A unique product sells even under rockets: KYIV NOT KIEV interviews Artem Borodatiuk

27/ 09/ 2023

KYIV NOT KIEV, an English-speaking initiative by the Truman team aiming to involve foreigners in a substantive dialogue about Ukraine, continues its Changemakers Season. This season features conversations with businessmen, government officials, and public figures. In a recent episode, Truman’s Tetiana Gaiduk discussed info resistance, a Silicon Valley for military tech, and the prospects of the Ukrainian IT market with Artem Borodatiuk, CEO of Netpeak Group. https://www.youtube.com/watch?v=Psf4w4yVjko Like the rest of life in Ukraine, the war has impacted Netpeak Group, which consists of 23 companies. Artem refers to it as a factory for the serial production of efficient medium-sized businesses. The planning horizon has shortened, and the approach to board meetings has changed: they now meet frequently, set clear objectives, and provide concise reports. Seven of Netpeak Groups businesses generate revenue, including agency companies, the Kiss My Apps startup studio, and businesses developing mobile apps and websites. Despite this, Artem notes that not all companies aim to be profitable. Companies capitalization is increasing, yet liquid money has become scarce - profits are either reinvested in new projects or donated to the Ukrainian Armed Forces. Netpeak Groups partners have managed to collect and allocate up to $2 million for this purpose. Despite the challenges related to the full-scale Russian aggression, opportunities have also emerged. The Ukrainian job market was previously oversaturated, but now, in IT, its an employers market. Its currently easier to fill top-vacancies. In the past two quarters alone, weve hired four people and extended offers to two more. So, weve found six people in six months, whereas previously, wed find two or three in a year, shares Artem Borodatiuk. Hence, hiring has become simpler, but from an economic perspective, things are definitely tougher. Netpeak Group operates on a remote-first principle. About 30% of the companys employees left the country at the onset of the full-scale invasion. Artem is confident that once Ukraine achieves victory, these individuals will return, as there are many advantages to being in Ukraine. He doesnt pay much attention to surveys estimating the percentage of professionals who have left the country and will not return. From his experience, people who have faced challenges value work, opportunities, and life in a broader sense more. Several generations of modern Ukrainians have faced numerous crises and shocks, including war, which required constant adaptation and growth. In this, Artem sees the strength and advantage of Ukrainian entrepreneurs on the global market: we have already learned everything and can do anything. Currently, the state should direct all resources to protect and restore its borders, he responds to questions about government incentives for Ukrainian IT companies to enter Western markets. Regarding the foreseeable future, the state should construct ecosystem structures that will support the capabilities of domestic entrepreneurs. He believes that this is being effectively handled by the Ministry of Digital Transformation and Mykhailo Fedorov. Examples of such ecosystems include Diia City and the Army of Drones, which has flooded the drone manufacturing market with funds, turning Ukraine into a Silicon Valley in military tech. At the start of the full-scale Russian aggression, specialists from the Netpeak digital agency, a member of the group, were waging an information war in Russia and Belarus. They created a special landing page, which was displayed to local users when they accessed the site, featuring photos and videos of real events in Ukraine and calls to protest against their government. EBA invited member companies to join info resistance, following Netpeaks example. Artem Borodatiuk believes that currently, Russians feel much more confident in the informational domain due to their generous budgets. According to data from the InformNapalm intelligence community, Russia spends nearly $3.5 billion annually on information campaigns. Ukraine has plenty of qualified marketing professionals capable of shaping the Ukrainian narrative (successful campaigns by UNITED24, #ArmUkraineNow are examples), but theres a lack of funding for such work. If one gives the monetary equivalent of one F16 to some information center - that would make difference, he says.

Like the rest of life in Ukraine, the war has impacted Netpeak Group, which consists of 23 companies. Artem refers to it as a “factory for the serial production of efficient medium-sized businesses.” The planning horizon has shortened, and the approach to board meetings has changed: they now meet frequently, set clear objectives, and provide concise reports. Seven of Netpeak Group’s businesses generate revenue, including agency companies, the Kiss My Apps startup studio, and businesses developing mobile apps and websites. Despite this, Artem notes that not all companies aim to be profitable. Companies’ capitalization is increasing, yet “liquid” money has become scarce – profits are either reinvested in new projects or donated to the Ukrainian Armed Forces. Netpeak Group’s partners have managed to collect and allocate up to $2 million for this purpose.

Despite the challenges related to the full-scale Russian aggression, opportunities have also emerged. The Ukrainian job market was previously oversaturated, but now, in IT, it’s an employer’s market. It’s currently easier to fill top-vacancies. “In the past two quarters alone, we’ve hired four people and extended offers to two more. So, we’ve found six people in six months, whereas previously, we’d find two or three in a year,” shares Artem Borodatiuk. Hence, hiring has become simpler, but from an economic perspective, things are definitely tougher.

Netpeak Group operates on a remote-first principle. About 30% of the company’s employees left the country at the onset of the full-scale invasion. Artem is confident that once Ukraine achieves victory, these individuals will return, as there are many advantages to being in Ukraine. He doesn’t pay much attention to surveys estimating the percentage of professionals who have left the country and will not return. From his experience, people who have faced challenges value work, opportunities, and life in a broader sense more. Several generations of modern Ukrainians have faced numerous crises and shocks, including war, which required constant adaptation and growth. In this, Artem sees the strength and advantage of Ukrainian entrepreneurs on the global market: “we have already learned everything and can do anything.”

“Currently, the state should direct all resources to protect and restore its borders, ” he responds to questions about government incentives for Ukrainian IT companies to enter Western markets. Regarding the foreseeable future, the state should construct ecosystem structures that will support the capabilities of domestic entrepreneurs. He believes that this is being effectively handled by the Ministry of Digital Transformation and Mykhailo Fedorov. Examples of such ecosystems include Diia City and the “Army of Drones,” which has flooded the drone manufacturing market with funds, turning Ukraine into a Silicon Valley in military tech.

At the start of the full-scale Russian aggression, specialists from the Netpeak digital agency, a member of the group, were waging an information war in Russia and Belarus. They created a special landing page, which was displayed to local users when they accessed the site, featuring photos and videos of real events in Ukraine and calls to protest against their government. EBA invited member companies to join info resistance, following Netpeak’s example.

Artem Borodatiuk believes that currently, Russians feel much more confident in the informational domain due to their generous budgets. According to data from the InformNapalm intelligence community, Russia spends nearly $3.5 billion annually on information campaigns. Ukraine has plenty of qualified marketing professionals capable of shaping the Ukrainian narrative (successful campaigns by UNITED24, #ArmUkraineNow are examples), but there’s a lack of funding for such work. “If one gives the monetary equivalent of one F16 to some information center – that would make difference,” he says.