The Caucasian Tech Eagle

By: Ahmed Ibrahim

Table of contents:
1- Introduction
2- The tech history in Soviet Armenia
3- Digital transformation in Armenia 2018-2030 plan
4- Economic reforms impact on High-Tech industry growth in Armenia
5- Business environment in Armenia: challenges and hopes
6- Welcome to Armenia: The promising tech hub
7- Armenia's top 10 startups
8- 5 Armenian start-ups link Armenians in the diaspora
9- Green initiatives in Armenia: Forests VS Climate change
10- Armenian tech accomplishments 2021
 Introduction

Armenia is considered a Silicon Valley in the Caucasus region, as it is a source

of advanced competencies in the field of technology, in addition to being a
crucial link between the continents of Asia and Europe due to its unique
location, which makes it a gateway for communication and transfer of
expertise.
 The tech history in Soviet Armenia

Armenia is one of the leading centres for software development in the world, a
regional hub for chip design, additionally networking systems, and
communications. It has a long history in computing, and a much larger role in
the history of Soviet computing than many would imagine for such a small
country. For instance, somewhere between 30% and 40% of Soviet military
computers were built in it.
The story began with Andronik Iosifyan. Born in 1905 in the Kalbajar district of
Artsakh, he became the director of the All-Union Scientific Research Institute
of Electromechanics (AUSRIE) in Moscow. Iosifyan specialized in designing
electronics and used his skills to design electrical systems for missiles, nuclear
submarines, satellites, and spacecraft, such as the first Soviet Meteor weather
satellites. Besides, Victor Hambartsumyan, known as the founder of theoretical
physics in the Soviet Union, was looking for designs for a computer that might
be assembled at the Yerevan Scientific Research Institute of Mathematical
Machines (YerSRIMM) that had been established in 1956, with the
mathematician Mergelyan as its founding director.
He travelled to Moscow to meet Iosifyan, in the hope of securing such a
design. Iosifyan knew Isaak Bruk, who had designed a minicomputer called the
M-3 for scientific calculations and arranged to build three at AUSRIE between
1957-1958. One of these stayed at AUSRIE, - one went to Sergey Korolev, the
lead designer of the first Soviet spaceships, and satellites- and the other to
Sergey Mergelyan at YerSRIMM.
Receiving the M-3 computer in Yerevan enabled Mergelyan and his team to
accelerate their work in computing and they designed a new computer called
Aragats between 1958-60, based on the M-3. A lot of the Armenian
technological research and production was conducted at the Yerevan
Computer Research and Development Institute –or the Mergelyan Institute-
during the Soviet era. The Razdan general-purpose computer series was
developed between 1958-1965.

Beginning of the digital era

Electronics demonstrated to be new strategic technology, due to the economic
reforms that were launched after Stalin’s death in 1953, so, Soviet Armenia
took a notable role in manufacturing a new generation of military-focused
hardware by establishing new factories in Gyumri , Etchmiadzin, Sisian, Ijevan,
Vedi and other smaller towns.
In 1960-1980, Armelectro, Electron, and HrazdanMash the Soviet Armenian
factories began to create early computers, machine-controlled management
systems, radio electronics, space communication devices, rocket launchers,
and various parts used in military submarines and ships.
According to the decentralized and theoretically-egalitarian ideology of the
Soviet Union, the production process was not fully concentrated in Armenia.
Armenian factories focused on creating parts that were then shipped to other
areas for final assembly. This made Armenia a centre of science, especially
math and physics. The field of radio physics was centered on the Yerevan
Computer Research and Development Institute.
A network of factories, companies, research centres, and institutes made
Armenia an electronics hub. Among the USSR, Armenia was the second in the
production of electric machines, the fourth in overall military production, and
the fifth in instrumentation; it punched well above its weight considering its
size.

Producing early computers

In the early 1950s, the first steps toward producing early computers were
started. At first, they were aimed to aid in scientific and technical calculations,
but later expanded into more general information processing. Early research
was centered in universities in Moscow, where the first specialists began to be
trained.
In 1956, the Mergelyan Institute was established in Soviet Armenia, marking
the start of the new computer age and playing a role similar to that of Stanford
University in Silicon Valley nowadays. Computer brands such as Nairi, Aragats,
Araks, Razdan, Prizma and others were designed and created in Soviet
Armenia.

The Hrazdan/Razdan computer series

It was the first semiconductor computer in the Soviet Union. Between 1958
and 1965, the Mergelyan Institute created general-purpose digital computers.
The Razdan-1 was released in 1958, occupying an entire room and the Razdan-
2 in 1961 could perform 5000 operations per second, and the Razdan-3 in 1966
could perform in the order of 30,000 operations per second. The Razdan
computers were large - designed to occupy a 50 square meter room - and were
mostly used for military purposes. A Razdan-3 can still be seen in the Computer
Science Museum in Szeged, Hungary.

The Razdan family of general purpose digital computers

Its applications expanded into economics and statistics and were used in
experimental physics. Later, the Nairi minicomputer was developed to be used
to solve scientific, engineering, and economic problems. This was a smaller
machine, designed to be operated by a single person, and some were in use in
Moscow railway stations. Several iterations of Nairi were developed, with
those in the 1980s being designed to be compatible with DEC PDP-11
computers.
From 1962 to 1964, the institute designed and released a prototype of another
computer named Araks.

