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Rise of the Technology Nation:
Ukraine tech key findings and sector highlights
Yevgen Sysoyev
Managing Partner
AVentures Capital
ys@aventurescapital.com
Source: High-Tech Ukraine 2015
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
Snapchat acquired startup Looksery for $150MM
September 15, 2015
Looksery – a two
and a half year-
old company
from Odessa,
Ukraine
Invest Ukraine? IT Sector? now?
Georges Soros said: yes, yes, yes
November 18, 2015
So what is going on? Rise of Technology Nation
December 16, 2015
http://www.slideshare.net/YevgenSysoyev/ukraine-rise-of-a-technology-nation
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”
Ukraine IT sector delivers value to fortune 500 companies & beyond…
IT COMPANY
BASED 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
…to US & EU largest corporations, tech companies and startups
IT COMPANY
BASED IN UKRAINE SELECTED CLIENTS
Those international players who come for R&D in Ukraine,
remain long-term partners and happy customers
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 Ukraine
Ukraine can still offer large pool of engineers for new R&D centers
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…
With many of these startups generating 99% revenue globally
and having HQ in USA
DESCRIPTION
REVENUE
STRUCTURE
R&D OFFICE
HQ AND
SALES 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 of
software-defined storage for
Hyper-V Microsoft
environments
99% - global markets
1% - Ukrainian market
99% - global markets
1% - Ukrainian market
99,9% - global markets
0,1% - 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
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
… 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
…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 with
the most engineering
graduates
TOP 3 by earnings
of 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
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%
Lviv
Kyiv
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
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, 2016
Target Audience
• Technology and business leaders of 

US-based companies interested in working with global 

technology expert;
• Ukrainian based technology 

companies interested in US market exposure
Questions
Zhenya Rozinskiy 818-272-8232 zhenya@mirigos.com

Nick Bilogorskiy 408-203-4323 nick@novaukraine.org
Bridging Ukrainian IT sector with partners, investors and customers in Silicon
Valley
Global World Tech Conference: join us!
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?
Contacts
Yevgen Sysoyev
Managing Partner
AVentures Capital
ys@aventurescapital.com
@YevgenSysoyev
http://www.slideshare.net/YevgenSysoyev
ONE-STOP
ROYALTY-FREE
CONTENT SOLUTION
Growing Global from Ukraine
Company snapshot
31
• Fast growing microstock agency since founding
in 2009
• >250 employees in New York, Kiev and sales
offices in Milan, Warsaw and Moscow
• Over 40 million of media assets (stock photos,
images and footage)
• 1.5 million of digital content added monthly
• Have customers in every single country
Royalty-free stock photos, vector
images and footage marketplace
Application for uploading mobile
content
Launched in March 2013
O n l i n e m a g a z i n e a b o u t
photography as a business
Launched in 2014
KEY FACTS
Business model: marketplace
32
50K+ 3M+
Adds mobile content Adds customers and awareness
MEMBERS
Market distribution
33
Indoor and
Outdoor
advertising
TV
commercials
Packaging
Print-on-
Demand
Media
Publication
s
Book
covers
Presentation
s… and many more
NOTABLE CUSTOMERS & PARTNERS:
Our journey
34
2009 2010 2011 2012 2013 2014 2015 2016
1M images
Editorial
5M images
20M files
4k video
40M files
Footage
11M files
30M files Audio
Depositphotos
was founded
Free Trial
Pay-by-SMS
$3M investment
by TMT
Investments
1M members
Launch of
Clashot
3M members
in 192
countries
API
iOS and Android apps
Bird In Flight
more to
come…
Our Team
3537
ELENA FLANAGAN-EISTER
CEO
VADIM NEKHAI
VP of Global
Business Development
MARIA BARSUK
CFO
New York, USA
USA HQ
Kiev, Ukraine
European HQ
Warsaw, Poland
Sales Office
Milan, Italy
Sales Office
Moscow, Russia
Sales Office
OUR SALES OFFICES :
DMITRY SERGEEV
Founder & COO
New York, USA
Sales office
ANNA ZAKHARCHENKO
Head of Sales
Contact information
36
http://depositphotos.com/
Vadim Nekhai
VP, Global Business
Development
vadim@depositphotos.com
39
What is IT Cluster?
40
41
Cluster is an organism that ensures the region's eco system and
competitiveness of its key participants.
“An establishment of common rules of the game, an impact on regulatory
policy; joint marketing (especially in overseas markets); formation of social
demand for education; transparent quality standards, arbitration courts and
much more – is the result of cooperation in clusters” (c) V. Pekar
42
Entry Point to Odessa IT
43
IT Companies in Odessa
44
Why Odessa?
45
46
Startups Born in Odessa
47
Website: http://it-cluster.od.ua
Facebook: facebook.com/IT.Cluster.Odessa/
Contact Lyuba at lyuba@uareformers.com
Razom/IT presents Ukraine: Rise of Tech Nation
Razom/IT presents Ukraine: Rise of Tech Nation

