Where are the Opportunities in Ukraine’s
Internet Market?
By Ken Leaver
Dnepropetrovsk Startup Event
September 2013
What spheres are interesting in Ukraine?
So many options… how to choose?
First examine some of the global trends
1. Mobile taking off
In 2013, mobile devices will pass PCs to be most
common Web a...
A few more…
Greater personalization of Internet products and
services than ever before.
Source: Forbes.com, “Top 10 Strate...
Some of the trends in Ukraine
1. People getting more accustomed to
purchasing and paying online
Less fear associated with ...
So if you’re going to start a new Internet
business in Ukraine, what do you do?
These are the 3 questions I will cover tod...
Global or Local Model? Look at the
landscape first.
Global Opportunities
Local Opportunities
(Just Ukraine or CIS)
• Stron...
Local or Global Model? Also look at
yourself.
Have you done an Internet project
before?
Is your product/idea in an area wh...
E-Commerce: Overview
The big opportunities are already occupied
by big players
Requires relatively large funding
Import pr...
eCommerce models to consider
Fab BlueNile
• Groupon-style emails
• Focus on style & taste
• Difficult-to-find products fro...
Marketplaces: Overview
Definition = lots of buyers and sellers
One player typically wins and others lose.
That single play...
Marketplace models to consider
Houzz Etsy
• Home remodeling is very fragmented
(lots of small companies)
• Typical marketi...
Travel: Overview
International players currently dominate
(eg. Booking.com, OneTwoTrip)
Difficult for a Ukrainian startup ...
Travel Models to Consider
Hotel Urbano
Hotel Tonight
• Online travel agency =
combination of physical
presence + huge emai...
Mobile Apps: Overview
1m+ apps on the appstore = Tons of
competition. Tough to be found.
High drop off rates after install...
Mobile App Models to Consider
Uber
Yelp
4th Industry
• Yelp model still up for grabs in
Ukraine as no clear leader
• A cle...
SAAS: Overview
International players quite experienced at this
point but focused on own markets
Easier to focus on the reg...
SAAS Models to Consider
CureBit Bizible
5th Industry
• Allows you to know the source of
all your customers (PPC, Organic,
...
Education: Overview
Most agree the current education model is
not effective. Especially in CIS.
Many professionals need to...
Education Models to Consider
Lynda.com
6th Industry
Eduson.tv
• Creating high quality content in-
house and selling it man...
Financial: Overview
Financial services improving at an very
rapid pace globally
Key players are still banks but
online pla...
Financial Models to Consider
Wealthfront.com Tinkoff
7th Industry
• Ukrainians still mainly investing in real
estate
• Inv...
So many spaces still up for grabs in
Ukraine
Eastlabs wants to help entrepreneurs build the future
Eastlabs Unique Value Proposition
Investment
Eastlabs is the only full-
scope startup accelerator
in the region with the
a...
Online Application
to Eastlabs
Day 1 Day 7 Day 30 Day 45 Day 60
Prepare Pitch
Presentation
Review by
Investment
Committee
...
Incubation Program
Startup
Basics
Week 1 Week 2 Week 4 Week 5 Week 6
Value Proposition
Business Model
Prototyping
Financia...
The Team
Eveline Buchatskiy Hrish LotlikarKen Leaver
Our Portfolio
Eastlabs Results
LAUNCHED 2012
INVESTED IN
12COMPANIES
CASH TO
COMPANIES $500,000
1st COHORT
75% of the companies raised f...
Raised $300,000
Raised $150,000
Raised $100,00
Where are the Internet Opportunities in Ukraine?
Upcoming SlideShare
Loading in …5
×

Where are the Internet Opportunities in Ukraine?

757 views
642 views

Published on

Delivered at a Startup conference in Dnepropetrovsk, Ukraine in September 2013

Published in: Technology, Business
0 Comments
2 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
757
On SlideShare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
11
Comments
0
Likes
2
Embeds 0
No embeds

No notes for slide
  • Ustroistvo - device
  • HatseleniKakoypahod
  • ВозможностьNo certifirovat & pay NDS
  • ЮвелирныеNabor
  • Лидерискусство
  • ПрисутствиеSkip opp’s
  • cannibalize
  • миф
  • обновлять навыки
  • ключевых игроков
  • I named only 7 but there are lots of spaces openZanimatetimesto
  • zayavka
  • утверждать
  • Where are the Internet Opportunities in Ukraine?

