During the year, Armenia witnessed a rise of 19 major IT companies
During the year, Armenia witnessed a rise of 19 major IT companies
In the first quarter of 2024, 84 IT companies were among Armenia's top 1000 taxpayers, up from 65 IT companies in the same period the previous year.
In the past year, Armenia welcomed 19 new major IT companies. According to Modex, the first quarter of 2024 saw 84 IT companies among Armenia's top 1000 taxpayers, up from 65 the previous year.
These firms collectively contributed 20.8 billion Armenian drams in taxes, reflecting a 4% increase. However, eight of the top 20 IT taxpayers saw reduced tax payments, notably Veeam Armenia, DataArt, and NVIDIA, mainly due to lower income tax contributions.
According to the Global Startup Ecosystem Report by StartupBlink, Armenia holds the top position in the Caucasus region, with a score double that of its nearest competitor, Georgia. This ranking is based on three key factors: quality, quantity, and the business environment. In 2023, Armenia’s startup ecosystem climbed three spots, reaching 15th place in Eastern Europe and 57th globally.
Armenia's Tech and Startup Scene: A Year of Expansion and Innovation
The number of IT companies in Armenia has doubled since 2022, with a 30% growth in employment, showcasing the country's thriving tech sector and its allure for global talent.
Startup Surge: Armenia's startup ecosystem has made impressive strides, rising three spots in both Eastern Europe and globally according to the Global Startup Ecosystem Report by StartupBlink. This progress has attracted substantial venture capital, with Armenia securing 90% of the region's investments.
New Support Initiatives: Initiatives like "From Idea to Business" offer funding for startups to commercialize projects, while "Neruzh" taps into diaspora expertise.
Expansion of Established Players: Major global tech firms are taking notice of Armenia's potential, exemplified by Yandex's establishment of offices, adding to the country's tech vibrancy.
AI Dominance: Generative AI has taken center stage in Armenia's tech landscape, with many startups leveraging AI in their products. Picsart, a local unicorn, leads in AI-driven image generation.
Tax Incentives: The "On State Support of the IT Sector" law continues to provide tax breaks for startups, fostering an innovation-friendly atmosphere.
Overall, Armenia's tech and startup ecosystem is flourishing, with rapid growth, substantial investments, and an ecosystem conducive to tech innovation and entrepreneurship.
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