Stankevicius MGM Review: Armenia as the tech hub
Released 09:22 24-Jul-2020
Ayuben Ventures has launched a $50 million investment fund dedicated to the Armenian tech sector and Armenian entrepreneurs from the country's large diaspora. The move is driven by the recognition that Armenia is set to become the world's next global tech hub.
The fund is looking at projecting up to 20 investment deals with approximately $1 million to $3 million for each project. These investments are designed to drive development and expand sales geography as well as increase investment attractiveness for following funding rounds.
The potential of Armenian tech has been recognised by some of the world's largest and most powerful tech companies such as Intel, Microsoft, Google, IBM, Synopsys and Cisco, who have all been quick to establish a physical presence.
Ayuben Venture's co-founder and Alexander Smbatyan said the funds core mission is to scale Armenian IT businesses worldwide, providing them with capital, expertise, exclusive market knowledge and access to a worldwide network of interested partners and clients.
A wealth of tech start-ups has already attracted significant investment attention especially in the fields of artificial engineering, bio-technology, virtual reality and visual recognition. The size of these markets is expressed in billions of dollars with double-digit annual growth rates.
Over the last few year's well-known Armenian companies such as ServiceTitan, PicsArt, Teamable and others have obtained finance in excess of $300 million. Today Armenian diaspora company Service Titan is valued at about $1 billion and the success of native Armenian firms such as PicsArt and Shadowmatic is also attracting further investment attention.
Ayuben Venture's planned investment is based on both initial funding and follow-on investment rounds funding. The investments will be made on a world-wide basis and not exclusively in Armenia as the Armenian tech sector interlocks and overlaps with the world tech sector. There are many Armenian entrepreneurs with strong links into Silicon Valley and the world's tech giants.
In terms of the country itself Armenia's digital strengths are low cost and high productivity talent which has made the country an attractive outsourcing destination for multinational IT giants. But the country and its diaspora also has deep tech talent which has grown out of its education system and a long-standing heritage of designing and producing microchips, industrial control systems and other core tech components.
The total worldwide Armenian population is estimated at 7 to 10 million people, but only 3 million of live in Armenia. A growing number are returning home to help shape the future of their country and the government is also playing an enabling role in helping develop the tech sector into what it calls 'Silicon Mountains'. Ayuben Ventures is aiming to tap into this and is expecting significant investment returns within a few years.
About Ayuben Ventures
Ayuben Ventures was founded by Alexander Smbatyan, a technological entrepreneur and venture investor with interests in Russia and Armenia and Alexander Yesayan, founder and CEO of UCom, Armenia's dominant mobile and fixed broadband service provider. Smbatyan has a lengthy track record in successful tech investments and Yesayan is an expert in the tech field. He previously founded and ran Genome, a group of technology companies, which create products and services in the education, healthcare and human capital. Today he sits on the board of the World Information Technology and Services Alliance (WITSA) and is the President of The Union of Advanced Technology Enterprises (UATE) of Armenia.
Stankevicius MGM is not an investment advisor. Before investing consult with a professional investment advisor. This review is done based on business experience.