Over the past year, the number of large IT companies in Armenia has increased by 19.
According to Modex, the list of the 1000 largest taxpayers in Armenia for the first quarter of 2024 included 84 IT companies, compared to 65 IT companies in the same period the previous year.
Collectively, these companies contributed 20.8 billion Armenian drams in taxes to the state budget, marking a 4% increase from the previous year’s figures. However, eight of the 20 largest taxpayers in the IT sector saw a decrease in the amount of taxes paid. This decline was particularly significant for Veeam Armenia, DataArt, and NVIDIA, primarily due to a reduction in income tax payments.
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 IT and Startup Ecosystem: A Year of Rapid Growth and Innovation
The number of IT companies registered in Armenia has doubled compared to 2022, accompanied by a 30% increase in employees. This surge underscores the country’s burgeoning tech sector and its appeal to both local and international talent.
Startup Boom: Armenia’s startup ecosystem has experienced remarkable progress, climbing three positions in both Eastern Europe and globally, according to the Global Startup Ecosystem Report by StartupBlink. This rise has attracted significant venture capital investments, with Armenia securing 90% of the venture capital in the South Caucasus region.
New Programs: Several initiatives have been launched to support the growth of startups. “From Idea to Business” provides funding to help startups commercialize their projects, while “Neruzh” attracts professionals from the Armenian diaspora to contribute their expertise.
Established Players Expanding: Major international tech companies are recognizing Armenia’s potential and establishing a presence in the country. Notably, Yandex has set up offices, contributing to the dynamic tech landscape.
Generative AI: The tech scene in Armenia in 2023 was dominated by generative AI. Many startups have integrated AI into their products, with some building their entire business models around this technology. Picsart, a homegrown unicorn, has emerged as a leader in AI-driven image generation.
Tax Relief: The law “On State Support of the IT Sector” continues to offer tax breaks for startups, fostering a favorable environment for innovation and growth.
Overall, Armenia’s IT and startup ecosystem is thriving, marked by rapid growth, significant investments, and an environment conducive to technological advancement and entrepreneurship.
— Advertisement on InTech.am —