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Razom/IT presents Ukraine: Rise of Tech Nation

  • 1.
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  • 8. Rise of the Technology Nation: Ukraine tech key findings and sector highlights Yevgen Sysoyev Managing Partner AVentures Capital ys@aventurescapital.com
  • 10. 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
  • 11. Snapchat acquired startup Looksery for $150MM September 15, 2015 Looksery – a two and a half year- old company from Odessa, Ukraine
  • 12. Invest Ukraine? IT Sector? now? Georges Soros said: yes, yes, yes November 18, 2015
  • 13. So what is going on? Rise of Technology Nation December 16, 2015 http://www.slideshare.net/YevgenSysoyev/ukraine-rise-of-a-technology-nation
  • 14. 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”
  • 15.
  • 16. Ukraine IT sector delivers value to fortune 500 companies & beyond… IT COMPANY BASED 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
  • 17. …to US & EU largest corporations, tech companies and startups IT COMPANY BASED IN UKRAINE SELECTED CLIENTS Those international players who come for R&D in Ukraine, remain long-term partners and happy customers
  • 18. 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 Ukraine Ukraine can still offer large pool of engineers for new R&D centers
  • 19. 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…
  • 20. With many of these startups generating 99% revenue globally and having HQ in USA DESCRIPTION REVENUE STRUCTURE R&D OFFICE HQ AND SALES 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 of software-defined storage for Hyper-V Microsoft environments 99% - global markets 1% - Ukrainian market 99% - global markets 1% - Ukrainian market 99,9% - global markets 0,1% - 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
  • 21. 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
  • 22. … 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
  • 23. …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 with the most engineering graduates TOP 3 by earnings of 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
  • 24. 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% Lviv Kyiv 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
  • 25. 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!
  • 26. What Global conference to promote Ukrainian Technology Ecosystem Two tracks: Startups & Distributed Development Where Silicon Valley, San Francisco Bay Area When April 21, 2016 Target Audience • Technology and business leaders of 
 US-based companies interested in working with global 
 technology expert; • Ukrainian based technology 
 companies interested in US market exposure Questions Zhenya Rozinskiy 818-272-8232 zhenya@mirigos.com
 Nick Bilogorskiy 408-203-4323 nick@novaukraine.org Bridging Ukrainian IT sector with partners, investors and customers in Silicon Valley Global World Tech Conference: join us!
  • 27. 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?
  • 28. Contacts Yevgen Sysoyev Managing Partner AVentures Capital ys@aventurescapital.com @YevgenSysoyev http://www.slideshare.net/YevgenSysoyev
  • 29.
  • 31. Company snapshot 31 • Fast growing microstock agency since founding in 2009 • >250 employees in New York, Kiev and sales offices in Milan, Warsaw and Moscow • Over 40 million of media assets (stock photos, images and footage) • 1.5 million of digital content added monthly • Have customers in every single country Royalty-free stock photos, vector images and footage marketplace Application for uploading mobile content Launched in March 2013 O n l i n e m a g a z i n e a b o u t photography as a business Launched in 2014 KEY FACTS
  • 32. Business model: marketplace 32 50K+ 3M+ Adds mobile content Adds customers and awareness MEMBERS
  • 34. Our journey 34 2009 2010 2011 2012 2013 2014 2015 2016 1M images Editorial 5M images 20M files 4k video 40M files Footage 11M files 30M files Audio Depositphotos was founded Free Trial Pay-by-SMS $3M investment by TMT Investments 1M members Launch of Clashot 3M members in 192 countries API iOS and Android apps Bird In Flight more to come…
  • 35. Our Team 3537 ELENA FLANAGAN-EISTER CEO VADIM NEKHAI VP of Global Business Development MARIA BARSUK CFO New York, USA USA HQ Kiev, Ukraine European HQ Warsaw, Poland Sales Office Milan, Italy Sales Office Moscow, Russia Sales Office OUR SALES OFFICES : DMITRY SERGEEV Founder & COO New York, USA Sales office ANNA ZAKHARCHENKO Head of Sales
  • 36. Contact information 36 http://depositphotos.com/ Vadim Nekhai VP, Global Business Development vadim@depositphotos.com
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  • 40. What is IT Cluster? 40
  • 41. 41 Cluster is an organism that ensures the region's eco system and competitiveness of its key participants. “An establishment of common rules of the game, an impact on regulatory policy; joint marketing (especially in overseas markets); formation of social demand for education; transparent quality standards, arbitration courts and much more – is the result of cooperation in clusters” (c) V. Pekar
  • 42. 42 Entry Point to Odessa IT
  • 45. 45