The Aragats computer

Aragats was designed and assembled at Yerevan Institute between 1958-1960.
It incorporated new custom-designed computer memory technology based on
a photo reading device (capable of converting an image into a processing unit),
magnetic tapes, external drums, and ferrite cores. Only four units were ever
made, they were used in the computer centres of the Armenian and Georgian
academies of science, one in a Moscow research institute, and the other in the
computer centre of the Novosibirsk branch of the USSR Academy of Sciences.

The Aragats limited edition computer

Not all designs were mass-produced. In 1960, the development and testing of
the “Yerevan” universal electronic computer were completed. It was intended
for ship propeller calculations but never implemented.

The collapse of the Soviet Union

By the end of the Soviet era, the following difficulties were extremely
disruptive to the sector like Supply chain breakdown, competition in a global
market, and emigration of human talent didn’t stop the IT sector from playing
an important and growing part in the Armenian economy. The government
encourages people of the Armenian diaspora working in big multinational
companies, such as Microsoft and Synopsys, to move their R&D branches to
the country.
The institute today is home to a new generation of startups, and IT workers
who are the highest-paid employees in the country. Those computers today
are regarded as the Soviet legacy as most Soviet computer manufacturers
ceased operations after the breakup of the Soviet Union, and a few companies
that survived into the 1990s, used foreign components and never achieved
large production volumes. However, Armenians are still making outsized
contributions to the tech sector of the 21st century.
 Digital transformation in Armenia 2018-2030 plan

Armenia is one of the promising countries in the Caucasus. It begins digitally to

transform services that are offered to its citizens in different fields to enhance
the day-to-day lives of the Armenian society, especially after the Covid-19
pandemic.
During his speech at the Digital Agenda in the Era of Globalization forum 2018
in Almaty, Kazakhstan, the former PM Karen Karapetyan said “we believe that
the digital transformation is not only a step to the technological progress but
also is the only opportunity to become a country with effective governance
and economy in a short time and here there are no alternatives for us”.
The rapid digital progress is being implemented by 6 main directions of digital
transformation:
-Digital governance
-Digital skills
-Infrastructure
-Cyber-security
-Private sector
-Institutional basis

E-governance and Digital Technologies

As a step on the path of the former PM, the deputy minister of high technology
industry Stepan Tsaturyan said -during the discussion of Armenia’s 2020-2025
digitization strategy draft, in attendance of current PM Nikol Pashinyan- that
Armenia is capturing leading positions in terms of the development of e-
governance and digital technologies, and the successful initiatives carried out
so far are a good base for the future digital transformation.
According to the digital strategy, which is expected to be implemented in 2
phases – in 2020-2021 and 2022-2025, it is planned to carry out a digital
transformation of the state, economy, and society with the development of
innovative technologies, cyber-security and data policy in the public
administration system, the introduction of united standards, the
implementation of education programs, as well as with the promotion of
digital tools in the private sector.
“The Armenian government views digitization, innovation and new
technologies as important tools for ensuring the efficiency of public
administration, and favorable conditions for the business climate. In 2020 the
turnover of IT companies in Armenia comprised over 400 million USD, which
increased by 20% compared to the previous year. In 2020 the number of
people working in this sector has increased by 22%. Currently, 1200 companies
operate in this sphere”, Pashinyan said.
During Almaty Digital Forum 2021 in Kazakhstan, Pashinyan presented the
results and the digital data in his remarks as digital technologies are one of the
most developing directions in Armenia.

Government VS Pandemic
According to him, the pandemic put a hard task before the government. The
solution to such problems leads to the broad use of digital technologies, and
the formation of a new culture. Pashinyan said digital technologies and e-
government tools have been used in Armenia. He added that Armenia is going
to introduce and develop a policy of electronic services, e-government systems
and digital processes.
“I would like to praise the fact that the member states of the Union managed
to use digital technologies for overcoming some of the problems caused by the
pandemic. The talk is about the “I Am Travelling without COVID-19” digital
platform which resumed the free movement of citizens between Armenia,
Russia and Belarus. From the beginning, Armenia has supported the Eurasian
Development Bank’s “Digital Initiatives Fund” project, and we want to thank
our partners of the Fund and the Russian and Belarusian governments for the
active joint work within the frames of this program”, the PM said.

The Central Bank and Financial Transformation

During the Armenian Summit of Minds, the president of the Central Bank
Martin Galstyan stated that the Central Bank has become a champion in the
transformation process of financial services and the digital transformation of
financial services has become a priority for the Bank. Also, assured that they
can create respective grounds for the development of the digital economy,
adding that the next important step concerns the digitization of payment and
calculating services, based on innovative solutions aimed at improving the
quality of services as it will create a new ecosystem for the new digital financial
services.
Mr. Galstyan believes that Armenia could become a home for many
innovations, as the future is based on science and technologies, and by dint of
talented human resources, open culture and a strong Diaspora.
 Economic reforms impact on High-Tech industry growth in
Armenia

The past decade has slowed Armenia’s all-important economic diversification

due to the global financial crisis, as the country was hit badly by the 2015
commodities crisis, but an important, political flaw was caused by the
Armenian Revolution of 2018, which led to a reformist government that
introduced more favorable laws for foreign investors. Finally, there was then
the withering impact of Covid-19.
And to get past it digitalization, innovation, and the latest technologies are
considered by the Armenian government as essential tools for creating an
effective and representative system of public administration, a favorable
business environment, and ensuring progressive economic growth.

