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Ukraine’s Tech Ecosystem at a Glance
This document provides an overview of Ukraine's growing tech ecosystem. It discusses Ukraine's status as a digital state with nearly universal public services online. Ukraine has over 5000 IT companies and 240,000 IT specialists, representing 10% of the country's GDP. Kyiv is ranked as the number one outsourcing destination in Eastern Europe. Ukraine also has initiatives like DIIA City that provide a special legal framework to attract IT businesses with benefits like tax incentives and IP protections. The document highlights several Ukrainian tech companies that have found success, as well as organizations supporting the ecosystem like the European Business Association and Ukrainian Startup Fund. It argues that Ukraine has strong potential for future growth in the tech sector due to its talented workforce.
Ukraine’s Tech Ecosystem at a Glance
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- 2. Oleksandr Bornyakov, Deputy Ministeron IT Development at Ministry of Digital Transformation UKRAINE’S TECH ECOSYSTEM AT A GLANCE HIDDEN GEM:
- 3. Inna Ohnivets, Ambassador ofUkraine in the Portuguese Republic UKRAINE’S TECH ECOSYSTEM AT A GLANCE HIDDEN GEM:
- 4. Yuliya Melnyk, Deputy director ofEuropean Business Association UKRAINE’S TECH ECOSYSTEM AT A GLANCE HIDDEN GEM:
- 5. UKRAINE’S TECH ECOSYSTEM AT AGLANCE HIDDEN GEM: European Business Association 22 years in Ukraine 1000 businesses around 59 countries from 24 advocacy committees supports viable taxes for global industry competition and development of new labour code, develops effective system of IT education, etc. IT Committee
- 6. Pavlo Kartashov, Director ofUkrainian Startup Fund UKRAINE’S TECH ECOSYSTEM AT A GLANCE HIDDEN GEM:
- 7. UKRAINE’S TECH ECOSYSTEM AT AGLANCE Provides capital of $95,000 to early-stage startups in the form of non-equity grants Ukrainian Startup Fund > 6 000 000 $ in total funded 3700+ Applications received 250+ Startups funded > 100 Experts 32 Pitch Days conducted 400+ Startups pitched 9 Accredited Accelerators
- 8. UKRAINE — IT HUBOF EUROPE
- 9. UKRAINE IS TURNINGINTO DIGITAL STATE 100% of public services are available to citizens and businesses online 95% of the population, social facilities and major highways are covered with high-speed Internet 6 million Ukrainians have upgraded their digital skills 10% share of IT in the country's GDP
- 10. UKRAINE HAS GROWING ANDPROMISING IT MARKET around 5000 IT companies more than 240 000 IT specialists 40 investments funds #1 in Eastern Europe by the number of outsourced developers
- 11. Pool of talentedIT specialists who work in IT companies of Fortune 500 list who build startups that become unicorns PEOPLE ARE THE GREATEST VALUE OF UKRAINIAN IT
- 12. special taxation frameworkfor the residents DIIA CITY IS A SPECIAL LEGAL FRAMEWORK FOR THE IT INDUSTRY flexible employment conditions for IT specialists opportunities for foreign venture capital investment guarantees on the protection of IP rights fair environment for the business operation
- 13. DIIA CITY TAXATION SYSTEM Employmenttaxes: military collection 1,5% single social contribution 22% of minimum wage (approx. $50) withholding tax 9% PIT 5% Taxes for company and its shareholders: income tax 18% or tax on individual income in the form of dividends 0% To stimulate angel investment: tax discount (for PIT) on the amount of investment in Ukrainian startups
- 14. convertible loan WE SPEAKTHE SAME LANGUAGE WITH VENTURE CAPITAL WORLD shareholders' agreement liquidation preference option warranties & indemnities liquidated damages Intellectual property protection Diia City provides protection of IP rights for IT companies: property rights to computer programs and databases created as part of official works will belong to the employer
