How Armenia Is Trying To Build A Silicon Valley In The Caucasus

In Armenia tech acquisition starts early.

In a emblematic three-storey authorities schoolhouse successful nan suburbs of Yerevan, nan Armenian capital, nine-year aged Slavik is demonstrating his invention - a container pinch 3 LED lights.

"He has learned really to power it, and nan programming language. You tin spot nan codification is written by him," says Maria, nan 21-year-old tech coach starring nan class.

Next to them, 14-year-old Eric and Narek are showing their smart greenhouse exemplary that monitors somesthesia and controls fans automatically done a mobile app.

Other children are enthusiastically showcasing their inventions: games, robots, apps and smart location projects.

Eleven-year-old Arakel is holding his cardboard exemplary of a location pinch a retractable clothesline.

"I person made my mother's activity easy, 1 portion of nan instrumentality is group connected nan roof, and different is simply a motor," he says. "When it rains nan statement goes nether nan tile to support nan apparel dry."

These young inventors person been attending engineering laboratory classes wherever they study programming, robotics, coding, 3D modelling and more.

The programme started successful 2014, and is called Armath, which translates into English arsenic "root". Today location are 650 Armath labs successful schools crossed Armenia.

The inaugural was established by a business organisation called nan Union of Advanced Technology Enterprises (UATE), which represents much than 200 high-tech Armenian companies.

"The imagination is that we want to spot Armenia becoming a tech centre powerhouse that delivers utmost values to Armenia and to nan world," says Sarkis Karapetyan, nan main executive of UATE.

In his spacious, open-plan agency successful Yerevan he says that location are now astir 4,000 tech companies successful Armenia.

Armath is portion of nan UATE's acquisition and workforce improvement programme. Mr Karapetyan says nan programme is nan astir successful public-private business successful nan country.

"We raise superior expenditure from nan backstage sector, we spell to nan schools and found Armath labs, we donate nan equipment," he says. "And nan government, nan acquisition ministry gives america a fund of $2m (£1.5m) annually to salary nan salaries of nan coaches."

There are now much than 600 coaches, and 17,000 progressive students.

"The extremity is to person 5,000 of nan astir talented kids determine to go engineers each year," says Mr Karapetyan.

Armenia is simply a landlocked state of 2.7 cardinal people, nan smallest successful nan South Caucasus region, and its borders pinch neighbouring Azerbaijan and Turkey person been unopen for decades owed to unresolved territorial disputes.

Unlike its neighbours, Armenia does not person earthy resources aliases entree to nan sea. But passim nan Soviet era it had been a centre of mathematics and machine science.

In 1956 nan Yerevan Scientific Research Institute of Mathematical Machines was established successful Armenia and by 1960 it had developed 2 first procreation computers.

Today, nan state is tapping into its bequest pinch nan ambition to toggle shape itself into nan tech powerhouse of nan Caucasus.

And location has been immoderate occurrence already. Picsart, a AI-powered photograph and video editing website and app, was launched successful Armenia successful 2011. Today nan institution of nan aforesaid name, which has dual office successful Yerevan and Miami, is weighted astatine $1.5bn.

Krisp, which makes audio-processing software, and Service Titan, which provides business software, are different Armenian occurrence stories.

Meanwhile, an yearly study says that Armenia is nan champion state successful nan Caucuses region successful which to motorboat a company, putting it successful 57th spot globally. This compares pinch Georgia successful 70th position, and Azerbaijan successful 80th.

A captious facet successful boosting Armenia's tech improvement is nan nation's world diaspora – immoderate 75% of nan world's estimated Armenians, and group of Armenian descent, unrecorded elsewhere.

This worldwide organization provides important connections, particularly successful nan US tech industry. In nan US location are arsenic galore arsenic 1.6 cardinal group of Armenian ancestry, centred connected California.

Samvel Khachikyan, is head of programs astatine SmartGate, a task superior patient based successful some California and Armenia that focuses connected tech investments.

He says that if you look astatine nan apical 500 companies successful nan US, "for judge you'll find astatine slightest 1 aliases 2 Armenians" successful nan boardroom aliases 1 guidance level below.

Mr Khachikyan explains really his institution helps Armenian entrepreneurs group up operations successful nan US.

"Imagine an Armenian start-up, 2 young group deciding to spell to nan US to effort to run there, they person nary connections, nary knowledge astir nan civilization really it works.

"It's gonna beryllium hard, very hard. We are helping them, it's for illustration nan motorboat of nan rocket, nan first mates of seconds is nan hardest."

SmartGate takes Armenian founders to Silicon Valley and Los Angeles for intensive networking pinch apical US companies and investors.

But galore Armenian start-ups first trial their products successful their location market.

Irina Ghazaryan, is nan laminitis of an app called Dr Yan that is changing really Armenians entree healthcare by enabling them to much easy book appointments pinch doctors.

Ms Ghazaryan was antecedently moving successful merchandise and web creation when, helped by nan truth she comes from a family of doctors, she identified a spread successful nan market. "Patients couldn't find nan correct doctors, and doctors were suffering from endless calls."

The app operates connected a subscription model, pinch doctors paying to beryllium listed connected nan platform, and location are plans to expand.

"We are increasing astatine slightest 25% gross period by month," adds Ms Ghazaryan. "We are almost break-even successful Armenia and that gives america spot to commencement expanding to different markets, for illustration Uzbekistan."

Armenia's tech ecosystem received an unexpected boost successful 2022 pursuing Russia's penetration of Ukraine. Thousands of Russian IT specialists near their country, and galore chose to settee successful Armenia.

Meanwhile, US chipmaking elephantine Nvidia moved its Russian agency to Armenia.

Vasily is simply a Russian IT advisor who relocated to Armenia successful 2023. "Armenia was nan astir friends to group from Russia successful bid to thief them move, accommodate and truthful on," he says.

He estimates that that nan Russian IT organization successful Armenia now totals 5,000 to 8,000 people. This influx has said to person filled important accomplishment gaps successful Armenia's tech sector, successful areas specified arsenic information processing, cybersecurity, and financial technologies.

Yet Vasily says that Armenia tin beryllium costly and nan state needs to trim nan taxation load connected IT firms if it wants them to enactment successful nan country.

However, wide optimism remains precocious astir Armenia's tech future. Samvel Khachikyan expects nan assemblage to boom. He points to Service Titan, which floated connected nan New York Stock Exchange past December, and is now worthy much than $10bn.