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Why war is a proper time to launch your own startup?


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Is war a proper time to create your own business? Aviram Eisenberg in his presentation at StartUpDnepr proved on Israel's example that war is not an obstacle to start your company. Moreover, any difficult situation brings opportunities: the development of fields like military and security software, medical eqipment become not only high-priority, but the question of life and death.

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Why war is a proper time to launch your own startup?

  1. 1. Why war is a proper time to launch your own startup? Aviram Eisenberg, Ignite Ltd StartupDnepr, Dnipropetrovsk 2014
  2. 2. Are you Crazy? “A lot of people ask me if I am crazy?“ “You are living in Ukraine? In these times???” Well, I live in Israel, we are kinda used to state of war… I am just replacing this: With this: 2
  3. 3. The First Time I Came to Ukraine… 8 Years ago I came to Ukraine for the first time… I put on a nice suit (so I thought) and went shopping for a good development partner Everybody was talking with me about the IT Industry (and I thought this “High-Tech” with Russian accent) IT = Selling Development Services High-Tech = Selling Developed Products How do we turn the Ukrainian IT industry to High-Tech? (and actually become a startup nation) 3
  4. 4. About Me Father of 3 wonderful children High-Tech professional for the last 30 years - computer geek in my teenage days - platoon commander in the Army Intelligence (computer related) - computer Science Graduate from the Technion - chief Architect at Mind CTI - founder and CEO Of Ignite – a global IT company - chairman of the Israeli R&D Managers forum Lives in Kiev (Ukraine is my second home!) 4
  5. 5. 5 Country History 66 years 22,072 km2 23 years 603,628 km2 Age Territory Population 8,14 mln 44,29 mln
  6. 6. 6 Israel – the land of the entrepreneurial spirit Wars 10 wars (every 5-10 years) 1947-1949, 1956, 1967, 1967-1970, 1973, 1982-2000, 2008-2009, 2010, 2012, 2014 Daily living under possible terrorist attacks now High level of risk tolerance! Just remember the proverb, “the entrepreneur that died without ever going bankrupt had a premature death…”
  7. 7. Israel is the Startup Nation Tel-Aviv comes is #2 in the top startup ecosystems in the world 450-500 startups are established every year each month 10 companies move to New York distributed and powerful angel investors network most venture capital per capita: 2.5 times more than the U.S. and 30 times more than Europe 7
  8. 8. Israel - Silicon Valley in the East spend the highest percentage of GDP on scientific R&D: 4.4% compared to 2.7% for the United States R&D centers of Intel, Google, Microsoft, Facebook, IBM, etc. 19 companies listed on London Stock Exchange combined market capitalization on LSEG $6.9 billion 62 companies are traded on NASDAQ, totaling $ 36 billion 8
  9. 9. How Did it Start? But, it was not always like that! 30 years ago Israel’s was very much like Ukraine – selling IT services to the USA The Israeli Army produced excellent developers International companies came to shop for good (and cheap) developers and established branches (Motorola, then Intel, them Microsoft…) With time, developers left the big companies and started small innovative product companies in the same vertical Investor-friendly government policy brought more big companies 9
  10. 10. How Did it Start? Few startups were sold to international companies Then came the VCs and the private investors And the rest is history… 10
  11. 11. 11 Startup ecosystems in numbers 70 2000 7 50 500 + VC funds Angel investors Active startups 5000 +
  12. 12. 12 Areas of IT Expertise Israel Homeland Security - military software - airport and objects - personal surveillance control Cyber Telecom Medical equipment industry Scientific researches Gambling and Forex Ukraine Programming frameworks and platforms Computer games ….. It is your turn to continue the list!
  13. 13. 13 War Factors Low psychological threshold to risks of business failure Boy, you are alive! And someone is not… Strong desire to control your own fate No fate but what we make (Terminator 2) Individualism The curse and the blessing of Ukraine War creates opportunities… The cycle of nature High level of mobility War stirs things…a stirring is what you need to generate something new It is time to get out of comfort zone and do something useful, solve someone's problem in a quality way and money will come later!
  14. 14. 14 Challenges for Ukraine Corruption elimination Build new and well paid army forces, police, court judges, prosecutors Guaranteed equity rights Open registry lists and cadasters for all equity rights and assets (land, real estate, stocks, financial obligations, etc.) Education system reform Decentralized, more privately held kindergartens, schools, universities curriculums created by professional communities Transparent and low-level of bureaucracy E-government, ease of doing business
  15. 15. 15 Ukraine’s Strengths High motivation for High Education Hunger to Succeed Individualistic and entrepreneurial spirit
  16. 16. 16 Conclusion It's YOUR time to take action.. Just DO something! 300 kg carrying robot for ATO & Army 1 month project from Lviv
  17. 17. 17 Questions? “no pain, no gain, no champagne.” +38 0412 46-61-79