- 15. HIDDEN GEM SIGMA SOFTWARE: NORDICTRADITIONS UKRAINIAN SPIRIT
- 16. OUR CLIENTS ABOUTUS …"thinkers" not only "doers“ …Helping us rapidly scale up novel solutions… …Hookup for the best talent you could ever hope to hire… …total confidence in Sigma's ability to solve hard problems… WHY SIGMA SOFTWARE
- 17. VENTURE ECOSYSTEM BUILDER: $6,5M INVESTED IN STARTUPS HIDDEN GEM: SIGMA SOFTWARE
- 18. $65+ M $50 M $4.4 B $4.48 B 2FTE 20 FTE 42 FTE 59 FTE 2012 2014 20 15 2016 2017 | 2018 + | 2010 FROM IDEA TO $4.48 B HIDDEN GEM: SIGMA SOFTWARE
- 19. DanAds gives allglobal media owners their own fully automated, and white-labeled self-serve infrastructure that enables all departments to focus on revenue-driven tasks instead of manual administration. HIDDEN GEM: SIGMA SOFTWARE AdTech leading provider of self-serve publishing technology
- 20. • 1M revenueafter just 5 months of commercial availability, and within a year of launch • $7,5 M of investments • Over 4,8 B malicious ads cut off yearly Anti-malicious advertising Security solution by Sigma Software and our American partners #1 startup in Baltimore, USA, in 2019 HIDDEN GEM: SIGMA SOFTWARE
- 21. STARTUPS GROWTH CASES COMPANYFOUNDED EXITED 2008 2011 2013 2018 2014 2016 2015 - 2017 - 2017 2019 COMPANY FOUNDED EXITED 2016 2020 2016 - 2016 - 2017 - 2017 - HIDDEN GEM: SIGMA SOFTWARE
- 22. PARTNER PRODUCTS PORTFOLIO HIDDENGEM: SIGMA SOFTWARE
- 23. AUTOMOTIVE GAMING / E-LEARNING ADVERTISING/ MEDIA HEALTHCARE / PHARMACEUTICAL CONSTRUCTION / REAL ESTATE AVIATION / TRANSPORTATION TELECOM FINANCE / BANKING ENERGY CYBERSECURITY DOMAIN EXPERTISE Israeli product – Gartner magic quadrant leader for application security testing HIDDEN GEM: SIGMA SOFTWARE
- 24. 1500+ SOFTWARE EXPERTS AMONG WORLD’S TOP100 OUTSOURCING COMPANIES BY IAOP SINCE 2016 20 YEARS OF GLOBAL DELIVERY EXPERIENCE
- 25. GROW WITH SIGMASOFTWARE Get Technical Expertise Build MVP Solution Use Business Advice Raise Money and Grow
- 26. THANK YOU! OBRIGADO! ДЯКУЮ! ValeryKrasovsky CEO & Co-Founder of Sigma Software Group valery.krasovsky@sigma.software
- 27. HIDDEN GEM: ROCKET WEBSUMMIT 2021 LISBON
- 28. UKRAINE’S TECH ECOSYSTEM AT AGLANCE HIDDEN GEM: DELIVERY SERVICE FROM UKRAINE
- 29. FOOD DELIVERY INEUROPE $40B+ (60%+ YoY)
- 30. ROCKET IN NUMBERS 4M+ 10,000+ 6 6countries Downloads of the Rocket app in under 2 years Couriers rightly-knit community Own dark kitchen brands Ukraine, Cyprus, Netherlands, France, Greece, Portugal 18M+ km or 460x around Earth done by Rocket couriers 7,000+ Partners connected to the platform
- 31. -> TOP 7DOWNLOADED APP
- 32. UKRAINE’S TECH ECOSYSTEM AT AGLANCE HIDDEN GEM: IT IS NOT ROCKET SCIENCE…
- 33. restaurant pays commission+ (optionally) covers part of the promotion (e.g. delivery fee) €7.50 + €1.00 3rd party brand sponsors part of promotion €1.00 Rachel pays for meals, groceries + delivery fee €25.00 + €2.00 ON DEPARTMENT COURIER courier-partner reward €12.00/hr /3 orders=€4.00 Rocket pays restaurants revenue, they earned selling in Rocket app €25.00 RACHEL BUYS FOOD, ROCKET DELIVERS FAST
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- 35. Skyrocketed during the “CovidSpring’20” and managed to keep and grow the market share CRACK THE COMPETITION ON YOUR HOME TURF DOWNLOADS SHARE
- 36. CONQUER EUROPE WITHA STRONG START
- 37. UKRAINE’S TECH ECOSYSTEM AT AGLANCE HIDDEN GEM: … OR MAYBE IT’S A SCIENCE AFTER ALL
- 38. GEOSERVICE ”HERMES” Own Geoservicebased on the open-source routing machine give the possibility to be adaptive in each country and region and freedom from vendor lock. Hermes can match tens and hundreds of points in one route, find the fast way and how we can combine a few orders. It can work with traffic, types of vehicles and set geofences based on trip time.
