Ukraine’s tech sector is booming but needs awareness and confidence

Despite several turbulent years, Ukraine’s economy is now showing real promise. The country recently received its latest tranche of IMF funding and is making a huge effort to stamp out corruption. With a large base of highly skilled technology professionals and a highly-developed information technology sector, Ukraine’s economy has all the ingredients required to create Europe’s next big technology hub.

Technology is certainly one of the main industries driving Ukraine’s economic growth. The country has a huge number of skilled technology professionals and is already one of Europe’s top outsourcing hubs. Ukraine is home to over 4,100 firms that outsource skills to other countries and it exports approximately $2 billion in software development and service each year. Its sophisticated IT sector offers the highly skilled workforce that is required to create a successful technology hub.

Ukraine also has a burgeoning e-commerce sector. E-commerce Europe (the European association representing e-commerce businesses) states that the country’s online shopping market is worth approximately €1 billion; with a typical annual spend, per shopper, averaging at €286. With a wide consumer base that is willing to spend money online, Ukraine has the market for e-commerce and consumer tech businesses.

The final ingredient that is required to create a successful technology hub is innovation. From my experience of working with businesses in the Ukrainian tech sector, this is something which exists in abundance in Ukraine. It is well-known that programmers who are educated in Ukraine receive world-class teaching and, after graduating, have access to jobs where they can develop their programming skills in the outsourcing sector. With so much talent being nurtured in the technology sector in Ukraine, innovation is available in abundance. Unfortunately, however, domestic opportunities for these entrepreneurs are currently lacking.

Today, we are losing our brightest tech talent to more developed tech start-up markets, including Silicon Valley, London and Tel Aviv. Investor confidence in the Ukrainian market is fragile to say the least, so technology entrepreneurs seek instead to turn their ideas into businesses elsewhere in the world.

So, how should Ukraine encourage and retain its most promising technology entrepreneurs?

The solution is two-fold: increase investor confidence in the Ukrainian technology sector and create awareness of the investment opportunities for Ukrainian entrepreneurs who are running their businesses from Ukraine.

As concerns investment, increasing confidence in Ukraine’s technology market is the key. It is important for the government to highlight Ukraine’s openness to new technology ventures. A great example of this is the recent Twitter exchange between Ukraine’s Prime Minister and Elon Musk which received global attention. This exchange told the world that Ukraine is open for business.

As investors gain confidence in the market, they may choose to embrace the opportunities to invest in low-cost / high yield Ukrainian technology businesses. After all, it is much cheaper to scale a technology business based in Ukraine compared to a business in one of the better-known technology hubs.

Education is hugely important, to increase awareness of the investment opportunities for entrepreneurs in Ukraine, We must ensure that the most promising Ukrainian talent is aware that there are ways to create successful businesses in their own country.

As a venture capitalist, it is my responsibility to consciously invest in businesses with commercial potential but also in businesses that have the potential to change society. It is for this reason that I am so passionate about transforming Ukraine into Europe’s next technology hub.

About author

Stepan Chernovetskyi is the founder and CEO of Chernovetskyi Investment Group, a venture capital firm specialising in funding promising technology businesses based in the CIS region. He began his career at Pravex Bank, where he was finally appointed the Senior Vice President. After that, he became Head of the Supervisory Board of PJSC, a company specialising in real estate investment and construction. Stepan also runs a charity which helps orphans, large families and elderly people in Georgia.

Source: emerging-europe.com

Ukraine tech companies in Toronto to talk business

More than 15 ICT companies from Ukraine available for b2b meetings, looking to forge potential partnerships with Canadian companies

OTTAWA, Ontario, Canada / KYIV, Ukraine – May 18, 2017–Branham Group, together with the Canada-Ukraine Trade and Investment Support (CUTIS) Project, is bringing more than 15 Ukrainian ICT companies to Toronto and setting up introductory one-on-one meetings with Canadian companies interested in doing business with them.

Ukraine’s goal is to tell the world that it is open for business and has a lot offer, according to Wayne Gudbranson, Branham Group CEO.

“I have personally seen this in the tech area. In fact, we are very excited about connecting the Branham300 ecosystem of leading companies with a very talented group of Ukrainian ICT companies visiting Canada,” Gudbranson said.

“Canada and Ukraine already have a close relationship. The final signing of the Canada-Ukraine Free Trade Agreement (CUFTA), which is imminent, will accelerate a lot of business opportunities between our respective countries.”

