How Armenia is attempting to construct a Silicon Valley within the Caucasus


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Rayhan Demytrie

BBC South Caucasus correspondent

BBC Nine-year-old Slavik shows his inventionBBC

Younger Armenians, reminiscent of nine-year-old Slavik, are attending expertise lessons

In Armenia tech training begins early.

In a typical three-storey state college within the suburbs of Yerevan, the Armenian capital, nine-year outdated Slavik is demonstrating his invention – a field with three LED lights.

“He has realized how one can management it, and the programming language. You’ll be able to see the code is written by him,” says Maria, the 21-year-old tech coach main the category.

Subsequent to them, 14-year-old Eric and Narek are exhibiting their good greenhouse mannequin that screens temperature and controls followers routinely by means of a cell app.

Different youngsters are enthusiastically showcasing their innovations: video games, robots, apps and good residence initiatives.

Eleven-year-old Arakel is holding his cardboard mannequin of a home with a retractable clothesline.

“I’ve made my mom’s work simple, one a part of the gadget is ready on the roof, and one other is a motor,” he says. “When it rains the road goes below the roof to maintain the garments dry.”

These younger inventors have been attending engineering lab lessons the place they study programming, robotics, coding, 3D modelling and extra.

The programme began in 2014, and known as Armath, which interprets into English as “root”. At the moment there are 650 Armath labs in colleges throughout Armenia.

The initiative was established by a enterprise organisation referred to as the Union of Superior Know-how Enterprises (UATE), which represents greater than 200 high-tech Armenian firms.

“The imaginative and prescient is that we need to see Armenia changing into a tech centre powerhouse that delivers utmost values to Armenia and to the world,” says Sarkis Karapetyan, the chief government of UATE.

In his spacious, open-plan workplace in Yerevan he says that there at the moment are round 4,000 tech firms in Armenia.

Getty Images The skyline of Armenia's capital YerevanGetty Photos

Armenia and its capital Yerevan, pictured, have been a centre of maths and computing throughout the Soviet period

Armath is a part of the UATE’s training and workforce growth programme. Mr Karapetyan says the programme is probably the most profitable public-private partnership within the nation.

“We elevate capital expenditure from the personal sector, we go to the colleges and set up Armath labs, we donate the gear,” he says. “And the federal government, the training ministry offers us a price range of $2m (£1.5m) yearly to pay the salaries of the coaches.”

There at the moment are greater than 600 coaches, and 17,000 energetic college students.

“The purpose is to have 5,000 of probably the most proficient children determine to turn into engineers yearly,” says Mr Karapetyan.

Armenia is a landlocked nation of two.7 million folks, the smallest within the South Caucasus area, and its borders with neighbouring Azerbaijan and Turkey have been shut for many years resulting from unresolved territorial disputes.

In contrast to its neighbours, Armenia doesn’t have pure sources or entry to the ocean. However all through the Soviet period it had been a centre of arithmetic and pc science.

In 1956 the Yerevan Scientific Analysis Institute of Mathematical Machines was established in Armenia and by 1960 it had developed two first era computer systems.

At the moment, the nation is tapping into its legacy with the ambition to rework itself into the tech powerhouse of the Caucasus.

And there was some success already. Picsart, a AI-powered picture and video enhancing web site and app, was launched in Armenia in 2011. At the moment the corporate of the identical title, which has twin headquarters in Yerevan and Miami, is valued at $1.5bn.

Krisp, which makes audio-processing software program, and Service Titan, which supplies enterprise software program, are different Armenian success tales.

In the meantime, an annual report says that Armenia is the most effective nation within the Caucuses area through which to launch an organization, placing it in 57th place globally. This compares with Georgia in seventieth place, and Azerbaijan in eightieth.

Getty Images The logo of Armenian tech firm PicsartGetty Photos

Picsart, based in Armenia in 2011, is in the present day valued at $1.5bn

A essential consider boosting Armenia’s tech growth is the nation’s international diaspora – some 75% of the world’s estimated Armenians, and folks of Armenian descent, reside elsewhere.

This worldwide neighborhood supplies necessary connections, particularly within the US tech trade. Within the US there are as many as 1.6 million folks of Armenian ancestry, centred on California.

Samvel Khachikyan, is director of packages at SmartGate, a enterprise capital agency based mostly in each California and Armenia that focuses on tech investments.

He says that should you have a look at the highest 500 firms within the US, “for certain you will discover no less than one or two Armenians” within the boardroom or one administration degree beneath.

Mr Khachikyan explains how his firm helps Armenian entrepreneurs arrange operations within the US.

“Think about an Armenian start-up, two younger folks deciding to go to the US to attempt to function there, they haven’t any connections, no information in regards to the tradition the way it works.

“It is gonna be laborious, very laborious. We’re serving to them, it is just like the launch of the rocket, the primary couple of seconds is the toughest.”

SmartGate takes Armenian founders to Silicon Valley and Los Angeles for intensive networking with high US firms and traders.

However many Armenian start-ups first take a look at their merchandise of their residence market.

Irina Ghazaryan, is the founding father of an app referred to as Dr Yan that’s altering how Armenians entry healthcare by enabling them to extra simply e-book appointments with docs.

Ms Ghazaryan was beforehand working in product and internet design when, helped by the very fact she comes from a household of docs, she recognized a niche available in the market. “Sufferers could not discover the suitable docs, and docs have been affected by limitless calls.”

The app operates on a subscription mannequin, with docs paying to be listed on the platform, and there are plans to broaden.

“We’re rising no less than 25% income month by month,” provides Ms Ghazaryan. “We’re nearly break-even in Armenia and that offers us energy to begin increasing to different markets, like Uzbekistan.”

Irina Ghazaryan, the founder of medical app Dr Yan, smiles at the camera with her arms crossed

Irina Ghazaryan plans to broaden her medical app Dr Yan overseas

Armenia’s tech ecosystem acquired an surprising enhance in 2022 following Russia’s invasion of Ukraine. Hundreds of Russian IT specialists left their nation, and plenty of selected to settle in Armenia.

In the meantime, US chipmaking big Nvidia moved its Russian workplace to Armenia.

Vasily is a Russian IT advisor who relocated to Armenia in 2023. “Armenia was probably the most pleasant to folks from Russia with a view to assist them transfer, adapt and so forth,” he says.

He estimates that that the Russian IT neighborhood in Armenia now totals 5,000 to eight,000 folks. This inflow has mentioned to have crammed essential ability gaps in Armenia’s tech sector, in areas reminiscent of information processing, cybersecurity, and monetary applied sciences.

But Vasily says that Armenia will be costly and the nation wants to scale back the tax burden on IT corporations if it desires them to remain within the nation.

Nevertheless, total optimism stays excessive about Armenia’s tech future. Samvel Khachikyan expects the sector to growth. He factors to Service Titan, which floated on the New York Inventory Alternate final December, and is now price greater than $10bn.

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