- 39. ● Own geo-service(API with any map service): taking into account real road conditions ● Precipitation and weather conditions are embedded into forecasting model ● Direct hiring/freelance hybrid models ● Building a community of couriers THIS IS FIRST OF ALL A LOGISTICS BUSINESS AVERAGE STARTS PER DELIVERY AREA PER HOUR
- 40. CONTINUED COMMITMENT TOBEST-IN-CLASS UX For end-users For couriers For merchants x3 x3 = 9
- 41. POWERFUL MARKETING ANDCOMMUNICATIONS
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- 46. 3000+ EMPLOYEES or 15+ filled Boeing737 2,600,000 USERS 1400+ TRANSACTIONS Per minute 14 COUNTRIES > Main Metrics
- 47. > Countries Cyprus Headquarters, B2C Ukraine B2B,B2C, R&D Belarus B2C Kazakhstan B2C Tajikistan B2C UK Franchise Tanzania Franchise +Other Franchise Countries
- 48. > Global Partnerships JuventusFC Ultimate Fighting Championship Leicester FC Everton FC Chelsea FC
- 49. UKRAINIAN FINTECHS ARE BOOSTINGTHE GLOBAL ECONOMY: THIS IS HOW AND WHY. Co-Founder & CEO Valeria Vahorovska
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- 51. Apple Pay &Google Pay in Ukraine Apple Pay/ Google Pay/ Card utilisation (%) ApplePay/Google Pay conversion
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- 54. Fondy is aone-stop payment platform designed to simplify local and cross-border payments and payouts for online businesses of any size We are the FinTech partner you’re looking for to enter Ukraine
- 55. Most popular myths aboutUkrainian startups UKRAINE’S TECH ECOSYSTEM AT A GLANCE HIDDEN GEM: Oleksii Vitchenko Founder & CEO Digital Future
- 56. UKRAINE’S TECH ECOSYSTEM AT AGLANCE HIDDEN GEM: Oleksii Vitchenko • 20+ years in tech entrepreneurship: profitable IT businesses and projects from scratch on highly competitive US and European markets • Founder of Digital Future - a Ukraine-born VC firm that invests at seed and early stage in international teams targeting global markets • In 2015, was recognized as the most influential Ukrainian investor
- 57. UKRAINE’S TECH ECOSYSTEMAT A GLANCE HIDDEN GEM: Myth 1: Ukrainians don’t speak English
- 58. UKRAINE’S TECH ECOSYSTEMAT A GLANCE HIDDEN GEM: Myth 2: too local
- 59. UKRAINE’S TECH ECOSYSTEMAT A GLANCE HIDDEN GEM: Myth 3: corruption risks
- 60. UKRAINE’S TECH ECOSYSTEMAT A GLANCE HIDDEN GEM: Myth 4: no entrepreneurial culture
- 61. UKRAINE’S TECH ECOSYSTEMAT A GLANCE HIDDEN GEM: Myth 5: no successful cases* *from investor’s perspective
- 62. UKRAINE’S TECH ECOSYSTEMAT A GLANCE HIDDEN GEM: Myth 6: no return for my investment
- 63. UKRAINE’S TECH ECOSYSTEM AT AGLANCE HIDDEN GEM: Digital Future (founded in 2014) 31 portfolio companies 5 investments in 2021 7 exits
- 64. UKRAINE’S TECH ECOSYSTEMAT A GLANCE HIDDEN GEM: International viewpoint Ukrainian talent Opportunities on the horizon for global businesses Jan Webering CEO, Avenga Why Ukraine is an appealing destination
- 65. Why Ukraine is anappealing destination HIDDEN GEM: Sustainable growth: Ranked 64th in the 2020 WB’s rating for Ease of Doing Business Macroeconomic stability: Ranked 1st for tech outsourcing / software development in the CEE region by CEEOA, Outsourcing Journal, and Scheider Group Rated in top 30 destinations for outsourcing in the world by Gartner. Ease of doing business: On-going deregulation, corporate governance initiatives, supporting innovation Rated 46th for adoption of innovations by Bloomberg Innovation Index UKRAINE’S TECH ECOSYSTEM AT A GLANCE
- 66. Ukrainian talent, a techgem - a combo of geek and growth cultures UKRAINE’S TECH ECOSYSTEM AT A GLANCE HIDDEN GEM: IT companies in Ukraine 5,000 R&D centers, icl. Google’s, Samsung’s, Amazon’s, Boeing’s, Deutsche Bank’s 110 a volume of Ukrainian IT exports, with an increase of 20.44% compared to 2019 $5 billion
- 67. Which opportunities are on thehorizon for growth UKRAINE’S TECH ECOSYSTEM AT A GLANCE HIDDEN GEM: Extensive support of the EU model of equality and democracy, of values and future development 40.5% overall share of women in leadership positions Ranked 74th of 189 countries by Human Development Index with high standard of human development Building business models that respond to modern economy based on: ● digitalization and artificial intelligence ● behavioral economics & motivation ● information asymmetry & productivity ● moral risks & signalling, etc.
- 68. UKRAINE’S TECH ECOSYSTEM AT AGLANCE HIDDEN GEM: Dominique Piotet