Dmytro Agapov, Founder and CEO of Paykit POS: «7th place for Paykit in the national startup battle. A good result, but not enough».
IT ClusterThe Ukrainian fintech startup Paykit POS took 7th place in the national startup battle held by the Ukrainian Startup Fund (USF).
Dmytro Agapov, CEO of CHM Software — a Kharkiv IT Cluster member company and the founder of Paykit POS, described the experience as a significant achievement, though he acknowledged that the ambitions were higher. Read on to learn more about the preparation process, challenges in attracting investment, and results from the competition.
From Idea to Presentation
Preparation for the startup battle began at the end of last year. At that time, an angel investor from Germany discovered Paykit and suggested listing their pitch deck on a local investment platform. This prompted the team to take proactive steps — instead of waiting for luck, they began reaching out and meeting with potential investors.
«We have made nearly 20 presentations to various types of investors over the past nine months. One of the most interested parties was a Polish investor, introduced to us by Merge Capital. Preliminary agreements have advanced to the point of company valuation approval, but financing negotiations are still ongoing. There are chances for funding, but there are nuances. They are interested in our entire company, and Paykit must be included in the proposal», explains Dmytro Agapov.
In parallel with these negotiations, the company applied to the Ukrainian Startup Fund to explore new funding opportunities.
Challenges on the Way to Participation
During preparation for the startup battle, the team encountered the reality that different types of investors provide funding at different project stages.
«It’s common knowledge, but now we’re seeing firsthand how it works. Some investors prefer to enter at the early stages of product preparation, others require initial sales, and some need a certain level of sales achievements», says Dmytro Agapov.
To make the startup appealing to potential investors, the team needed to show progress in terms of first clients and revenue.
«Our initial sales took place in Ukraine, and then we expanded to Lithuania, where our local partner achieved better results thanks to an existing client base and a high level of trust», comments Dmytro.
USF Startup Battle Finals
Careful preparation enabled Paykit to score highly in preliminary rounds, securing a spot in the top 15 startups among 200 participants.
«Initially, it was announced that the top 7 projects would receive funding of $50,000. We planned to use these funds for marketing in the Ukrainian and European markets», says Dmytro Agapov.
Despite placing 7th, Paykit did not receive the grant. The team felt mixed emotions as the joy of success was tempered by the disappointment of being unable to execute further plans post-competition.
«We have mixed feelings. On the one hand, we’re proud to be among the top Ukrainian startups. On the other hand, although we reached the announced top seven out of two hundred, we didn’t receive the promotional budget. However, participation in the competition remains an achievement that confirms the quality, potential, and level of preparation of our product for potential investors», shares Dmytro Agapov.
The founder acknowledges that participating in the competition is still an accomplishment, reinforcing Paykit’s quality and potential for investors.
This outcome highlights the strength of the idea and the team’s efforts. Dmytro Agapov, founder and CEO of Paykit, emphasizes that each experience, even with some obstacles, is another step toward success. The team plans to keep moving forward, gradually gaining support from international investors and expanding into new markets.
Reference
Paykit POS — a product by CHM Software for small and medium-sized businesses, providing payment management, reporting, and data synchronization between retail points and offices.
Ukrainian Startup Fund (USF) — a state fund supporting early-stage Ukrainian startups by offering grants and helping them integrate into international markets.