nyc event razom ukraine: rise of ukraine as technology nation
TRANSCRIPT
Rise of the Technology Nation:Ukraine tech key findings and sector highlights
Yevgen SysoyevManaging PartnerAVentures [email protected]
Source: High-Tech Ukraine 2015 2
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Despite odds, Ukraine software tech miracle is growing fast
Ukraine software tech industry is booming these days and our country is increasing its role in the global knowledge economy
Dec 29, 2014Nov 24, 2014
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Snapchat acquired startup Looksery for $150MM
September 15, 2015
Looksery – a two and a half year-old company from Odessa, Ukraine
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Invest Ukraine? IT Sector? now? Georges Soros said: yes, yes, yes
November 18, 2015
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So what is going on? Rise of Technology NationDecember 16, 2015
http://www.slideshare.net/YevgenSysoyev/ukraine-rise-of-a-technology-nation
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Ukraine has the largest and fastest-growing number of IT professionals in Europe
Ukraine IT engineering work force is expected to double to over 200,000 by 2020
Ukrainian talent can offer a wide range of engineering capabilities
US market is the main destination for Ukrainian IT firms, with an estimated 80% volume of exported services
Over the past year, Ukraine has significantly improved its status in international business venue rankings
Ukraine has the long history of country of innovation and now it is unleashing its potential in IT space, again
Key Findings: Pre-release 210-pages research “Rise of the Technology Nation”
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Ukraine IT sector delivers value to fortune 500 companies & beyond…
IT COMPANYBASED IN UKRAINE SELECTED CLIENTS
Ever growing number of Fortune 500 companies, and beyond, directly or indirectly has a software shop in Ukraine
Software R&D in Ukraine is of highest world-class quality and certainly very competitive compared to rest of world
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…to US & EU largest corporations, tech companies and startups
IT COMPANYBASED IN UKRAINE SELECTED CLIENTS
Those international players who come for R&D in Ukraine, remain long-term partners and happy customers
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While many international companies even set up R&D centers in Ukraine
America Europe Asia
100+ global companies has already established R&D centers in UkraineUkraine can still offer large pool of engineers for new R&D centers
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Growing number of Ukrainian startups become successful internationally
VERTICAL SELECTED COMPANIES
Web
Mobile
Enterprise
A decade ago, to succeed in the US market, one had to leave Ukraine. So many Ukrainians left and went to US, Canada, Israel where they built large tech businesses
These days more and more talent stays locally to build global tech business, particularly targeting US market
Appearance of first few Ukrainian “Unicorns” is on a horizon, I start the countdown…
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With many of these startups generating 99% revenue globallyand having HQ in USA
DESCRIPTION
REVENUESTRUCTURE
R&D OFFICE
HQ ANDSALES OFFICES
IoT company that develops interactive pet monitor
systems and mobile pet lovers community
Online marketplace for digital images, the leading player in
emerging markets
A leading provider ofsoftware-defined storage for
Hyper-V Microsoftenvironments
99% - global markets1% - Ukrainian market
99% - global markets1% - Ukrainian market
99,9% - global markets0,1% - Ukrainian market
25 1 250 56
6 20 6
I’m personally proud to be part of these success stories out of Ukraine
Online, enterprise, consumer, mobile, IoT, payment, SaaS – all kinds of international software tech companies emerge from Ukraine
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Fast developing sector across all dimensions …
Increasing number of R&D centers in
Ukraine
Increased delivering of world class
software globally
2,000+ startups = Increased
internationally success
Continued VC investment activity and international
M&A activity
2X increase for MCap of EPAM and
Luxoft (R&D in Ukraine)
Tech sector is accelerating the transformation of Ukraine
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… so IT sector is transforming the Ukrainian economy and the country as whole
IT services export ranking IT services export ranking
2014F 2025E 2014F 2025E#1 #1 #7 #1-2
Share of IT in Ukrainian exports to the US stood at 40% in 2014
IT services is #1 export item to the US and will remain so in 2025
Share of IT in total Ukrainian exports was ca 4% in 2014, while it
was close to zero a decade ago
By 2025 IT services might become #1-2 export item in the total export structure of Ukraine
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…and it is already an important part of global tech value chain
#1 in CEE by # of developers and
$ volume
#1 size of working population in CEE
TOP 7 country withthe most engineering
graduates
TOP 3 by earningsof freelancers
at eLance-Odesk platform
Thanks to the strong technical education, Ukraine has superior human capital. Its workforce of 100,000 IT professionals is world class and fast growing
Ukrainian IT sector is playing an increasingly important role on in a global knowledge economy
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Who are those 90,000 IT professionals?
What do they do in IT?
60%
Which city are they based in?
30% 4% 3%Outsourcing Freelance
Product Startup
Roles
Manager Developer Q&A
14%
55%
11%
11%44%
15%
8%
8%
LvivKyiv
Kharkiv
Dnipropetrovsk
Odessa
Which gender are they?
14% 86%
They have high education and speak 3-4 foreign languages, interact with the outside world every day and help to build “new Ukraine” and its knowledge economy
With average age of less than 30 years and x5-10 higher salaries than its peers, they form Western minded middle class who is putting pressure for reforms
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BrainBasket Foundation: Best investment is always education into people
New wave of social educational project Coding for Future for refugees and military conflict participants
Technology Nation – is a pan-Ukrainian educational project that allows anyone to study computer programming for free
“How to get in IT” – “live” video meetings for those who wants to get into the world of IT, but do not know how to start.
School Boost is a project that stands for improvement of the quality of teaching of IT in schools
BrainBasket goal is to educate 100,000 more IT professional within next 5 years, or double the engineering workforce in Ukraine. This is what being done as we speak
JOIN US - SUPPORT UKRAINE!
What: Global conference to promote Ukrainian Technology Ecosystem Two tracks: Startups & Distributed Development
Where: Silicon Valley, San Francisco Bay Area
When: April 21, 2016Target Audience: Technology and business leaders of US-based companies interested in working with global technology experts; Ukrainian based technology companies interested in US market exposure
Questions:Zhenya Rozinskiy 818-272-8232 [email protected] Bilogorskiy 408-203-4323 [email protected]
Bridging Ukrainian IT sector with partners, investors and customers in Silicon Valley
Global World Tech Conference: join us!
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Set up your R&D in Ukraine, tell your CTO-friends
Invest in Ukrainian tech, enjoy returns
Support the education initiative BrainBasket, help Ukrainian people
Have an idea for startup? Get MVP quickly and efficiently with Ukrainian outsourcing firms
Your ideas are welcome too!
We are doing all of the above, so ask me questions!
How can we work together?
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Contacts
Yevgen SysoyevManaging PartnerAVentures [email protected] @YevgenSysoyevhttp://www.slideshare.net/YevgenSysoyev