Armenia’s economy has been growing for more than a decade

Armenia is already a part of the global software industry. An appreciable share
of Armenia’s total trade volume is information and communication services
exports. Half of the IT companies in the country have either a specialization in
customized software or services or web or mobile development. Roughly one-
third of the sector’s revenue is generated by customized software, i.e.,
outsourcing.
Yerevan is rapidly becoming the region’s standout tech hub and driver of
needed economic diversification, for foreign direct investors and the tech
sector which grew by 20% in 2020, making it the fastest-growing industry. The
capital’s tech scene has generated media attention due to its proximity to the
EU, as Armenia boasts of the EU-Armenia Comprehensive and Enhanced
Partnership Agreement.

The higher education and incubators in Armenia

As a part of its efforts, Armenia pays attention to the institutions of higher
education. Proof of this is a strong aggregation of highly qualified IT specialists,
which come at very competitive costs. Thus, many powerful technology
companies including Intel, Microsoft, Google, IBM, and Synopsys have a
physical presence in the country. Also, Mentor Graphics (a Siemens business),
VMWare, D-Link and Oracle are present, while Cisco carries out research and
development already functions in Armenia.
As a result of this, the Minister of High Tech Industry Hakob Arshakyan called
on students seeking to obtain higher education to seek engineering
professions, saying that this sector is growing rapidly in Armenia.
Besides its universities, Armenia boasts the Enterprise Incubator Foundation –
a government entity to support the start-up scene – as well as the Microsoft
Innovation Center, the IBM Innovative Solutions and Technologies Center and
others like the Enterprise Incubator Foundation (EIF) which was established by
the Government Decision N 1165 of November 27, 2010, within the framework
of the loan agreement with the World Bank, to create preconditions for
bringing Armenia’s IT sector up to international standards. Viasphere
Technopark has been operating since 2001, hosting more than 30 companies in
the sector within its grounds.
The acceleration of Armenia’s start-up ecosystem is highlighted by an
increasing number of business ideas competitions, 'hackathons' and grant
programs. Two Armenian start-ups – AIPTech and Oqni - won the grants of
Revive program which is a part of a larger UNDP Veterans Support Program
under the UNDP Tech2Life Auxiliary Technologies for Self-Sufficiency. AIPTech
will receive a $ 7,000 grant from Revive to start the patent application process.
Whereas, Oqni will receive a $ 2,000 grant from the Revive program to provide
professional assistance in obtaining the necessary certification.

Economy’s liberalization impact on the tech sector

Armenia does not impose restrictions on foreign control and rights to private
ownership and establishment, and business registration procedures are fast.
The country has made great progress towards the liberalization of its economy
over the past decade – ranking first among the Commonwealth of Independent
States in terms of FDI appeal, according to the World Bank.
Armenia’s free economic zones (FEZs) are focusing on the IT and high-tech
sectors, there are four zones in the country, most of which are in or near the
capital. The Alliance FEZ houses the Yerevan Computer R&D Institute that
specializes in the production and export of innovative technologies in the areas
of electronics, precision engineering and pharmaceuticals.
Meantime, the ECOS FEZ specializes in high tech, with an emphasis on IT start-
ups using Blockchain technology and AI. Another free zone in Gyumri will be
built in 2022, focusing on manufacturing, high tech and blockchain. All FEZs in
Armenia provide companies in the tech space with preferential treatment on
corporate profit tax, VAT, property tax and customs duties.
 Business environment in Armenia: challenges and hopes

Business in Armenia with the aim of creating start-ups remains the most
attractive as the South Caucasian republic has every chance of becoming a
world-renown technological centered. Many reasons reinforce this like:
1- Government policies aimed at instrumental support for development ideas
and scientific breakthroughs.
2- Strong pool of highly skilled workforce, as well as a stable basis for the
revival of the technology sector which was historically strong since the Soviet
era.
3- Tax incentives are conceived for doing business in Armenia in the form of
start-ups – 0% income tax for the first three years of activity, provided that the
registered company has less than 30 employees and was not formed as a result
of the reorganization of a legal entity or an individual.
4- Representative offices of many world technology corporations – Mentor
Graphics, Microsoft, National Instruments, IBM, Synopsys, etc.
5- Armenia’s high ranking in terms of Ease of Doing Business (7th in the
ranking, according to the World Bank Doing Business assessment) is
particularly due to robust steps towards eliminating corruption and
bureaucracy. Today it is possible to register a company in Armenia remotely in
1-3 working days.
Founders including small local companies need to focus on new products that
could be of interest to larger-scale organizations, to ensure consistent and
lasting impact in the market. Additionally, it is important to have a well-versed
business plan to support its development and keep the quality considerations
of the new product.

How can Government support and develop start-ups?