The event will provide a unique chance for Canadian companies interesting in off-shoring and finding partnering opportunities to have one-on-one B2B meetings and speak with many ICT executives from Ukraine who are here because they are interested and ready to work more closely with Canada, said Gail Balfour, Senior Research Analyst at Branham Group.

“Whenever I speak with Canadian ICT companies, both start-ups and ones that have been around for years, one thing that often comes up is their desire to find opportunities to do more business internationally. This event will provide a lot of potential for doing just that because we can introduce these Canadian company leaders to several like-minded executives from Ukraine, all in one room, and all with similar business goals and objectives.”

The Ukraine B2B meetings with Canadian companies will take place between May 29 and May 31, 2017 at the Ukrainian Chamber of Commerce building in Toronto. Shortly after, the Branham300 launch event takes place May 31, also in Toronto, where the Top 250 ICT companies in Canada will be announced. Key speakers at the invitation-only Branham300 event will include Nataliya Mykolska, Deputy Minister – Trade Representative of Ukraine.

Follow the hashtags #TeamUkraineICT and #2017Branham300 for social media updates. The Branham300 ranking of Canadian technology companies and multinationals operating in Canada will be posted at branham300.com on May 31, 2017.

Branham Group Inc. (www.branhamgroup.com), is a Canadian based, globally directed Industry Analyst and Strategic Advisory for the Information and Communications Technology (ICT) sector. Branham provides Planning – Marketing – Partnering service for established and new technology brands in the global market. With its Branham300 database, Branham has expansive data on the Canadian ICT industry. The Branham300 is a unique community in the Canadian ICT sector that includes privately held and publicly traded tech companies in Canada.

For more information, please contact:

Gail Balfour, Senior Research Analyst, Branham Group

613-745-2282, ext. 118

gbalfour@branhamgroup.com

About CUTIS (cutisproject.org/en/)

The Canada-Ukraine Trade and Investment Support (CUTIS) Project is a 5-year (2016-2021) Canadian development assistance initiative designed to lower poverty in Ukraine through increasing exports from Ukraine to Canada and investment from Canada to Ukraine.

About the Branham300

The Branham300, now in its 24th year, is a unique ranking of technology companies in Canada because it tracks both publicly held and privately owned companies. It is the only comprehensive list to do so. The Branham300 also delivers insight into Canada’s start-up community through the Top 25 Up and Comers and measures the contributions made by multinationals operating in Canada.

The Branham300 consists of three major listings, ranked by revenue (except where noted):

Top 250 Canadian ICT Companies

Top 25 ICT Multinational Companies operating in Canada

Top 25 Up and Coming ICT Companies (ranked on innovation and long-term promise, not revenue)

Sub-listings that are generated from the Top 250 listing include:

Top 25 Canadian Software Companies

Top 25 Canadian ICT Professional Services Companies

Top 25 Canadian ICT Hardware and Infrastructure Companies

Top 10 Canadian xService Providers (xSP) – (includes ASP, ISP, Wireless SP, MSP, etc.)

Top 10 Canadian ICT Security Companies

Top 10 Canadian Wireless Solutions Companies

Top 5 Pure-play Healthcare ICT Companies

Top 10 ICT Staffing Companies

Top 10 Software as a Service (SaaS) Companies

Top 10 Mobile Technology Companies

Top 5 Digital Media and Entertainment Companies

Top 25 Movers and Shakers

Top 15 Growth Companies

Source: branhamgroup.com

South Korea plans to invest in 4G and 5G development in Ukraine

The Republic of Korea announced plans to invest in the development of digital infrastructure for 4G and 5G network capability in Ukraine. This was reported by the Press Service of the Ministry of Economic Development after the meeting of First Vice Prime Minister of Ukraine Stepan Kubiv with Korean Ambassador Li Yang Gu and representatives of the Korean Investment Corporation K-Growth.

“The volumes of mutual trade and investment in Ukraine by the Republic of Korea are not yet significant. It’s time to change this situation and develop effective cooperation, especially in the development of information infrastructure for 4G and 5G in Ukraine,” Kubiv said.

According to him, cooperation is one of the overriding priorities of the work of the government and the Ministry of Economic Development, and Korea is an acknowledged world leader in mentioned field.

Towards the end of 2016, Ukraine began working on the development of 5G communication. Local mobile operator LifeCell and manufacturing companies Ericsson and Huawei, which produce equipment for communication networks, announced the joint development of the fifth generation communication standards.

Source: uawire.org