Armenia has been on the move to reestablish itself as a rapidly developing, Caucasus-region tech epicenter. The country has a mathematical and computing tradition that extends back to the Soviet Union. Today, that collaborative spirit has the Baltic nation making massive investments in technology education, entrepreneurship and international cooperation. Innovative programs such as Armath, which means “root,” in Armenian, is cultivating an entire new generation of engineers and innovators.
Deployed in schools throughout Armenia, Armath aims to develop the next generation of talent by giving students real-world, hands-on experience in STEM fields. Unfortunately, it’s only able to run 650 labs, reaching as great as they can take on–over 17,000 active students and 600 coaches. We want to encourage at least 5,000 more talented children each year to consider a career in engineering. Launched in October 2022, this initiative is expected to accelerate the expansion of Armenia’s tech industry.
Armenia’s legacy as a center for mathematics and computing goes back to the Soviet period. The opening of the Yerevan Scientific Research Institute of Mathematical Machines in 1956 is considered to be the starting point of this area in Armenia. By 1960, this technical institute had already produced two first-generation computers, laying the groundwork for a robust technical education pipeline.
Fast forward to today, and Armenia is home to nearly 4,000 tech companies, most of which expect significant expansion in their respective industries in the years ahead. One of those success stories is Picsart, an AI-powered online photo and video editor platform recently valued at $1.5 billion. Other prominent startups include Krisp, with its audio-processing software, and Service Titan, offering critical business infrastructure.
Ironically, the current war in Ukraine has proved to be a major boon for Armenia’s tech ecosystem. After the invasion of Ukraine, thousands of Russian IT specialists moved to Armenia, immediately quadrupling the size of the local workforce. The Russian IT community in Armenia now comprises between 5,000 to 8,000 individuals, filling critical skill gaps in areas such as data processing, cybersecurity, and financial technologies.
Armenia’s global diaspora, which constitutes about 75% of the world’s Armenian population, plays a crucial role in enhancing the country’s tech landscape. In the U.S., as many as 1.6 million people claim Armenian heritage. California is home to the largest concentration of this community. Most of these people have deep ties to the tech world, and they offer resources and connections that are essential for any new Armenian entrepreneurs.
To facilitate networking and collaboration between Armenian startups and U.S. tech companies, SmartGate, a venture capital firm, brings Armenian founders to Silicon Valley and Los Angeles for intensive networking opportunities with top investors and industry leaders. Through this initiative, we hope to connect local innovators with more established tech ecosystems around the world.
Armenia ranks 57th globally in terms of launching a company, making it the best country in the Caucasus region for starting a business. This positive climate has lured in big names. Take for instance Chipmaking colossus and U.S. technology market-pivot Nvidia, which just moved its Russian subsidiary to Armenia. These breaks for further develop Armenia’s growing niche as a possible tech haven.
Sarkis Karapetyan, a prominent figure in Armenia’s technology landscape, expressed his vision for the country’s future:
“The vision is that we want to see Armenia becoming a tech centre powerhouse that delivers utmost values to Armenia and to the world.”
The commitment to education isn’t a new trend but is part of Armenia’s long-term plan to develop home-grown talent. Karapetyan noted that they actively seek private sector funding to establish Armath labs in schools while receiving government support:
“We raise capital expenditure from the private sector, we go to the schools and establish Armath labs, we donate the equipment.”
“And the government, the education ministry gives us a budget of $2m (£1.5m) annually to pay the salaries of the coaches.”
That hands-on focus on real-world job training has proven to be a successful formula. Maria, one of the students involved in the Armath program, shared her experiences:
“He has learned how to control it, and the programming language. You can see the code is written by him.”
Yet as Armenia continues to develop its innovation ecosystem, hurdles still exist for startups aiming to penetrate broader international markets. Samvel Khachikyan highlighted some of these hurdles:
“Imagine an Armenian start-up, two young people deciding to go to the US to try to operate there; they have no connections, no knowledge about how the culture works.”
“It’s gonna be hard, very hard. We are helping them; it’s like the launch of the rocket; the first couple of seconds is the hardest.”
Vasily, another advocate for Armenia’s growing tech landscape, emphasized the country’s openness toward newcomers:
“Armenia was the most friendly to people from Russia in order to help them move, adapt and so on.”
As long as Armenia continues to invest in technology education and infrastructure, it is primed for future growth. Irina Ghazaryan from one of Armenia’s startups noted their rapid progress:
“We are growing at least 25% revenue month by month.”