Daria Yaniieva: Corporate VC: driving Product and Service business synergy (UA) UA Online IT Outsourcing Forum 2024 Winter Website – www.liof.org/online Youtube – https://www.youtube.com/startuplviv FB – https://www.facebook.com/ukrof

1. CORPORATEVC:
driving Product & Service businesses synergy
UA Online IT Outsourcing Forum
February 24, 2024
DARIAYANIIEVA
Investment Director @ Sigma Software Labs

2. 2
of successful delivery worldwide
21YEARS
In IT & turn-key solutions
development
2 000+ EXPERTS
Outsourcing companies by IAOP
WORD’STOP100
Canada
Ukraine
Brazil
Poland
Hungary
Bulgaria
Czech Republic
Portugal
Argentina
USA
UK
Sweden
Singapore
Middle East
Germany
To solve clients’ needs in a
more efficient manner
25+ PRODUCTS

3. § TOP 100 Global IT Outsourcing
§ TOP 20 largest IT companies
in Ukraine
§ 21 years of experience in the
implementation of quality
technological solutions
§ 250+ B2B partnerships in 30+
locations around the world
INTERNAL COMPANY’S ECOSYSTEM
3
§ Educational wing
§ >1000 participants yearly
§ 60 programs & courses
§ 20 years of experience in
various fields and team of
expert practitioners
§ Investment wing & venture builder
§ Scaling portfolio via B2B network
§ Resources, mentorship,
infrastructure
§ $2.2M+ invested in 18 startups
§ Building ecosystem (events,
global partnerships, mentors,
VCs, consulting)
SIGMA SOFTWARE (SSW) SSW UNIVERSITY SSW LABS

4. JOINT VENTURE FUND
4
§ The first unique Ukrainian high-technology venture capital firm
established by IT experts for IT geeks, focusing on investments into
early-stage technology startups to fund the future.
§ 13 Ukrainian ITTech Executives as General Partners
§ 5 founding companies
§ Investment focus:
§ Early-stage rounds (av. ticket size $300,000)
§ Industry-agnostic
§ Ukrainian founders with global vision

5. VENTURETRACK RECORD
5
2019
§ $25,000-100,00 tickets
§ Corporate VC
§ Product and service
businesses synergy
2020
§ 13 portfolio companies
§ $1.4M+ invested
§ Core domains of Sigma Software:
FinTech, DeepTech,
AI, CyberSec, etc.
2021
§ $300,000 tickets av.
§ World-class Limited Partners,
synergy of tech entrepreneurs
§ 39 deals within joint story
§ 2 exits
§ $6.3M+ invested together
§ 15+ deals announced after Feb,24,2022
§ Blockchain, DeepTech, FinTech,
Quantum Computing, E-commerce, etc.
2023

6. CORPORATE VC
6
Corporate Venture Capital

7. GLOBALTRENDS IN CORPORATEVCs
7
Global CVC-backed funding
§ $13.3B
Early-stage deal share in 2023
§ 62%
Deals with CVCs participation
worth $42.4B in total in 2023
§ 2573

8. CORPORATE VC
8
§ Early-stage rounds
(USD 50-100k avg.ticket)
§ Industry-agnostic, but SSW core
business domain preferable
(excl. hardware)
STRATEGY
§ Global vision
§ Match with SSW scaling opportunities
(Partner & Clients network)
CRITERIA
Corporate Venture Capital

9. CORPORATE VC
9
§ Early-stage rounds
(USD 50-100k avg.ticket)
§ Industry-agnostic, but SSW core
business domain preferable
(excl. hardware)
STRATEGY
§ Global vision
§ Match with SSW scaling opportunities
(Partner & Clients network)
CRITERIA
Corporate Venture Capital
PRODUCT& SERVICE BUSINESSES SYNERGY

10. CORPORATEVC: PROCESS
10
PHASE #1
FORMING FUNNEL
§ External startups
§ Corporate innovations
PHASE #2
INVESTMENT
§ Match with SSW
§ Due diligence
PHASE #3
PORTFOLIO
MANAGEMENT
§ Startup requests
§ Scaling them globally
§ 18 companies
SUCCESS CASE
§ Exit
§ Strategic partnership, etc.
PHASE #4

