This document discusses the growth of the Ukrainian software technology industry. It notes that Ukraine has over 50,000 software engineers, the largest number in Central and Eastern Europe, and that many Fortune 500 companies outsource software development to Ukraine. The IT sector now accounts for around 3% of Ukraine's GDP and is the fastest growing sector, transforming the Ukrainian economy. Many Ukrainian startups are also achieving international success. The document argues that Ukraine's large, skilled IT workforce is delivering high quality software globally and playing an important role in the world economy.

1. UKRAINIAN SOFTWARE TECH:
Delivering value to global knowledge
Yevgen Sysoyev
Managing Partner
AVentures Capital
ys@aventurescapital.com

2. Ukrainian software tech is a big thing…
1
#1 workforce of top notch software engineers within CEE
Increasing number of Fortune 500 companies directly or
indirectly have software development shop in Ukraine
IT services exports account for ca. 40% of all exports from
Ukraine to the US = #1 export item to the US
Ukrainian IT accounts for ca. 3% of total GDP and employs
100,000 professionals, including 50,000 software engineers
IT is the fastest growing sector in Ukraine and on track to
transform the structure of the Ukrainian economy
A key element emerged in Ukraine over the last decade, despite all the odds with
governments, revolutions, neighboring countries, ups and downs in the economy

3. Despite all the odds, Ukraine software tech miracle is growing fast in 2014-15
2
Yes, it could. Think again. Ukraine software tech industry is booming these
days and our country is increasing its role in the global knowledge economy
November 2014 December 2014

4. Ukraine IT sector delivers value to fortune 500 companies and beyond…
3
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 as of highest world class quality and certainly very competitive compared to
rest of world

5. …to US & EU largest corporations, tech companies and startups
4
IT COMPANY
BASED IN UKRAINE SELECTED CLIENTS
Those international players who come for R&D in Ukraine, remain long term partners and happy customers

6. While many international companies even set up R&D centers in Ukraine
5
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

7. Ever growing number of Ukrainian startups become successful internationally
6
VERTICAL SELECTED COMPANIES
Web
Mobile
Enterprise
Decade ago, to succeed in US market, one had to leave Ukraine. So many Ukrainians left to
US, Canada, Israel where they built large tech businesses
These days more and more talent stays locally while still succeeds in building global tech
business, particularly targeting US market
Appearance of first few Ukrainian “Unicorns” is on a horizon, I start the countdown…

8. With many of these startups generating 99% revenue globally
and having HQ in USA
7
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
4 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

9. Fast developing sector across all dimensions
8
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

10. Strong interest from strategic investors & venture capital funds to
companies with R&D in Ukraine
9
Acquired in 2012
Acquired
Acquired
Invested $100m
Raised follow
on capital

11. X2 stock growth of international companies with software shops in Ukraine
10
EPAM
+168,50%
LXFT
+182,50%
S&P500
+32,03%
Change of stock price since July 5, 2013:
+169% +183% +32%

12. IT sector transforming Ukrainian economy
11
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

13. …and already is part of global tech value chain
12
#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

14. Achieving so much more…together!
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Develop social, culture and economic ties among our countries
Increase cooperation within global tech development value chain
Jointly pursue next generations R&D for emerging technologies
Unleash our common tech companies to compete globally
Leverage our advantages to transform growth and wealth

15. Who are those 50,000 software engineers?
14
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

16. Intro: being a global Ukrainian
UA50.org is a
network of global
Ukrainian doing tech
business. There are
many people like
myself
15
Born in Soviet
Union
Family moved
to Egypt
Returned to Ukraine
after Soviet Union
collapse
Spent summers
in Russia
Wrote first
software:
game Tetris
Quit banking career
& move to Singapore
Career as
a banker
Felt in love
with finance
Moved to Germany
to study math & write
software
Felt in love
with math
MBA at INSEAD
business school
Ukraine startups
going global
First early stage
VC fund in Ukraine
VC in Ukraine
AGE

17. Contacts
Yevgen Sysoyev
Managing Partner
AVentures Capital
ys@aventurescapital.com
@YevgenSysoyev