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Alex Miller, Business Partner of AllStars-IT Ukraine: “I see Ukraine as an IT-nation”

Alex Miller, Business Partner at AllStars-IT Ukraine, shared how Israel became a startup nation and what Ukraine can learn for the development of its IT-sector in the interview to Investory.news during Ukrainian Israeli Innovation Summit in Kyiv.


▪  Initially, if we compare the process of how Israel has come to its present achievements, we see that it has been built up the whole system connected with the development of the IT-sphere. Startups are a derivative of it. If you look at the investments made by the state in IT, then last year it was approximately up to $ 500 million.

But there is important to understand where the money was invested. It was invested in a strategic plan developed by the Innovation Office. Specifically, it was invested in startups that might have been attractive but in ones that were serious enough to pass a commission assessing the startups.

The Innovation Office has mainly invested in two areas that are currently a priority for Israel. it is Personalized Medicine and Artificial Intelligence. All other industries have received some support, but significantly less. When Israel invests, it does so in terms of the next step in the development of the IT industry.

▪ The second thing to understand is that the main investment from where the IT industry came from is research. In Israel, universities make researches, receive grants, create technological greenhouses on its basis, and are already preparing those “minds” that come to startups and develop them.

You also need to understand that out of 100% of startups that appear in Israel only 1% comes to the result.

▪  No less important point concerns the creation of funds. This is to ensure that start-ups eventually be useful for the state or business or appealing to those who create the fund. There should be a clear state strategy regarding where the money goes and what result it should bring. The same thing happens in the business sphere: it reacts to the market.

▪  Today, if I’m not mistaken, about 30% of Israel’s outsourcing is in Ukraine. For understanding, a few years ago it was mostly from India. In other words, today Ukraine is providing its “minds” to the Israeli IT industry. And, by the way, Israeli tech sector faces a shortage of 15,000 programmers for growing industries in the country.

▪  As far as I know, Ukraine has signed the Free Trade Agreement with Israel. But we are waiting for the second stage – open trade zone service. It must also be adjusted for the market. Now we are talking about the IT industry, which I think will be the main one in the new Agreement.

▪  Israel is now described as a startup nation. I see Ukraine as an IT-nation that has a lot of talent and a good training knowledge base that Ukrainian programmers get when working for international companies. They are invaluable.

Therefore, I think that all this should be a part of the state strategy of IT industry development, which is expanding rapidly in Ukraine today. We can say that the tech industry develops at a fast pace like in any other country in the world.

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