Well-known entrepreneur, leading IT expert, author of global international projects Alexey Kocherev spoke about the trends in the IT industry and the development of young startups in Ukraine.
You are one of the leaders of the Ukrainian IT industry. Tell us what the main trends in this market are?
—The trends of the Ukrainian IT industry are determined by the needs of business and the end consumer. In Ukraine, this is, perhaps, the active growth of business involvement in IT projects, the strengthening of the influence of electronic payment systems, the development of cloud technologies and online learning. I also want to note the growing mobility of business thanks to the development of information technology.
—In your opinion, how can the state influence the development of the IT industry?
—You could write a whole monograph about this (laughs). The IT industry is capable of bringing enormous dividends to the country. But for this, the state must create a favorable environment for doing business.
First of all, it is necessary to introduce a preferential tax system for players in this field. It is also important to carry out reforms in the education system to improve the level of IT knowledge. The legislative framework governing intellectual property must be put in order.
And the main thing: we don't need to come up with anything, just adopt the experience of other countries that successfully develop and support the development of IT. Take, for example, our closest neighbors - Poland or Belarus. At the state level, they have created many technology parks that attract specialists from all over the world. The future and a large influx of money are in this.
—Can IT become the salvation of the Ukrainian economy?
—This is a very promising sector of our economy, which can become one of the leading ones. But it's too early to talk about it now. Despite the fact that Ukraine is the leader in the number of IT specialists in Europe, most IT companies provide outsourcing services. Geographically, the product is created in Ukraine, but its monetization occurs abroad. And young startups cannot develop in Ukrainian realities without large investments.
I am sure that all this can be gradually changed if the state pursues an effective consistent policy for the development and support of the industry. And perhaps the country will turn from a supplier of engineering resources abroad into a comfortable environment for the work of IT companies and specialists who will actively develop this promising sector.
—The military actions in eastern Ukraine have had a very negative impact on almost all sectors of the Ukrainian economy. How did this affect the IT sector?
— Regarding investments: if the project is promising in terms of benefits for the investor, then no military action can be an obstacle to investment. Take statistics: in 2015, Ukrainian IT companies received about 230% more investment than in 2014. And almost half of the cash infusions are from international investors.
A good example of the growth of the IT industry during constant military operations is Israel. The export of high technologies brings the country about $25 billion a year - this is 36% more than our income from the export of metallurgical products. By the way, one of the keys to the success of IT in this country is the high level of government orders for the military-industrial complex.
—What business projects are you currently working on?
—One of the projects I'm working on is the creation of a secure cloud storage using distributed computing technologies, which is built on a decentralized scheme - all encrypted information is fragmented and stored in several places. At the same time, the user has 24/7 access to it from anywhere in the world.
Also, together with a group of scientists, I am participating in the creation of one innovative invention that can overturn all our ideas about the existing laws of physics. Perhaps soon we will be able to prove the phenomenon of direct generation of energy - both mechanical and thermal, and electrical - using a plasma-frequency installation and battery power. At this stage, we are testing the product. If all tests are successful, a presentation for potential investors and the media will take place in the near future.
—In recent interviews, you often mentioned plans to invest in interesting Ukrainian IT startups. Tell us more about this project.
— There are plenty of unique engineering ideas in Ukraine that are difficult to implement due to lack of financial resources. My foreign colleagues are very interested in investing in young innovative projects. As an IT specialist, I was invited to head a fund that will select and audit startups, and then distribute funds for their business implementation. Thanks to this, I will have the opportunity to make a great contribution to the development of the IT industry in Ukraine, which is the future of our country. By the way, the first selection will start in early 2017.
—What startups will be able to participate in your selection?
—These can be any startups in the field of IT, developing mobile applications, Internet services, information systems, new processes and approaches to the organization of IT services, wearable devices and other equipment. We also plan to invest in developments and experiments in the field of physics. We are interested in both already operating startups and projects at the idea stage.
—Is it already known what criteria projects must meet in order to pass the selection?
—First of all, in the selection process, startups with unique innovative ideas or a product that can be relevant in the Ukrainian and international markets will have an advantage.
Secondly, the teams must demonstrate a working project model. For a device or equipment, it is important to show a prototype, into the creation of which we are ready to invest, if the idea interests us at the initial stage of selection and can make a real breakthrough in its field.
An important criterion is the startup team, which consists of specialized specialists, "burns" with their business and is ready to work hard to develop the project.
—What amount of investment can the winners of the selection count on?
—Different projects require different investments, the volume of which will be determined in the process of selection and audit of startups. We are ready to attract not only financial resources for the development of the project, but also to help carry out operational activities, as well as provide everything necessary for the development of the workflow - from space to leading specialists.
—How and when will the startup selection process take place?
—The first stage is filling out an application form on a special Internet portal, which will be launched in early 2017. The selection will be carried out by the fund's team, as well as involved Ukrainian and foreign IT industry specialists. The second stage will be interviewing selected startups and conducting a preliminary audit of the projects. The presentation of the winners will take place as part of a specialized educational event, to which leading global and Ukrainian IT leaders will be invited.
In the near future, an announcement of the initiative, its concept and the implementation period will be made through print and online media, social networks and our official resources. All those wishing to take part in the event will have access to a large amount of information.
—You yourself also started your business once. What is the secret of the success of your startups?
—There is no secret. Hard work, love for your business, leaving time for self-education and self-improvement, the ability to get along with people, dream and believe in yourself - these are the keys to building a successful business.
—What advice would you give to young IT professionals?
—You can read all the advice on the Internet, and I would like to add from myself: "Be creative and bring your boldest ideas beyond the existing frameworks and stereotypes!"