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    Home»Tech News»How Armenia is trying to build a Silicon Valley in the Caucasus
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    How Armenia is trying to build a Silicon Valley in the Caucasus

    The Daily FuseBy The Daily FuseApril 28, 2025No Comments6 Mins Read
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    How Armenia is trying to build a Silicon Valley in the Caucasus
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    Rayhan Demytrie

    BBC South Caucasus correspondent

    BBC Nine-year-old Slavik shows his inventionBBC

    Younger Armenians, similar to nine-year-old Slavik, are attending know-how courses

    In Armenia tech schooling begins early.

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

    “He has realized how one can management it, and the programming language. You possibly can 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 sensible greenhouse mannequin that displays temperature and controls followers mechanically by a cell app.

    Different youngsters are enthusiastically showcasing their innovations: video games, robots, apps and sensible 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 machine is about on the roof, and one other is a motor,” he says. “When it rains the road goes underneath the roof to maintain the garments dry.”

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

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

    The initiative was established by a enterprise organisation known as the Union of Superior Expertise 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 Pictures

    Armenia and its capital Yerevan, pictured, had been a centre of maths and computing in the course of the Soviet period

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

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

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

    “The aim is to have 5,000 of essentially the most gifted children resolve to turn out to be engineers yearly,” says Mr Karapetyan.

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

    Not like its neighbours, Armenia doesn’t have pure assets or entry to the ocean. However all through the Soviet period it had been a centre of arithmetic and laptop 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.

    Right now, the nation is tapping into its legacy with the ambition to remodel 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. Right now the corporate of the identical identify, 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 perfect nation within the Caucuses area during 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 Pictures

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

    A essential think about boosting Armenia’s tech improvement is the nation’s world diaspora – some 75% of the world’s estimated Armenians, and folks of Armenian descent, dwell elsewhere.

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

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

    He says that when you have a look at the highest 500 firms within the US, “for positive you may discover a minimum of 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 individuals deciding to go to the US to attempt to function there, they don’t have any connections, no data concerning the tradition the way it works.

    “It is gonna be exhausting, very exhausting. 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 check their merchandise of their residence market.

    Irina Ghazaryan, is the founding father of an app known as Dr Yan that’s altering how Armenians entry healthcare by enabling them to extra simply ebook appointments with medical doctors.

    Ms Ghazaryan was beforehand working in product and net design when, helped by the very fact she comes from a household of medical doctors, she recognized a spot out there. “Sufferers could not discover the proper medical doctors, and medical doctors had been affected by infinite calls.”

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

    “We’re rising a minimum of 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 develop her medical app Dr Yan overseas

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

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

    Vasily is a Russian IT guide who relocated to Armenia in 2023. “Armenia was essentially the most pleasant to individuals from Russia with the intention to assist them transfer, adapt and so forth,” he says.

    He estimates that that the Russian IT group in Armenia now totals 5,000 to eight,000 individuals. This inflow has mentioned to have crammed essential talent gaps in Armenia’s tech sector, in areas similar to knowledge processing, cybersecurity, and monetary applied sciences.

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

    Nonetheless, 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 Trade final December, and is now value greater than $10bn.

    Learn extra world enterprise tales



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