11. WIN-WIN IS A MUST

12. WIN-WIN IS A MUST
3

13. MAKEYOUR INTERNAL RESOURCES
WORK FOR EVERYBODY

14. 14
GLOBAL EXPANSION

15. BENEFITS FROM BOTH SERVICE AND PRODUCTCOMPANY
15
§ Revenue share models
§ Increased company’s EBIT
100% EBITMARGIN
↑ OVERALL EBIT
§ Partner product we invest in
§ Partner product that we resell
§ Our own products
PROVEN DOMAIN
KNOWLEDGE
§ Diversified assets
§ Extra revenue streams
§ Extra motivation for colleagues
EQUITY
IN PRODUCTSTORIES
§ Synergy of products and services
§ Solving clients’ needs more
efficient
COMPLEX OFFERS
FOR CLIENTS

16. PRODUCTCASES
16
AI tool that brings data from multiple data sources into
one place in minutes
§ One of the most trusted and experienced data
science teams in the region
§ Backed by ex-CTO of Sigma Software
§ Leading LLM and Data Mesh research for processing
large datasets
§ Growing B2B revenue
§ Startup of the month by Vestbee
AI & analytics partner for tech companies
empowering 2x more data and AI experiments
with the same team and resources
§ YCombinator W21 alumni
§ Minimizing time-to-market up to x3
§ Attracted NEAR Foundation as a strategic
partner with investment to expand analytical
solutions in Web3
Web-based solution for civil aviation
management: optimizing resources and reducing
costs by collecting and analyzing data from all
processes.
§ Techstars alumni
§ Piloted successfully in Ukrainian airports
pre-2022
§ Actively implementing PoC in the USA, Chile,
Lithuania, and Georgia

17. BENEFITS FROM BOTH SERVICE AND PRODUCTCOMPANY
17
§ Revenue share models
§ Increased company’s EBIT
100% EBITMARGIN
↑ OVERALL EBIT
§ Partner product we invest in
§ Partner product that we resell
§ Our own products
PROVEN DOMAIN
KNOWLEDGE
§ Diversified assets
§ Extra revenue streams
§ Extra motivation for colleagues
EQUITY
IN PRODUCTSTORIES
§ Synergy of products and services
§ Solving clients’ needs more
efficient
COMPLEX OFFERS
FOR CLIENTS

18. 18
§ Found the clients’ gap in the industry with $500 billion annual ad spend
§ Venture lab model
§ Co-founding, co-investing, co-authoring
§ Packed as a product:
– same service team
– tech expertise & business minds
§ 2022 – acquired by HUMAN Security, Inc.

19. BENEFITS FROM BOTH SERVICE AND PRODUCTCOMPANY
19
§ Revenue share models
§ Increased company’s EBIT
100% EBITMARGIN
↑ OVERALL EBIT
§ Partner product we invest in
§ Partner product that we resell
§ Our own products
PROVEN DOMAIN
KNOWLEDGE
§ Diversified assets
§ Extra revenue streams
§ $2.2M invested
EQUITY
IN PRODUCTSTORIES
§ Synergy of products and services
§ Solving clients’ needs more
efficient
COMPLEX OFFERS
FOR CLIENTS

20. BENEFITS FROM BOTH SERVICE AND PRODUCTCOMPANY
20
§ Revenue share models
§ Increased company’s EBIT
↑ OVERALL
EBITMARGIN
§ Partner product we invest in
§ Partner product that we resell
§ Our own products
PROVEN DOMAIN
KNOWLEDGE
§ Diversified assets
§ Extra revenue streams
EQUITY
IN PRODUCTSTORIES
§ Synergy of products and services
§ Solving clients’ needs more
efficient
COMPLEX OFFERS
FOR CLIENTS

21. COMMUNITYIN UKRAINE
21
§ Promoting business development for SMB companies
§ Sharing product and service opportunities
§ 66 companies as members with 7800 employees in total
BUSINESS
§ Foster startup culture in service-oriented companies
§ Assistance in idea validation and project realization
§ Encourage innovation and entrepreneurial spirit
§ Drive growth and success in the IT industry
§ Experts from leading local companies
IDEA BOARD

22. 22
#1
TECH HUB POWERED
BY FREEDOM 🇺🇦
#4
In Eastern Europe by the number
of outsourced developers
#30
ecosystems globally by Startup
Ecosystem Rankings 2020
@ StartupBlink
Among EU countries for the
number of tech graduates
§ Among TOP-3 fastest growing ecosystem in
CEE region @ Dealroom.co 2017-2022
§ UA-founded companies with global outreach,
clients, and entities (US, EU, UK, etc.)
§ Cooperating with leading tech companies:
Apple, Google, Microsoft, Amazon,
Samsung, Rakuten, etc.
§ 181 universities with tech faculties &
23,000+ qualified IT graduates
§ 22 IT clusters & 7 business associations

23. THANKYOU
DARIAYANIIEVA
Investment Director @ Sigma Software Labs