Doing business in Armenia։ a perfect timing for startups

26 August, 2021

 

The current economic situation in the context of the global recession may be seen as a new opportunity for the development of new start-ups in those regions that are most prepared in material and technical terms. Therefore, business in Armenia with the aim of creating startups remains the most attractive as the South Caucasian republic has every chance of becoming a world-renown technological center.

There are several reasons for this: active government measures aimed at instrumental support for development ideas and scientific breakthrough, a strong pool of highly skilled workforce, as well as a stable basis for the revival of the technological sector which was historically strong since the Soviet era. At the same time, tax incentives are envisaged 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.

Doing business in Armenia – rapid development of existing and new startups in Yerevan

Some Armenian startups have already gained world-known reputation, and over time these companies increasingly have strengthened their positions, demonstrating steady growth and development. Here are some of the many success stories:

  • Krisp – the well-known real-time noise reduction application (during the pandemic, especially in view of increased number of users working remotely, the number of downloads grew by approximately 700%);
  • PicsArt  – video, photo editor,  developed and launched in 2011 (currently available in 30 languages worldwide, ​​for Windows , iOS and Android);
  • SoloLearn  – social mobile application  (since 2013);
  • IntelinAir –  application for the agricultural industry which allows you to identify and eliminate problem areas for the farmers;
  • Vineti  platform for the correct selection of the treatment process based on advanced technologies.

Read more about these large-scale developments by Armenian startups and researchers in this article.

New development from Armenian Expper Technologies  – a robot named Robin, which allows children to adapt to clinical conditions and not be afraid of doctors, is another remarkable startup deserving special attention. At the moment, the startup has been tested in one of the private clinics in Yerevan, and aroused interest from the United States, which are ready to test the device in their own medical institutions. According to the founder of the company, Karen Khachikyan, two practicing psychologists took part in the development of the robot in order to create a device that maximally understands the psychology of children, is able to recognize emotions and remembers conversations with a specific child in order to avoid repetitions.

According to the software developer of the project Areg Gasparyan, the achievement today is based on four years of extensive work, aimed at educating Robin to go beyond just soothing functionality  in hospital conditions, and be able to assist in education purposes. Doctors who have used the startup in their clinic report that it is much easier for Robin to establish rapport with children, including those with disabilities or serious diagnoses. In the United States,  clinics in California and Massachusetts will be the first to host this nanny robot.   

Doing business in Armenia – comprehensive development and support at the government level

Upon 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. In addition, the opportunities for international cooperation in science and technology parks are expanding: venture funds and business angels are expanding in Armenia.

Having analyzed the available information on the Armenian technology sector, we can confidently say that this is an ideal platform for research and innovation. Indonesia has already explored and praised and advantages of the small Caucasian republic in the field of technology, and 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.

At the same time, the international technology company DataArt Solutions is interested in cooperation with Armenia, given the vast prospects and opportunities of the IT sphere and technologies of the financial (fintech) sector). DataArt will focus on sectors such as media, finance, travel and healthcare.

Also at the end of February, the Minister of High-tech Industry of Armenia, Mr. Hakob Arshakyan visited the UAE, within the framework of the UMEX / SimTEX 2020 exhibition, where issues of cooperation in the field of navigation systems based on artificial intelligence were discussed. In addition, Armenia presented the “Soldier of the Future” project to the UAE authorities, aiming to combine efforts of the two countries for introducing high technologies in the sphere of defense and military industry. 

In the coming months, the government’s agenda includes a package of regulations for the crypto and blockchain industry. During the period of quarantine and a state of emergency, the government organization that proposed the package of regulations, together with the authorities, is remotely finalizing the package in order to bring it to parliament in April-May.