http://idcee.org/p/yevgen-sysoyev-aventures-capital/
An investment professional and entrepreneur, Yevgen has been the driving force behind the new venture capital fund at AVentures Capital.
In 2011, he co-founded DashBoard Systems, a software startup. From 2008 to 2010, he was a Vice President at ICON Private Equity, one of the leading private equity funds in Russia and Ukraine. At ICON, Yevgen was responsible for the fund’s deal flow and portfolio management. Previously, as an investment banker at Concorde Capital and co-founder of his own investment boutique, he originated and executed transactions in Ukraine and Russia with a total value in excess of US$250M.
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2. UKRAINE IT UNIVERSE OVERVIEW
OUTSOURCING
• $2B+ in revenue
• 50,000+
engineers
• 500+ firms
• 25-30% CAGR
late 90s
R&D GLOBAL CO
• $ billions created
• 5,000+
engineers
• 100+ centers
• 30-40% CAGR
early 2000s
INTERNET
• $2B local market
• Thousands
employees
• 100+ companies
• 40-50% CAGR
SOFTWARE TECH
• $1B worth total
• Thousands
engineers
• 1,000+ startups
• 50-100% CAGR
mid-late 2000s
2
3. SOFTWARE OUTSOURCING
Premier outsourcing destination
High quality engineering pool
#1
Top30
in CEE by
# developers
and $ volume
2008
2010
2011
2013
outsourcing
destination by
2nd
Gold
20%
most certified
IT professionals
in the world
4th
Silver
Top10
cheaper development
versus Russia and
Belarus
2013
2011
2012
2013
2012
2013
1st
2nd
Finalists
Outsourcing volume over the next 3 years
$4B
$2B
2013
2016
3
4. 100+ R&D CENTERS IN UKRAINE
AMERICA
EUROPE
CIS
ASIA
750 ppl
300
300
1100
600
150
150
150
250
100
200
100
4
6. CONSUMER INTERNET
$2B
1.8%
market
penetration
Electronics, apparel and ticketing are
the major categories
5x rise over the next 5 years
($USD B)
4.6%
11
10.0
5%
10
9
eCommerce, $B
8
Sport goods
Other
Online/Total sales, %
Shopping
clubs
4%
Laptops
7
Air
3%
Books
6
Cameras
5
4
1.8%
1.5%
3
2
Jewelry
1.5
2.0
Online
Hotels
shops
2%
Phones
1%
Events
Appliances
1
0
0%
2010 2011 2012 2013e 2014e 2015e 2016e 2017e 2018e
Electronics
Other
Other
Apparel Tickets
Auto parts
Personal care
Groceries
Other
6
7. UKRAINE IS NOT RUSSIA
Several $100M+ success
stories, dozens of growing
$20-50M+ companies
$10B Yandex and Mail.ru,
several $1B success stories
Success stories –
mostly global stories play
(“Israeli” model)
Success stories – both local
consumer play and
global $1B stories
Underdeveloped VCs
(first VC funds in 2011,
still only 2 Series A funds)
Developed VC ecosystem,
50+ funds
Large army of high quality
software engineers
• As in Israel, in Ukraine the local market is way too small, while huge army of engineers
is capable, and is witnessed, to create world class global technology leaders
• AVentures team argues that number of $100M-1B success stories in Ukraine will
increase with the development of VC ecosystem
7
8. VENTURE ECOSYSTEM IN LATE 2013
TICKET
Local
Global
INVESTORS’ GEOGRAPHY
Pre seed and seed
Round A
Round B
Few angels
with local
residence
or roots
FFF is still
predominant
funding method
hundreds deals/year
$15-50k ticket
Several Ukrainian
startups are residents
Number of global
VC funds screening
deals, though only
Intel closed 2 deals
50 deal/year
$15-100k ticket
10-15 deals/year
$1-3m ticket
Screening market,
$5-10M
8
13. DEPOSITPHOTOS: CEE SUCCESS STORY
2016-18: IPO/exit
TOP5 GLOBAL MICROSTOCK
$12m sales
16m photos
$6m revenue, Top5,
2x growth than market
Series A
$3m TMT
3m photos
Launch
2009
2010
2011
2012
2013
2014
13
14. KEY TAKEAWAY & CONTACT DETAILS
1. Multibillion IT industry in Ukraine exists today
2. Ukraine already plays important role in global
ecosystem
3. #1 in CEE and #4 in the world by number of
technical specialists
4. Ecommerce market to grow from $2B to $10B in 5-6
years
5. Software technology companies with R&D in
Ukraine can become global leading companies in
their niches
6. Venture capital ecosystem is extremely
underdeveloped, yet this is changing fast
7. Lot of interesting startups
8. At least 2-3 IT company to go IPO/exit for “hundreds
of million US dollars” during next 4-5 years
Y
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G
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N
S
Y
S
O
Y
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V
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a
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a
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