    1. 1. Where are the Opportunities in Ukraine’s Internet Market? By Ken Leaver Dnepropetrovsk Startup Event September 2013
    2. 2. What spheres are interesting in Ukraine? So many options… how to choose?
    3. 3. First examine some of the global trends 1. Mobile taking off In 2013, mobile devices will pass PCs to be most common Web access tools. By 2015, over 80% of handsets in mature markets will be smart phones. Source: Forbes.com, “Top 10 Strategic Technology Trends for 2013” 2. Social networks becoming a standard way of communicating Everyone is on social networks. Now businesses are figuring out how to make money off them.
    4. 4. A few more… Greater personalization of Internet products and services than ever before. Source: Forbes.com, “Top 10 Strategic Technology Trends for 2013” Cloud will be center of our digital lives. Synch across devices. Services become more important. 4. Personal Cloud3. Big data opening new opportunities
    5. 5. Some of the trends in Ukraine 1. People getting more accustomed to purchasing and paying online Less fear associated with buying online. Paying by cards and electronic wallets becoming less of a barrier. 2. Large online shops are scaling and getting into more categories Successful first movers like Rozetka are following the Amazon “own everything” approach
    6. 6. So if you’re going to start a new Internet business in Ukraine, what do you do? These are the 3 questions I will cover today!
    7. 7. Global or Local Model? Look at the landscape first. Global Opportunities Local Opportunities (Just Ukraine or CIS) • Strong technical talent that is less expensive than the west • BUT mainly 1st generation entrepreneurs (US = 3rd / 4th gen) • Language / cultural / immigration barrier = difficult to distribute in US & Europe • Successes will be highly engineered products (think Viewdle) • Market still far from saturated in most areas • Western Internet co’s not very present yet in Ukraine and unlikely to be in near future • Market is still small, but this also makes it cheaper to start • Marketing (eg. Adword) is 5-10x cheaper than in the US
    8. 8. Local or Global Model? Also look at yourself. Have you done an Internet project before? Is your product/idea in an area where there is a lot of western competitors? Do you have a team that can compete against experienced US/European teams? Yes No Yes No No Yes
    9. 9. E-Commerce: Overview The big opportunities are already occupied by big players Requires relatively large funding Import problems in Ukraine make certain models very difficult The Opportunity: 1. Domestic goods (no import) 2. Niche goods of high quality 3. Direct to customer shipment from abroad Selling products from China is already too crowded 1st Industry
    10. 10. eCommerce models to consider Fab BlueNile • Groupon-style emails • Focus on style & taste • Difficult-to-find products from small companies • Huge assortment • Strong service • Big investment in brand 1st Industry
    11. 11. Marketplaces: Overview Definition = lots of buyers and sellers One player typically wins and others lose. That single player tends to just grow and grow with time. Some models being done by international players already (eg. AirBnB) The Opportunity: Niche opportunities (eg. arts & crafts) Services (eg. TaskRabbit) 2nd Industry
    12. 12. Marketplace models to consider Houzz Etsy • Home remodeling is very fragmented (lots of small companies) • Typical marketing channels not very effective • Reviews are very important to purchase decision • Also very fragmented merchants • The story of the maker/seller often an important component of purchase decision 2nd Industry
    13. 13. Travel: Overview International players currently dominate (eg. Booking.com, OneTwoTrip) Difficult for a Ukrainian startup to compete with these international titans on the standard models Need to focus on models where having a local presence is a key success factor The Opportunity: 1. Online travel agency model 2. Last minute hotel bookings that require signing local hotels 3. High End travel 3rd Industry
    14. 14. Travel Models to Consider Hotel Urbano Hotel Tonight • Online travel agency = combination of physical presence + huge email base for lead generation 3rd Industry • Sell hotel rooms the night before for deep discount = difficult for Booking & Expedia due to existing business
    15. 15. Mobile Apps: Overview 1m+ apps on the appstore = Tons of competition. Tough to be found. High drop off rates after install. Need clear, proven way of monetizing. The Opportunity: 1. Focus only on models that have proven themselves in the west 2. Easier compared to other models to tap entire Russian-speaking region High user acquisition costs / virality is often a myth. Ukraine = low smart phone penetration 4th Industry
