You're reading: Local venture fund makes second investment in Ukraine’s IT sector of year

AVentures Capital, an early stage Ukrainian venture capital fund that invests primarily in the region’s information technology sector, announced on April 10 that it made its second investment this year. The venture fund said it purchased a minority stake in nuPSYS, a leading visual network software developer with research and development bases in Ukraine and Russia.

The two sides didn’t disclose the financial details of the transaction. 

However, IT industry experts pegged the investment amount at $1-$2
million. The company’s news release added that nuPSYS
is looking to bring the total investment this round to $5-$6 million after attracting
international investors. 

nuPSYS develops innovative software that simplifies the process of network
management and automation for large corporate networks consisting of thousands
or tens of thousands of units or devices. Among other solutions, nuPSYS allows for network management, design, monitoring, analytics, troubleshooting, and
optimizations. The company is credited for developing a one-of-a-kind approach to visualizing corporate networks
through the use of video hardware rendering technology.

The software
developer was founded by Dmitry Bokotey, a recognized engineer in his field. His company has already generated $1 million in revenue during product pilot tests.

“There are very few products in the world with which we will really
compete. They are Tivoli (owned by IBM) and SolarWinds’s software solutions. We offer a product as
functional as Tivoli yet at affordable prices as SolarWind. We can install
one-stop, all-in-one solutions for network management of complex
corporate networks within a few weeks,” said Dmitry Bokotey, CTO and co-founder
of nuPSYS. 

Bokotey is a Ukraine-born entrepreneur, who moved with his family from his
native Chernivtsi to the U.S. in the mid-1980’s. He excelled in a
corporate career at Cisco Systems for a period of 15 years. Bokotey left Cisco in 2010 to lead what was to become one of the world’s most
advanced software for network management and automation companies. His company serves Fortune 500 customers, including large enterprises across the globe. 

Yevgen Sysoyev, Managing Partner of AVentures Capital said that “nuPSYS targets a multi-billion dollar global market, and can be scaled to
a $1 billion company or even more. Its competitor SolarWind is a public company
with a market capitalization of $4.1 billion.” 

On Feb.
15 AVentures bought
a 25 percent
equity stake in Augmented
Pixels
, a technology developer for Google Glasses and other augmented
reality applications.

Launched in March
2012, AVentures plans to invest up to
$30 million within the next two to three years. Its target investments are the
consumer internet and e-commerce sectors in Ukraine and Russia, as well as
software, mobile, gaming and other digital-related projects with a larger geographical
reach.

The fund is co-managed by Sysoyev and Andriy
Kolodyuk, the founder of Divan.TV, a leading over-the-top content Smart TV
operator in Ukraine and Russia.

According
to a recent report by the National Commission for Communications Regulation, volume
on the Ukrainian IT market this year could reach
$3.6 billion.

The same
report added that the IT services segment could reach $320 million.

The most promising fields, according to experts,
will be services related to outsourcing and system integration, as well as the
development of so-called cloud computing.

Kyiv Post
editor Mark Rachkevych can be reached at [email protected].