The venture fund Flyer One Ventures (F1V) has announced the write-off of 10% of startups from its investment portfolio. Co-founder Oleksiy Yermolenko stated that F1V considers this level of write-offs to be low and plans to increase this figure.
This is reported by Finway
Investment strategy and fund results
Since its founding in 2018, F1V has invested nearly $45 million in over 90 startups. One of the companies that was closed is Elision — a platform for the distribution and monetization of podcasts. The names of other startups that are subject to write-off are not disclosed.
“This is low; we need to work on increasing this figure,” Yermolenko believes.
Comparison with international funds and profitability
Oleksiy Yermolenko emphasized that in leading international venture funds, the level of write-offs is usually higher, as they deliberately invest in riskier projects. According to him, such funds either aim for companies with an exit of over 10x or for the complete closure of the startup. Yermolenko notes that one successful startup in the portfolio can return the entire fund, while another 2-3 can bring in over five times the income, and the rest either yield 2-3x profit or are completely written off.
Among F1V’s projects are companies that have grown by 900% since receiving investments, but their names are not disclosed. Yermolenko emphasizes that the number of written-off startups is not critically significant for the fund, provided there are high-return companies in the portfolio.