UMAEF will invest $50 million in SMEs in Ukraine and Moldova. How to get funding?
*Translated from Ukrainian
Anastasiia Ishchenko, Finance Editor, LIGA.net
July 30, 2025
UMAEF has allocated $50 million to support SMEs in Ukraine and Moldova. The first investments are planned before the end of 2025.
UMAEF is a regional fund financed by the U.S. government that has been investing in Ukraine and Moldova since 1994. In addition to its SME program, the institution invests in tech startups, supports education and the introduction of sustainable business practices.
LIGA.net corresponded in writing with Oksana Strashna, Director of the SME Direct Investment Program at UMAEF, to find out who can receive investment and how to apply.
What is UMAEF and how does the fund operate
Ukraine-Moldova American Enterprise Fund (UMAEF) — known until 2025 as the Western NIS Enterprise Fund — was one of the first investors to help establish Horizon Capital.
UMAEF’s President and CEO is Jaroslawa Johnson. Its Executive Vice President and Country Manager in Ukraine is Lenna Koszarny, who also serves as Chief Executive Officer of Horizon Capital.
Under the Western NIS Enterprise Fund brand, the institution financed the Ukrainian confectionery company AVK, building materials manufacturer Slobozhanska Budivelna Keramika, Moldovan brewer Vitanta (now Efes Vitanta Moldova Brewery), and many others.
“Over the years, UMAEF has invested more than $190 million in businesses in Ukraine and Moldova and made it possible to unlock over $2.4 billion of added capital,” writes UMAEF’s SME Direct Investments Program Director Oksana Strashna.
What is the new $50 million SME program?
In November 2024, the fund launched a SME Direct Investments Program totaling $50 million. The funds will be distributed among 10–15 companies from Ukraine and Moldova, with investments per company ranging from $1 million to $5 million.
Financing may come as equity or quasi-equity — an instrument between a loan and an investment. The main requirement is the company’s ability to grow two to three times within five years. No investments have been made yet, but the fund plans to back its first companies before the end of the year.
Who can receive investment?
UMAEF only invests in businesses that have already proven their viability in the market: those with a profitable model, expertise, and a capable team.
The focus is on manufacturing companies with the potential to scale in the domestic market or in exports. It can be B2C as well as B2B sectors, the key factors here are high growth potential and value creation, says Strashna.
“We prefer manufacturers,” she writes. The technology sector is out of the scope of this particular UMAEF program: tech players already receive financing from private investors, unlike companies in the real economy.
Requirements for potential investment recipients include:
- business must operate for at least three years;
- annual turnover must be at least $5 million;
- EBITDA profitability of at least $0.5 million;
- the company must not be located near the front line;
- business must not be in financial distress.
“We do not invest in ideas or startups. We look for companies that do well and want to scale,” Strashna emphasizes.
Why focus on small and medium-sized businesses?
The fund focuses on SMEs partly because of the significant role they play in national economies, Strashna notes.
Since the start of the full-scale war in Ukraine, large enterprises have significantly reduced staff numbers, while SME employment figures have remained largely unchanged. According to the fund’s data, SME businesses still employ more than 3 million people, not including sole traders and micro-businesses.
“In 2021, SMEs accounted for 41.58% of Ukraine’s GDP. In 2023, that share slightly declined to 40.37%, but the importance of SMEs to the country’s economy remains high,” Strashna emphasizes.
How to apply
Applications for investment can be submitted through the UMAEF website. The fund receives around 10–15 inquiries per month, though some of these are grant requests, which the fund does not consider.
UMAEF specialists also look out for companies through business networks, associations, and conferences. As of July 2025, the fund has reviewed more than 150 projects.
Where UMAEF does not invest
UMAEF has a clear list of sectors it does not consider:
- military production;
- gambling;
- strong liquor;
- agricultural sector.
The fund also does not invest in companies that plan to move their operations out of Ukraine. Priority goes to businesses that want to scale within Ukraine and create value inside the country.
“We want to see how a team has grown its company, how it went through crises, and what the secret to their success is. We invest our own resources and generally do not consider projects that require partners,” Strashna concludes.