Once starting a business in Armenia by registration of a new start-up, foreign
investors and businessmen are guaranteed to receive full investment
protection at the state level. Additionally, the opportunities for international
cooperation in science and technology parks are expanding: venture funds and
business angels are expanding in Armenia.
The Armenian technology sector is considered an ideal platform for research
and innovation. As a result, Indonesia has already praised the small Caucasian
republic in the field of technology, in 2019, an agreement was signed between
Yerevan and Jakarta on the interaction of science and technology parks of the
two countries aiming to establish new and expand existing business
incubators.
Within the framework of the UMEX / SimTEX 2020 exhibition, the Minister of
High-tech Industry of Armenia, Mr. Hakob Arshakyan visited the UAE and
discussed issues of cooperation in the field of navigation systems based on
artificial intelligence. Also, Armenia presented the “Soldier of the Future”
project to the UAE authorities, aiming to combine the efforts of the two
countries for introducing high technologies in the sphere of defense and
military industry. Besides, the government’s agenda includes a package of
regulations for the crypto and blockchain industry.
Mohammed bin Ahmed Al Bowardi, Minister of State for Defence Affairs, and
Hakob Arshakyan, Minister of High-Tech Industry of Armenia.

Research laboratories- the cornerstone of the equation

According to Armenian PM Nikol Pashinyan, it is necessary to take urgent anti-
crisis measures with the implementation of development and reform programs
in all sectors, including social security. Reforming the economy will clearly
require innovation to ensure the competitiveness of the state at the global
level, which provides increased opportunities for future and existing start-ups.
In this regard, Armenia benefits from the presence of research laboratories. It
is notable that the country’s potential is recognized by a number of European
countries and the United States, which willingly extend support to this South
Caucasian country. For example, the SMEDA project, funded by Germany
(Federal Ministry for Economic Cooperation and Development) and the EU,
supported the establishment of a start-up academy, which became the cradle
and a solid foundation for many businesspeople.

Funding of Armenian start-ups

Latterly, a range of projects was launched in the country, they aim to detect
and support, especially financially. Armenian government supports start-
uppers. A cooperative program between the Ministry of Economy and the U.S.
Civilian Research & Development Foundation, named STEP (Science &
Technology Entrepreneurship Program), was created in 2006 to help
entrepreneurs and scientists create innovative products and promote them.
Being sponsored by STEP, enterprises can not only receive consulting
assistance but also financial help worth 6000$.
There are few venture funds in Armenia, but Armenian start-ups are created
for the global market which eases the attraction of investments.

Venture funds
1- Granatus Ventures
It is the first venture capital firm in Armenia. It was established in 2013. Its
offices are located in Yerevan, London and Singapore. Among the most famous
projects of the fund are Menu Group, ggTaxi and News Deeply which
specializes in creating and maintaining websites that are dedicated to one
specific problem.

2- HIVE Ventures
This fund was established in 2014, in California, the US. The founders of which
are Armenians, It doesn’t only provide financing but also helps with mentoring
from the lead professionals from Silicon Valley. You have to be a technological
start-up from Armenia to receive support from the fund. Examples of the most
interesting projects, which are financed by the fund are Gecko Robotics, which
offers solutions for the industrial area. Discotech — an application, in which
you can get information about all of the events and parties in the city, book a
table in a nightclub, get a discount, or even a free entrance to a party.

3- SmartGateVC
SmartGateVC is a Silicon Valley pre-seed venture capital fund backed by Tim
Draper and a network of entrepreneurs and professionals from the US, Europe,
and MENA. It focuses on deep tech: Artificial Intelligence (AI), Security,
Internet of Things (IoT) and emerging Computational Biotech, Quantum
Computing, and Blockchain across California, Massachusetts, NYC, Armenia,
and wider Eastern Europe. The Armenian branch of the fund was created in
2017 on the initiative of Ashot Arzumanyan, Hambardzum Kaghketsyan and
Vazgen Hakobjanyan.

Incubators and accelerators

They help start-uppers to launch and develop their projects. Some of them
support entrepreneurs by mentoring and coaching, and others offer financial
aid or help to find financing.

1- Microsoft Innovation Center Armenia

The center was co-founded in 2011 by USAID, Microsoft Corporation and one
of the major business incubators of Armenia - the Enterprise Incubator
Foundation. It targets projects and events that include educational programs
for innovative start-ups.
There is a program of start-up acceleration for those who think about creating
their own start-ups. Entrepreneurs are helped on how to form an idea and
evaluate how feasible it is; promote a product on the local and global markets,
they are also given a possibility to find financing for a project through venture
capital funds and investors.

2- Impact Aim
 The accelerator is created and works supported by the United Nations
Development Programme. It is interested in projects related to agriculture and
recycling food waste, in start-ups whose final product will improve the quality
of life in the region like the green economy, innovative start-ups concerned
with govtech, edutech, fintech and projects that will help to the at-risk
population groups.

3- Enterprise Incubator Foundation

It was founded in 2012 within the World Bank Enterprise Incubator project.
Projects of the incubator cover all the important IT-industry aspects. On the
company level, the incubator strives to detect sustainable business ideas and
turn them into functional start-ups. On the government level, the incubator
promotes the idea of e-governance and helps to form the national brand of
Armenia as an IT state. The incubator is a partner of a range of international
companies and organizations.

