Venture Funds: Point72 veteran targets $50M for Ukraine defense tech VC fund

PitchBook ^ | September 17, 2024 | Michael Bodley

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A former executive with Steve Cohen’s Point72 hedge fund is betting big on Ukraine’s brewing private defense sector.

Perry Boyle, who was head of equities and capital development for Point72, is nearing a first close on a flagship venture capital vehicle for MITS Capital, Boyle told PitchBook exclusively. MITS will invest primarily in seed and Series A rounds for Ukrainian defense startups.

Later this month, the firm plans to hold a first close on its flagship VC vehicle, MITS Lightning Fund, which aims to raise about $50 million.

The launch comes as a US presidential election nears and peace prospects for the war remain up in the air. Prominent US VCs, including Andreessen Horowitz and Cerberus Capital Management, have launched defense-focused strategies.

New York-based Boyle joined with Ukraine-based fellow founding partner Anton Melnyk to get MITS Capital off the ground. Denys Gurak, a former venture partner at FF Venture Capital, is the third founding member.

MITS opened its doors in January, functioning as a Ukraine-focused boutique investment bank and advisory firm. The firm also operates a defense accelerator program.

Melnyk—a one-time advisor to Ukraine’s influential Ministry of Digital Transformation—is also an on-the-ground force working to assemble a planned expansion of Ukraine personnel.

Perry has been touting his Point72 credentials, especially his stint as head of capital development, in underscoring his rapport with the world’s top limited partners. He has venture credentials, too, having hammered out deals while in a family office investment role, including defense investments.

Ukraine’s projected military budget for 2024 is approximately $41 billion, dwarfed by the $111 billion that Russia has earmarked for defense expenditures. The differential, according to Boyle, presents an opportunity for nimble and innovative defense startups to rake in institutional cash to fill the government’s fiscal gap.

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MITS is especially interested in backing Ukranian startups merging technology with modern warfare...

[Rdct29]

Another money laundering operation, like Ukraine needs more of them. The guys name should be Denials instead of Denys. Do they have enough reasons to try to take Trump out? I see $50 million right off the top. I hope they lose every single cent.