Razom/IT presents Ukraine: Rise of Tech Nation

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 NationDecember 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%

LvivKyiv

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!

WhatGlobal conference to promote Ukrainian Technology EcosystemTwo tracks: Startups & Distributed DevelopmentWhereSilicon Valley, San Francisco Bay AreaWhenApril 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

QuestionsZhenya Rozinskiy 818-272-8232 zhenya@mirigos.comNick 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

Publications

Book covers

Presentations… 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

APIiOS and Android apps

Bird In Flightmore 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?

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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

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Entry Point to Odessa IT

43

IT Companies in Odessa

44

Why Odessa?

45

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Startups Born in Odessa

47

Website: http://it-cluster.od.ua

Facebook: facebook.com/IT.Cluster.Odessa/

Contact Lyuba at lyuba@uareformers.com