Armenia improves its position in Global Startup Ecosystem Index 2025
22.05.2025,
10:09
Armenia climbs three spots to 54th globally, getting closer to the top 50 with a growth rate of over 20%, a rare feat among the countries ranked between 43 and 57.
YEREVAN, May 22. /ARKA/. Armenia climbs three spots to 54th globally, getting closer to the top 50 with a growth rate of over 20%, a rare feat among the countries ranked between 43 and 57.
Armenia ranks 1st in Central Asia, with a total score 2.8 more times than Kazakhstan, which ranks second regionally. ¬ Armenia ranks in the top 40 globally for the Software & Data industry.
Yerevan has been climbing since 2021. This year, it jumps 19 spots to 181st, thanks to a growth rate exceeding 40%. ¬ Yerevan leads the regional rankings, placing 1st in Central Asia. ¬ The city ranks 1st in Central Asia in Apps, a subindustry of Software & Data.
The report says: 'Despite being a landlocked country with restricted land access due to regional tensions, Armenia’s startup ecosystem continues to thrive. The Armenian government has long recognized that innovation is critical to the country’s future and has allocated resources to support the ecosystem’s growth. The tech sector in Armenia attracts new investments that fuel growth.
The country’s first unicorn, PicsArt, reached a US$ 1 billion valuation and acquired another Armenian startup, DeepCraft. Moreover, the Armenian startup ecosystem has seen growth in entrepreneurship and tech development, with companies like Shadowmatic and YerevaNN receiving praise for designing deep learning technologies. Due to its small market size and a population of just 3 million people, several highly successful startups—such as ServiceTitan—expand their headquarters to larger markets such as the US.
Yet, it is worth noting that these entrepreneurs are not disconnecting from their ecosystem.
A strong and successful Armenian diaspora supports the Armenian economy, and several highly successful American entrepreneurs of Armenian origin—like Reddit founder Alexis Ohanian—are working to boost the local startup ecosystem. Access in-depth analysis of 1,450+ cities and 110+ countries across dozens of tech industries and parameters with StartupBlink Pro.
Armenian startups are built to target the global market from inception due to the limited size of the domestic market. In addition to the talent available in the country, the Business Angel Network of Armenia plays an active role in the ecosystem by creating funding opportunities through events like the Angel Conference.
The country is also home to two other active angel networks—STAN and AICA—and six venture capital firms, including Granatus Ventures (the first Armenian VC, founded in 2013), SmartGate VC, Triple S Ventures, Formula VC, BigStory VC, and Via Fund.
These firms fuel the growth of Armenia's tech startups, many of which are designed to compete on a global scale from day one. Armenia is also working on strengthening its STEM education and talent pipeline. Initiatives like Tech4Armenia, a public-private partnership designed to expand students’ access to STEM education and support the growing tech industry, help enrich the local talent pool.
The Armenian government offers several programs to support its tech startups, including tax incentives and targeted investments in high-tech industries.
These investments are often channeled through the Ministry of High-Tech Industry, which plays an active role in nurturing innovation and supporting infrastructure for the digital economy. Moreover, to support foreign investment, Armenia has established Free Economic Zones and allows full foreign ownership, among other incentives. Over the past few years,
Armenia has made significant progress in reducing bureaucracy and corruption. While the Armenian startup ecosystem is still in its early stages, and the country has work to do to recover from its turbulent past, there is substantial untapped potential waiting to come to the surface.-0-
Armenia ranks 1st in Central Asia, with a total score 2.8 more times than Kazakhstan, which ranks second regionally. ¬ Armenia ranks in the top 40 globally for the Software & Data industry.
Yerevan has been climbing since 2021. This year, it jumps 19 spots to 181st, thanks to a growth rate exceeding 40%. ¬ Yerevan leads the regional rankings, placing 1st in Central Asia. ¬ The city ranks 1st in Central Asia in Apps, a subindustry of Software & Data.
The report says: 'Despite being a landlocked country with restricted land access due to regional tensions, Armenia’s startup ecosystem continues to thrive. The Armenian government has long recognized that innovation is critical to the country’s future and has allocated resources to support the ecosystem’s growth. The tech sector in Armenia attracts new investments that fuel growth.
The country’s first unicorn, PicsArt, reached a US$ 1 billion valuation and acquired another Armenian startup, DeepCraft. Moreover, the Armenian startup ecosystem has seen growth in entrepreneurship and tech development, with companies like Shadowmatic and YerevaNN receiving praise for designing deep learning technologies. Due to its small market size and a population of just 3 million people, several highly successful startups—such as ServiceTitan—expand their headquarters to larger markets such as the US.
Yet, it is worth noting that these entrepreneurs are not disconnecting from their ecosystem.
A strong and successful Armenian diaspora supports the Armenian economy, and several highly successful American entrepreneurs of Armenian origin—like Reddit founder Alexis Ohanian—are working to boost the local startup ecosystem. Access in-depth analysis of 1,450+ cities and 110+ countries across dozens of tech industries and parameters with StartupBlink Pro.
Armenian startups are built to target the global market from inception due to the limited size of the domestic market. In addition to the talent available in the country, the Business Angel Network of Armenia plays an active role in the ecosystem by creating funding opportunities through events like the Angel Conference.
The country is also home to two other active angel networks—STAN and AICA—and six venture capital firms, including Granatus Ventures (the first Armenian VC, founded in 2013), SmartGate VC, Triple S Ventures, Formula VC, BigStory VC, and Via Fund.
These firms fuel the growth of Armenia's tech startups, many of which are designed to compete on a global scale from day one. Armenia is also working on strengthening its STEM education and talent pipeline. Initiatives like Tech4Armenia, a public-private partnership designed to expand students’ access to STEM education and support the growing tech industry, help enrich the local talent pool.
The Armenian government offers several programs to support its tech startups, including tax incentives and targeted investments in high-tech industries.
These investments are often channeled through the Ministry of High-Tech Industry, which plays an active role in nurturing innovation and supporting infrastructure for the digital economy. Moreover, to support foreign investment, Armenia has established Free Economic Zones and allows full foreign ownership, among other incentives. Over the past few years,
Armenia has made significant progress in reducing bureaucracy and corruption. While the Armenian startup ecosystem is still in its early stages, and the country has work to do to recover from its turbulent past, there is substantial untapped potential waiting to come to the surface.-0-