4- Entrepreneurship and Product Innovation Center (EPIC)

It is an incubator of American University in Armenia (AUA), helping students,
alumni and other entrepreneurs to develop and promote their projects from
an idea to a functional products. The center offers a co-working space,
specialized programs and events, communication with coaches, consultants
and mentors.
5- Catalyst Foundation
It specializes in technological entrepreneurship and has masterminded Al
Incubator — a 26-week incubation program, in the framework of which, the
representatives of technical companies work with students of leading
universities. Projects are dedicated to such topics as cryptocurrency, robot
technics, marketing automation, cyber-security, quantum calculations, media
and computational biology.
Armenia Start-up Academy is one of the Catalyst Foundation’s initiatives, it is a
game-changing entrepreneurship and startup education program, which aims
to prepare startups to raise their pre-seed rounds and expand to global
markets through its Pre-acceleration and Traction programs. The Academy
launched in October 2017 with the support of the “Support to SME
Development in Armenia” (EU-SMEDA) Project within the EU4Business
initiative.
Hero House is another initiative from the Catalyst Foundation, It is basically an
innovation hub in Yerevan, Armenia, aims to enable more heroes to spread
freedom, progress, and change in Armenia and the world through a creative
environment to keep the entrepreneurial spirit of hero teams burning.
Hero House in Southern California is an expansion. It is an entrepreneurship
hub in Glendale, CA that combines the scientific potential of local leading
universities with the expertise and network of business leaders in
entertainment, aerospace, bioscience, and advanced transportation located in
the Los Angeles area.

6- Start-up Grind Yerevan

A Yerevan branch of the world’s largest independent start-up that is sponsored
globally by Google. It unites more than 2, 000, 000 entrepreneurs.

7- Beeline Startup Incubator

It was created in April 2018 by the initiative of the largest TV-broadcasting
company in the state - a Closed Joint-Stock Company (CJSC) “VEON Armenia”
(Beeline trademark). It helps Armenian start-ups with trainers, mentors and
investors that work in the digital industry. Plans specialized events for
innovative entrepreneurs like workshops, learning courses and etc.
 Welcome to Armenia: The promising tech hub

Armenia is a landlocked country in the Caucasus with limited natural resources.

It doesn’t have any ports but, has the human capital, which is doubling down
as high-tech research and development have become a national priority
objective, especially after the Armenian Revolution of 2018 that helped take
steps towards developing its high-tech sector. Many of the world’s most well-
known technology firms including Intel, Microsoft, Google, IBM, Synopsys, and
Cisco…etc have a physical existence there.
In 2011, Microsoft Corporation established an Innovation Center in Yerevan,
and in the same year India set up a joint Center for Excellence in Information
Communication Technologies at Yerevan State University. As a response, the
Armenian government opened information and high-tech office at the Plug
and Play Center in Silicon Valley in December 2012.

The Soviet Union's legacy

Part of Armenia’s rapid success in the global tech world was due to the
country’s heritage as an education center as, since the time of the Soviet
Union, Armenia had the best schools that qualified it to be the Soviet Union’s
scientific hub and center of its research activities, providing nearly half of the
high-tech needs of the Soviet military. This heritage is still alive today in how
society embraces and values education and hard science.
“We have small resources and high technology is one of the main directions of
the Armenian economy to overcome the blockade and to import and export
our educational brands outside,” said Arayik Harutyunyan, Armenia’s Minister
of Education and Science.

Armath Laboratories
Karen Vardanyan is the man who improved the technological studies of
Armenia’s students. In 2014, he started a program called Armath, which aimed
to put robotics laboratories in rural schools across Armenia.
At Armath Engineering Laboratories kids aged 10-18 are introduced to science,
technology, engineering, and math education through interactive after-school
classes, exciting competitions, innovative camps and more.
Armath Engineering Laboratories program already shows great results.
According to "Grant Thornton Consulting" CJSC assessment
84% of Armath students were admitted to the University
39% were working and studying
45% of employed students were involved in programming, 29% were involved
in other areas of the IT sector and the rest were involved in engineering and
technical jobs
12% of employed students have founded start-ups.
The salaries of employed or start-up-founded students were between AMD
50,000 and 300,000, averaging AMD132, 561.

Information and communications technology (ICT) sector

Armenia considers itself a destination for tech-related investment owing to a
historical deep bench of talent in mathematics and the natural sciences, good
and growing levels of English proficiency, several good university programs,
competitive labor and operating costs, government support for the sector, a
strong diaspora network, and existing relationships with large multinational
companies as part of global value chains.
Armenians are no strangers to the digital sector, with Avie Tevanian, a former
senior vice president and former chief software technology officer at Apple;
Alexis Ohanian, co-founder of the social news website Reddit; Vahé Torossian,
corporate vice president of Microsoft’s Worldwide Small and Mid-market
Solutions and Partners (SMS&P) organization; Katherine Safarian from Pixar,
and an Oscar recipient; Zareh Nalbandian co‐founder and CEO of Animal Logic,
one of the world’s leaders in digital animation; and many others.
The Armenian government actively supports the development of the ICT
industry. It has worked in close cooperation with international donors,
including the United States, to improve the competitiveness of Armenian ICT
firms in the global marketplace.
Additionally, the country has hosted several major industry events that draw
international attention. The 2019 World Congress on Information Technology
drew an estimated 2,500 participants from over 70 countries. The Foundation
for Armenian Science & Technology hosts an annual Global Innovation Forum
that attracts major speakers. The Enterprise Incubator Foundation, a local
industry group, hosts an annual ArmTech conference, while another industry
group, the Union for Advanced Technology Enterprises, organizes a regular
DigiTec conference. In recent years, Armenia has hosted an Engineering Week
to develop the engineering and industrial component of Armenia’s ICT
industry.
The available opportunities are huge as Armenian culture is so hungry for hard
science and hard math, which means that there can be an ecosystem of
talented AI developers who will boom because it is a skill set that is only going
to increase in value.
 Armenia's top 10 start-ups

Armenia is taken into account as a world-class techno-hub whose government

relies on information technology in its long-term economic development
strategy, as Armenian firms enter the international market whereas
international corporations open branches and engineering offices in Yerevan.
Startups with Armenian roots are gaining fame and use in all spheres and
across the globe.
Armenian entrepreneurs make use of such local advantages as a strong
technological school inherited from the Soviet times and one of the largest
Diaspora with an active presence in Silicon Valley. For the past several years
Armenian tech sector retains 27%+ consistent annual growth, all of the start-
ups are oriented to the international market, and raised financing from
international VC companies while the products they produce are applicable in
life and business.

