Horizon Capital’s Ukraine-focused Fund IV exceeds target size, raising over $250m at its Interim Closing; becomes CEE’s first 2X Flagship Fund and 1 of 10 globally
April 28, 2023
April 28, 2023 – Horizon Capital Growth Fund IV (HCGF IV) exceeded its target size today, doubling commitments to $254 million and becoming the 1st fund in Central and Eastern Europe (CEE) to be awarded 2X Flagship Fund status, 1of circa 10 funds globally who have achieved this distinction, and 1 of only 2 such funds who are women-founded and women-led. The Fund will provide growth capital to back visionary entrepreneurs in Ukraine and Moldova. HCGF IV is managed by Horizon Capital, a U.S. private-equity firm investing in fast-growing tech and export-oriented companies in Ukraine and the near region, and led by Founding Partner and CEO Lenna Koszarny.
Ukrainian tech continues to demonstrate improvement in gender diversity, accelerated by long-standing traditions of STEM education as well as demand for talent. Beyond the sharp increase in the share of women in tech, up from 7% in 2012 to 27% in 2021, the industry has already produced numerous global success stories of women founders, including Creatio and BetterMe among others. HCGF IV will apply a gender lens to its investment strategy with the intent of building a portfolio of over 30% of 2X eligible investments, further building on its current track record with the firm meeting 4 of 5 2X Challenge criteria.
International Finance Corporation (“IFC”), the European Bank for Reconstruction and Development (“EBRD”), US International Development Finance Corporation (“DFC”), the Deutsche Investitions- und Entwicklungsgesellschaft (“DEG”) and a subsidiary of KfW Group, the Dutch Entrepreneurial Development Bank (“FMO”), Société de Promotion et de Participation pour la Coopération Économique (“Proparco”), the Swiss Investment Fund for Emerging Markets (“SIFEM”), Swedfund International AB (“Swedfund”), Finnish Fund for Industrial Cooperation Ltd. (“Finnfund”), Western NIS Enterprise Fund (“WNISEF”) and Danish Investment Fund for Developing Countries (“IFU”) have signed a Memorandum of Understanding with Horizon Capital to award HCGFIV as the first 2X Flagship Fund in CEE, due to its commitment and intentionality on promoting women’s economic empowerment at the fund manager level and the portfolio level.
Lenna Koszarny, Horizon Capital’s Founding Partner and CEO, said: “Horizon Capital has been a trailblazer since its launch in 2006 with many firsts to be proud of. We look forward to expanding our leadership amongst our peers and inspiring others as the first Flagship Fund in the CEE region, further reaffirming our commitment to advancing women in private equity. Investing in companies with a strong commitment to gender diversity is good business, as this leads to improved financial performance, higher employee satisfaction and better outcomes. We firmly believe that companies with diverse leadership teams are more innovative, resilient, and ultimately, make better decisions and achieve greater results. This is more important now than ever in Ukraine, where agility, rapid decision-making and mobilizing the talents of diverse teams may make the difference between surviving and thriving. Adopting a gender lens investment approach both promotes gender equality and supports economic growth, while contributing social impact that is so important for Ukraine during these challenging times. For Horizon Capital, being recognized as a 2X Flagship Fund confirms our long-standing, demonstrated commitment to gender equity in doing business in Ukraine and Moldova.”
Jessica Espinoza, CEO of 2X Global said: ““Raising a $250 million fund is a huge achievement – and unheard of in times of war. Lenna and her team have not only been navigating the full-scale invasion of Ukraine over the past year, supporting their 26,000 person extended Horizon Capital family through the portfolio companies that they back with growth capital in Ukraine, but has also raised tens of millions of dollars in humanitarian aid for the country. Her brave leadership and deep commitment to building a gender-smart financial and entrepreneurial ecosystem in the face of war and during a time when women and girls of Ukraine are facing severe impacts, is a huge contribution towards inclusive tech-enabled innovation, economic resilience, and freedom.”
About Horizon Capital:
Horizon Capital is the leading private equity firm in Ukraine, backed by over 40 institutional investors with over $1.4 billion under management in six funds. Horizon Capital is a value-added investor, backing visionary entrepreneurs leading transformational businesses in Ukraine and the near region.
About the 2X Challenge:
The 2X Challenge was founded as a call to action to shift more capital towards investments that empower women in developing countries to access entrepreneurship and leadership opportunities, quality jobs, and products and services that enhance their economic participation.
About 2X Flagship Funds:
Vehicles awarded status as 2X Flagship Funds are gender-smart funds, who are committed to both improving gender diversity in the investment industry (within the fund managers themselves) and also to investing with a gender lens to build gender-smart portfolios using the 2X criteria.
About 2X Global:
2X Global is a global membership and field-building organization for investors, capital providers, and intermediaries working in public and private markets, across both developed and emerging economies. By working together with the full spectrum of investors, capital providers, mobilisers, and influencers, we will help shape the market on a whole new level, ultimately transforming systems of finance through the gender-smart deployment of capital across asset classes and markets.
2X Global is the new name for two former leaders in the field: 2X Collaborative and GenderSmart, whose respective field building and membership clout have helped to catalyze billions of gender-smart investing dollars since 2018.