    16. 16. Mobile App Models to Consider Uber Yelp 4th Industry • Yelp model still up for grabs in Ukraine as no clear leader • A clear long-term successful model • Clear efficiency & customer experience improvement over current taxi system • Uber, Lyft, Hailo and others scaling globally quickly, but will be a few years before they arrive in Ukraine
    17. 17. SAAS: Overview International players quite experienced at this point but focused on own markets Easier to focus on the regional / local market If focused on global market than choose a niche you understand very well (ie. have worked in it) The Opportunity: 1. Focus on proven areas where int’l products are too expensive or poorly localized 2. Focus on Russian-speaking region Need to find the pain points of large, local Internet companies 5th Industry
    18. 18. SAAS Models to Consider CureBit Bizible 5th Industry • Allows you to know the source of all your customers (PPC, Organic, Email) and their behavior in your site • Ukrainian eCom companies all working to improve the efficiency of their marketing spend • A clear benefit to eCom companies as they get 5-10% sales lift with no investment
    19. 19. Education: Overview Most agree the current education model is not effective. Especially in CIS. Many professionals need to update their skills on nights/weekends. The Opportunity: 1. Focus on localizing proven global models 2. Content generation is expensive. Need to license. Most global models not paying much attention to Russian-speaking market so far 6th Industry
    20. 20. Education Models to Consider Lynda.com 6th Industry Eduson.tv • Creating high quality content in- house and selling it many times • Completely flexible to student as to when to study and what to study • Paying for short courses from well known professors / experts • Licensing of content • Pay “a la carte” for specific classes
    21. 21. Financial: Overview Financial services improving at an very rapid pace globally Key players are still banks but online players making key inroads The Opportunity: 1. Peer-to-Peer lending 2. Online investments 3. Online banking pureplay Ukraine is still about 5+ years behind the West… 7th Industry
    22. 22. Financial Models to Consider Wealthfront.com Tinkoff 7th Industry • Ukrainians still mainly investing in real estate • Investing in stocks still perceived as extremely risky, but much more liquid • Wealthfront provides a safe and easy model that requires no financial expertise • Pure play online banks are already a fairly proven model • Still no “Ukrainian Tinkoff”
    23. 23. So many spaces still up for grabs in Ukraine Eastlabs wants to help entrepreneurs build the future
    24. 24. Eastlabs Unique Value Proposition Investment Eastlabs is the only full- scope startup accelerator in the region with the ability to offer seed investment and beyond. Ecosystem Eastlabs offers a collaborative office space in central Kiev, where driven, talented startup team members can interact with other like- minded startupers. Comprehensive Mentorship Eastlabs combines full- time, dedicated mentorship with expertise from an extensive pool of entrepreneurs, investors, and specialists. Eastone Resources Eastlabs is backed by one of the strongest holdings in Eastern Europe, and has close ties with the Viktor Pinchuk Foundation charity organization.
    25. 25. Online Application to Eastlabs Day 1 Day 7 Day 30 Day 45 Day 60 Prepare Pitch Presentation Review by Investment Committee Term Sheet Signing Acceptance to Eastlabs Eastlabs Incubation Program Day 15 Interview with Eastlabs Partners Selection Process
    26. 26. Incubation Program Startup Basics Week 1 Week 2 Week 4 Week 5 Week 6 Value Proposition Business Model Prototyping Financial Modeling User Experience Testing Legal Executive Summary Grow Audience Week 3 Business Model Growth Model Week 7 Week 8 Pivot VC Mechanics Week 9 Week 10 Week 12 Week 13 Week 14 Pitching E-security Lessons from Failure Negotiations Financial Modeling Pitching Getting Investments Pitching Grow Audience Receive Additional Investment Week 11 Pitching Positioning Week 15 Week 16 Success Metrics Marketing Marketing w/o Money Partnerships Growth Management Pitching Life after Eastlabs Define Build Validate Sell Test
    27. 27. The Team Eveline Buchatskiy Hrish LotlikarKen Leaver
    28. 28. Our Portfolio
    29. 29. Eastlabs Results LAUNCHED 2012 INVESTED IN 12COMPANIES CASH TO COMPANIES $500,000 1st COHORT 75% of the companies raised funds MENTORS 80
    30. 30. Raised $300,000 Raised $150,000 Raised $100,00

    ×