1- SmartApaga
SmartApaga LLC is a private waste management service used by over 1000
households and organizations in Yerevan. It is a fully integrated, multi-sided
platform for solving waste logistics and consists of an app connected to a
network of IoT smart recycling containers and dedicated QR code-based
identifiable eco-bags.
Originally founded by two UWC Dilijan students and a Canadian Armenian
repatriate, it now has evolved into a tech startup with a solid team of
developers led by seasoned developer Arshak Ghazaryan and his team for iOS
& Android devs as well as a team of designers, WEB designers, and business
professionals.

2- Krisp
Krisp is an AI-powered noise-canceling app that removes background noise and
echoes during online calls in real-time, by detecting human voice, selecting
only that part and cutting the rest of the signal. It is privacy-centric and
performs all the audio processing locally on your device.
It works across any communication, conferencing, streaming and recording
app and can be used with any wired or wireless microphone, speaker and
headphones. In 2018 Krisp won Golden Kitty Award as a Product of the Year in
the category of Audio & Voice.

3- 360 stories
360Stories is a platform and online community featuring user-generated travel
stories, each captured in high-definition 360-degree video or photography and
led by real-time guides virtually on the web or from the convenience of your
smartphone.
Originally founded by Albert Poghosyan and Vahagn Mosinyan. It started off
featuring only Armenian sights. The Ministry of Culture of Armenia assisted the
company in the process and helped capture notable places in Armenia. As for
now, 360Stories' collection includes multiple cities and activities.
Besides exploring the world in VR and AR, visitors of the website can buy one-
day tours and attractions online in the destinations presented on the site.
360Stories is changing the process of booking travel activities and making them
more immersive.

4- Chessify
Chessify promotes Armenian chess culture to the world with its multi-service
tool for beginner, advanced and professional chess players, with the majority
of users registered from India, the USA, Russia, and Norway. It was Founded by
Gor Vardanyan, Hambartsum Petrosyan in 2016.
Utilizing machine learning and artificial intelligence provides a variety of tools
like mobile application for learners, chessboard scanner and live streaming
tools, and flexible cloud analysis service with an AI engine also reduces the
time spent on learning chess by 30%.

5- DataArt
DataArt is a global technology consultancy that was founded in 1997 in New
York City and specializes in building software products and enterprise systems,
system modernization services, providing services of production system
maintenance, digital transformation, innovation, and security testing services
for a product or infrastructure.
In 2019 DataArt announced the opening of the research and development
(R&D) and sales office in Armenia. Yerevan office will support the company's
activity across all the spheres but mainly focus on quality assurance (QA) and
support, as well as business development.

6- Disperse.io
Disperse is an artificial intelligence construction startup focused on improving
on-site productivity utilizing visual recognition and computer vision
techniques. CV keeps up with the progress and detects anomalies, 360° site
scanning option captures every little detail. While the possibility of continuous
feedback engaging everyone involved in the process helps to optimize the
workflow and flag early warnings.

7- Embry Tech
Embry Tech was founded in 2017, develops hardware and software solutions
for a shoe to turn it into biometric data tracking and wellness monitoring
device. Patent-pending technology measures weight change, number of steps,
cardio and sitting time, and calories burned throughout the day. Plus, the app
gives wellness insights. With time Embry Tech is planning to turn the shoe into
a medical device gathering all the health data.
8- AppearMe
AppearMe is a real-time, on-demand web and mobile application that
connects with thousands of attorneys within minutes. It is a way to find an
attorney for a variety of cases: civil, criminal, business, or family law. For the
professionals, it is a place to refer a case or accept a pre-screened case.

9- SoloLearn
SoloLearn is a free mobile social platform to learn and practice coding with the
largest community of mobile coders in the world. It offers courses in 13 areas
from HTML, PHP and Java to Swift, С# and Ruby from beginner to pro level.
Currently, more than 28,600,000 learners all over the world use it on all types
of devices.
The company was launched in 2013. In the beginning, it was an educational
platform offering a variety of courses from HTML to photography. Later the
company shifted the full focus to programming languages. According to the
rough estimations, 25% of the users are coming from India, 25 – from the US,
the rest is divided between the European countries.
In 2017 the app won the title of the FbStart App of the Year, the winner is
chosen among the alumni of the Facebook FbStart accelerator.

