Ukrainian players respond: How the association agreement will impact the country’s IT, e-commerce and startup industries
Following the signature of the EU-Ukraine association agreement in late June, six figures of the Ukrainian high tech industry – EastLabs CEO Eveline Butchaskiy, Bionic Hill CEO Victor Galasyuk, Alexandr Ladyvir of Nova Poshta, UADM President Valentin Kalashnik, N-IX founder Andrew Pavliv, AVentures Capital’s Yevgen Sysoyev and TA Venture’s Viktoriya Tigipko – have shared with Ukraine Digital News their views on the potential consequences of the agreement.
On July 3rd, the Ukrainian parliament voted to recommend that the national government cease using Russian-created software in state agencies. The move is billed as being in the interests of national security, as software created in Russia may carry cyber threats, Ukrainian lawmakers believe.
The bill, which was proposed by MPs Oleksandr Mochkov from Udar and Valeriy Omelchenko from Party of Regions, requires that the state inform the parliament about progress regarding implementation by December 1, 2014.
Energy-management startup EcoisMe announces investment from Deutsche Telekom and Polish incubator Hubraum
EcoisMe, which has developed a system for managing energy at home, has obtained 30,000 euro from Polish incubator Hubraum at an undisclosed valuation. Consequently, the Ukrainian startup will move operations to Krakow, Poland.
EcoisMe has also reached an investment agreement with Deutsche Telekom, which manages Hubraum. According to the second agreement, the German telco giant will obtain 15% of shares in the Ukrainian startup in exchange for 50,000 euro.
Since Ukraine popped up on the front pages of newspapers around the globe at the beginning of this year, there have been concerns – from both overseas customers and employees here in Ukraine – about how the Maidan revolution and its aftermath will impact the IT industry.
Let us try to quantify what’s happening right now in the industry with concrete numbers.
Universum, a global leader in employer branding, has released its first student survey in Ukraine. The survey reveals how attractive an employer is for students and indicates its position in relation to recruitment competitors.
Not only have Google and Microsoft been judged the most attractive IT employers, they also take the lead in the Business/Commerce and Engineering/Natural science rankings.
Earlier this year, Apple identified the app as the “App of the Week” and named it an “Editor’s Choice” in 70 countries, which propelled it to the top of the app-charts in many countries.
An astounding number of American technology companies employ engineers in Ukraine, but you would never know it. Most don’t have formal offices in Kiev, preferring to hire people through intermediaries.
Many companies would prefer to not publicly acknowledge these employees exist given that “outsourcing” is a dirty word in in U.S. politics. But given the continuing crisis in Ukraine, now is the time to stand up and speak out. Many companies might think they are powerless to do anything but wait out the crisis – but they’re wrong.
During the first five months of 2014, the volume of services provided by entrepreneurs and organizations in the information and telecommunications sectors in Ukraine were valued at 28.8 billion hryvnias (approximately $2.42 billion), reports the State Statistics Service of Ukraine.
More specifically, telecom companies accounted for services valued at 19.78 billion hryvnias (approximately $1.66 billion), while “computer programming and other information services” accounted for 5.12 billion hryvnias (approximately $430.7 million).
Last week Ukrainian business angels announced the creation of the UAngel local and international association. UAngel will provide access to information on deals, encourage co-investment and organize events and training programs for association members.
“This is a super-important element of the startup ecosystem, which Ukraine was indeed missing. Just compare these numbers: in 2012, VCs invested 1.9 billion euros in early-stage startups, and business-angels invested 5.1 billion euros!” Viktoriya Tigipko, a prominent figure on the local venture scene, posted on Facebook.