasses its 250 million USD target at in-person signing ceremony with president Volodymyr Zelenskyy and investors

Horizon Capital, a U.S. private-equity firm investing primarily in fast-growing tech and export-oriented companies in Ukraine, announced that its latest fund, Horizon Capital Growth Fund IV, has reached $254 million at its Interim Closing held today in Kyiv, Ukraine. Finnfund, a Finnish development financier and impact investor, has announced a USD 15 million commitment to the fund.

Jaakko Kangasniemi, Finnfund’s Managing Director and CEO, said: “The role of Finnfund and other development financiers is very important now that commercial investors hesitate.” While the IT sector is a priority sector for the Ukrainian economy, promoting digitalisation in developing economies is also a key theme in Finnfund’s strategy. Kangasniemi added: “Horizon Capital has extensive experience from both the sector and the country, and we are anticipating significant development impacts.”

U.S., EU and global institutions join forces to boost growth capital available for Ukrainian entrepreneurs

In besting its $250m target size at this second closing, the Fund demonstrates strong investor appetite for compelling opportunities in high-growth, high-impact tech and export-oriented companies, including light manufacturing, food processing, innovative consumer goods, fintech and more. Fund investments are expected to contribute to Ukraine’s ongoing resilience, including supporting growth and job creation, expanding the tax base, increasing availability of capital for SMEs, and promoting gender equality.

Lenna Koszarny, Founding Partner and Chief Executive Officer, said, “Today, Horizon Capital and our esteemed group of investors have made history, as the first growth capital and largest fund raised since the onset of the full-fledged invasion. Global institutions are uniting today to back a reputable team with a bold vision, proven investment strategy and track record. They have chosen to look past the headlines, to be brave, to move forward quickly and decisively and in doing so, to demonstrate to the leadership and people of Ukraine that they stand with Ukraine at this defining moment. For several of HCGF IV’s international backers, this marks their first commitment to Ukraine since the onset of the full-fledged invasion, and paves the way for billions of dollars in financing for other worthy projects to follow”. She added: “As we look to the future, we are inspired by the entrepreneurs driving Ukraine’s business resilience and their unwavering commitment, heroic actions and steadfast belief in the country and its victorious future. We look forward to continuing to back these visionary entrepreneurs to grow and develop their businesses, and plan to conclude the Fund’s first investments within one to two months.”

At today’s historic ceremony, the Fund welcomed increased commitments since first closing from the International Finance Corporation (“IFC”) and the European Bank for Reconstruction and Development (“EBRD”); a new commitment from existing investor Société de Promotion et de Participation pour la Coopération Économique (“Proparco”); as well as attracting investments from the U.S. International Development Finance Corporation (“DFC”), the Swedfund International AB (“Swedfund”), Finnish Fund for Industrial Cooperation Ltd. (“Finnfund”) and Danish Investment Fund for Developing Countries (“IFU”). These esteemed parties joined existing investors, including Deutsche Investitions- und Entwicklungsgesellschaft (“DEG”) and a subsidiary of KfW Group, the Dutch Entrepreneurial Development Bank (“FMO”), the Swiss Investment Fund for Emerging Markets (“SIFEM”), the Western NIS Enterprise Fund, and the Zero Gap Fund, an impact investing collaboration between The Rockefeller Foundation and the John D. and Catherine T. MacArthur Foundation.

The first 2X Flagship Fund in Central and Eastern Europe

HCGF IV also became the first fund in Central and Eastern Europe (CEE) to be awarded 2X Flagship Fund status, 1 of circa 10 globally attaining the highest 2X Challenge designation for funds, and an estimated 1 of 2 such funds led by a female Founding Partner & CEO. 2X Challenge was launched at the G7 Summit 2018 as a bold commitment to invest in the world’s women and promote gender equality in finance.

More information:
Jaakko Kangasniemi, Managing Director and CEO,, +358 40 577 7676
Materials for media: Valpuri Mäkinen, Communications Manager,, +358 50 384 2105

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