10- Vineti
Vineti is a cloud-based platform created to significantly simplify access to cell
and gene therapy personalized cancer vaccines, connects the right patient to
the right therapeutic product, on time and on track. It was established in 2016
by Heidi Hagen, Emmy Duross, Nerses Ohanyan and Razmik Abnous.
The personalized Therapy Management platform is serving as an ecosystem for
all actors involved in the process of manufacturing and distribution of the
treatment (doctors and nursing staff, interacting with a patient, drug
manufacturers, logisticians, and couriers).
Vineti's management platform is aimed to improve operations, minimize
human factor and make sure products comply with regulations and standards.
 5 Armenian start-ups link Armenians in the diaspora

The Armenian diaspora is of great importance to their motherland so,

supporting, encouraging repatriation and the integration of returned
Armenians to explore the potential of the Armenian diaspora worldwide is
essential. Many initiatives, start-ups started to push up and support this trend
especially, as the Armenian repatriates and expatriates are still facing
difficulties in finding access to direct and effective public service information.

1- A+ Academy
One of these startups is A+ Academy that offers Online Tutoring Classes for
Diasporan Armenians with Armenia. Narek Shamamyan is the founder and the
enlightened mind behind this great initiative.
The academy provides online private and group classes on Math, Coding,
Sciences, Eastern and Western Armenian Language, Armenian History,
Armenian Culture and Traditions, English, Russian, Arabic, and many more.
Most of the classes are available in both English and Armenian. The tutors
come from all over Armenia and have been selected based on their skills,
knowledge, and professionalism.

2- reArmenia
reArmenia is a collaboration platform uniting Armenia and Armenians around
the globe through knowledge, professional experience, and material support.
It is a Non-Governmental & Nonprofit Organization concerned about the
problems of the homeland raise issues related to 14 spheres or coming up with
proper solutions.
The highest management and control body of reArmenia consists of 5
members:
- David Hakobyan - Advisor to the minister of high-tech industry of
Armenia and Chairman of the Board.
- Greg Bedian - Director, Tufenkian Foundation and Board member.
- Armine Mkrtchyan - CEO, Merakipal and Board member.
- Narek Vardanyan - CEO, TheCrowd Funding Formula, and Board
member.
- Mariam Hambardzumyan - President, GlobalAm and Board member.
Also, it is the first Armenian platform committed not only to fundraising for
existing initiatives but also to bringing together those passionate about new
projects to create teams and providing a framework for teams already working
to invite new collaborators.

3- Hye Combinator initiative

Nicholas Cabraloff- an investment analyst at Whale Rock Capital Management-
and Chris Abkarians-co-founder of Juno fintech- who graduated from Harvard
Business School, designed and launched this initiative to give a fresh boost to
the development of Armenia's technological community, by helping Armenian
start-ups with rich experience and knowledge of ethnic Armenian ICT
specialists living in the USA. And to achieve that a mentoring platform has
been created to unite Armenian IT entrepreneurs and stimulate the
development of technologies in Armenia. Both mentors and entrepreneurs will
be able to communicate and cooperate, as well as receive advice.
The project is built on the Slack platform, which allows the creation of different
groups by topic, for example, finance, sales and marketing, strategy, legal
issues, human resources, and more. Participation is free, just fill out an
application on the website, indicate your data, links to Linkedin, and a short
description of the business.

4- Hye Box
Living and rising in a small but historically and culturally rich country with
different global and local challenges, allowed the twins Elen and Elmira
Gabrielyan, to found their start-up about two and a half years ago. It started as
a gift box with Armenian crafts and books for children then turned into a family
box. They deliver homeland-made products to the US, Canada, Europe, and
Australia.
The main purpose remained the same: to work with small businesses,
entrepreneurs, artisans, and artists and allow the diaspora to keep in touch
culturally with Armenia, discover Armenian products and support the
Armenian economy which has never been this fun.

5- Yerevan Impact Hub

It is a part of a global network of locally operated impact innovation
incubators, accelerators, coworking spaces, and nonprofit organizations that
collectively own and govern Impact Hub Company, based in Austria. It
connects entrepreneurs and innovators, as well as large organizations,
investors, and the public sector, to enable inclusive and sustainable innovation
at scale and to tackle challenges through collaboration.
The hub takes impactful initiatives from the idea stage to implementation,
through many programs like:
- NAGORNO KARABAKH ENTREPRENEURSHIP INCUBATION PROGRAM
- PRAGUE CIVIL SOCIETY CENTRE / IMPACT HUB YEREVAN / SUSTAINABILITY
THROUGH SOCIAL ENTREPRENEURSHIP
- SOCIAL IMPACT AWARD 2021
- ZARTIR FELLOWSHIP 2021
 Green initiatives in Armenia: Forests VS Climate change

According to the World Bank, Armenia ranks as the fourth most vulnerable
country in terms of climate change risks, so it has signed up to increase its
forest cover and carbon removal from forests, as its forests are sensitive to
climate change, while its rural population is dependent on fuelwood to meet
its energy demands. It faces considerable climate risks, especially the increased
frequency of extreme weather events and their aftereffects – droughts,
flooding, landslides, and wildfires.
Such natural disasters destroy livelihoods and retrench the country’s already
limited capacity to mitigate and adapt to climate change. This could lead to a
self-perpetuating cycle, which would threaten Armenia’s agricultural sector,
ecology, and infrastructure. Still, the country has the possibility to reduce the
risks thanks to its forests that reduce the depositing of sediments in Sevan
Lake, which helps face water pollution, protects wildlife habitats, and keeps
water levels stable. Trees and underbrush also capture and store CO2 from the
atmosphere which is crucial for preventing climate change.
Preserving forests is a major priority, as deforestation has been caused by
mining operations, illegal logging, and use for firewood, but forest fires and
pests also threaten to intensify desertification, leading to disequilibrium of the
country’s waterways, and causing significant loss of biodiversity and valuable
pastureland.
Yet, Armenia is one of the least forested countries in the Eastern Europe and
Central Asia region. With only 11.2% forest cover, 70% of its woods are
degraded, and forest-covered areas are gradually turning into grasslands.
Current climate trends and projections for the country indicate future elevated
average temperatures, precipitation, river-flow decreases, and snow cover
reduction.

Sustainable Forestry is the key point

Forest preservation is so crucial for meeting Armenia’s climate commitments,
especially the country’s Nationally Determined Contribution (NDC) efforts by
countries under the Paris Climate Agreement to reduce national emissions and
adapt to the impacts of climate change, as its plan for 2021-2030 aims to
reduce the greenhouse gas (GHG) emissions by 40% from 1990 emission levels
and increasing forest cover to 12.9%.
The World Bank is conducting a study of the opportunities for restoring forest
landscapes across Armenia Through funding from the NDC Support Facility, a
multi-donor trust fund. It consists of assessments of the legal and institutional
needs, potential species for restoration, and possibilities for private sector
participation also complements the government’s 10 million trees
afforestation initiative, identifies restoration interventions, and lays out a path
going forward to achieve the NDC target on forests and eventually on GHG
reduction.
The study also recommends ways for restoring various types of existing forests
and proposes a potential mix of indigenous species for plantation in already
forested and non-forested areas, which will consequently help the country to
adopt a data-driven, results-oriented, and multi-stakeholder approach to
forest restoration—increasing the chances of success.

GREEN Armenia platform

The assessments on forest landscape restoration will be an important factor
contributing to the upcoming GREEN Armenia platform which will be
established together with development partners, including the World Bank, to
support and advocate for Armenia’s “green” recovery and transformation. This
platform will incubate innovative ideas, harness technological opportunities,
and tap into global knowledge.
The European Union projects
The ‘EU4Environment: Green community – resilient future’ project,
implemented by a consortium led by the ‘Armenia Tree Project’, will promote
urban green planning and green energy solutions. During the next three years,
tree plantations will supply seedlings for urban greening initiatives will be
established in 15 municipalities in Shirak, Lori and Tavush, with the aim of
planting 458,000 trees. To promote eco-friendly behavior, 7,000 schoolchildren
in these regions will be trained and involved in environmental education,
awareness-raising campaigns, eco-clubs, eco-camps and annual clean-up
initiatives.

FAO and WWF Armenia efforts

The Armenian branch of the World Wide Fund for Nature (WWF) signed the
co-financing agreement for a total amount of USD 200,000 as an in-kind
contribution to partner with the Food and Agriculture Organization of the
United Nations (FAO) for a forestry project on enhanced adaptation and rural
green growth.
WWF-Armenia will co-finance the project alongside its duration of eight years,
and provide technical, financial assistance related to community engagement,
participation in forest management, and the creation of new forest areas in
municipal lands in Syunik Marz. Besides, the project will rely too on co-
financing and technical expertise from the Armenian government, the Austrian
Development Agency, the Autonomous Province of Bolzano, Italy, and FAO.
It is the first large-scale FAO project to be supported by the Green Climate
Fund (GCF) in Europe and Central Asia and Armenia’s first forestry-oriented
funding proposal. It will increase the role of communities in governing and
managing natural resources through forest concessions and improved
fuelwood management, timber production and non-timber forest products.
The agreement was signed by Karen Manvelyan, Director of WWF-Armenia,
and Raimund Jehle, FAO Representative in Armenia.
 Armenian tech accomplishments 2021

1- Two Armenian startups won the grants of Revive program which is a part of
a larger UNDP Veterans Support Program under the UNDP Tech2Life Auxiliary
Technologies for Self-Sufficiency.
AIPTech is an Armenian implant startup that uses a 3D printer to produce
biodegradable, bioactive adapted implants.
The startup will receive a $ 7,000 grant from Revive to start the patent
application process.
Oqni is an Armenian startup producing artificial limb prostheses based on
artificial intelligence, providing integrated rehabilitation assistance.
The Revive will receive a $ 2,000 grant from the Revive program to provide
professional assistance in obtaining the necessary certification.
2- Armenian Armath engineering laboratories expand to #Dhaka, #Bangladesh.
It’s noteworthy that at the moment around 600 Armath Engineering
Laboratories operate on the territory of Armenia (including Artsakh), Georgia
and India, where around 15000 students get free engineering education.
3- Two Armenian startups selected from among 100,000 registrations in 200
countries will compete for a share of $1 million prize money and additional
benefits.
In the Entrepreneurship World Cup (EWC) Global Finals, organizers announced
on October 4, 2021. Denovo Sciences "VardanHarutyunyan and
MherMatevosyan" and Zoomerang "DavidGrigoryan, co-founder of
Zoomerang", are among the 100 startups known collectively as the
Entrepreneurship World Cup 100 (EWC 100) that have advanced to the next
stage of the competition.
Denovo Sciences is a deep technology company that creates novel therapeutics
using state-of-the-art AI technologies, and Zoomerang is an application for
creating/editing state-of-the-art short-form videos.