Daria Yaniieva on Ukrainian Innovation Ecosystem, Venture Education, and Working with Startups

Daria manages a portfolio of over 20 companies with a total investment of $2.2 million and actively participates in the development and promotion of the Ukrainian innovations ecosystem, judging startup events, mentoring innovators, and speaking at Ukrainian and global tech events, like London Tech Week, Association of US Army expo, Eurosatory, Drone Defence Forum, IT Arena, etc.

In addition to Sigma Software Labs, Daria holds the position of an adviser at SID Venture Partners, a Ukrainian venture fund founded in 2021, which was recognized as “Investor of the Year 2023” by the Ukrainian Startup Fund and Lift 99. This year Daria took part in the launch of the Defence Builder Accelerator as a Board Member and actively mentors the accelerator’s startups together with 30 mentors from around the world.

For her non-stop activity in the development of the Ukrainian innovation ecosystem, Daria was included in the list of Top Women from VC and Startup Ecosystem in Ukraine by Vestbee. Just in November, Daria became a finalist of EIT Red Kalyna Award, aimed at recognizing and spotlighting Ukrainian women innovators and relevant organizations.

Daria Yaniieva receiving EIT Red Kalyna Award

We talked to Daria to learn more about the Ukrainian startup world, the role of an Investment Director, and her opinion about gender stereotypes.

Daria, you are an Investment Director at Sigma Software Labs, the corporate venture capital wing of IT company Sigma Software. What does an investment director do?

There is no standard job description for an Investment Director position I guess. The real list of responsibilities depends on the organization you work for. Since I manage a non-classic VC, but a corporate one, I’m engaged in broader activities than just the investment process. I combine a narrow investment focus with additional verification that the startups we invest in correspond to the strategic goals of the company standing behind our corporate venture fund, with strategic alignment in mind. Our goal within Sigma Software – which we implement through Labs – is Product & Service businesses synergy.

So I imagine it as a so-called ‘stage’ and ‘backstage’. At the stage, we make investments in startups – all actions here are related to this process from the first interview to the investment decision.

At the backstage, meanwhile, a lot is going on. To start the investment process, we need to connect with potential investees, create a pipeline of such companies, and for that, we need to define the investment goals of the company, its investment strategy, and a key investment focus. This is where new ecosystem projects are born, such as our startup contest UNICORN and ecosystem partnerships, – to create a like-minded community around that will help us meet business needs in a more efficient manner.

On top of the investment process, a significant part of my time is devoted to portfolio management. We search for and sometimes create new opportunities for our portfolio companies and supply an ongoing access to the underlying IT service company’s resources, networking, partnerships, etc. We don’t just make an investment agreement and wash our hands. The idea is to open doors into a big market for our ambitious portfolio companies.

Moreover, we may invest in our client’s business, which includes more mature startup stages, new market geography, and new legal specifics.

To sum up, I would say that an Investment Director has a large pool of versatile tasks and diverse activities, and it’s even more ramified, in the case of a corporate venture fund. The beauty of this position is that you are never bored.

Where to study to become an investment director? 

In Ukraine, we don’t have venture education at the moment. People and companies in our country often have a vague understanding of the investment world, while in the USA and Europe, people graduate from school with a knowledge of how to raise investments via SAFEs (simple agreements for future equity). We don’t have that, and this is a gap to work on.

But it’s a matter of time. Ecosystem in Ukraine is still forming.

Daria Yaniieva moderating the discussion panel at Forbes Tech 2024
Photo credit: Forbes Tech

I graduated from Kharkiv National University of Economics, Management Department, and got my PhD there. When I joined SSWL in 2021, I had another position, more focused on communications. Back then I had no experience in the venture industry. And that was my way to get this knowledge – I had to learn fast from practice. At the same time, I had to obtain theoretical knowledge from books, conferences, mentors, and communication with experts.

Reflecting on my journey, I have realized that the path to success is full of dedication and self-belief. This was my way, and I believe it taught me the value of practical experience. Mistakes are not setbacks; rather, they are opportunities for growth and learning.

Throughout this journey, I have also proven the importance of strong women supporting one another. I was fortunate to meet my mentor, Veronika Korzh, who played a key role in my development at that time. Veronika was one of the founders of Sigma Software Labs and was transitioning from her position when I joined the company. Today, she serves as the co-founder and CEO of GeekPay, as well as a partner at SID Venture Partners. Veronika entrusted me with responsibilities while also providing the freedom to explore and implement new ideas. This balance allowed me to learn rapidly and effectively, pushing both my personal and professional growth.

You lead quite an innovative organization that provides mentoring and support to startups. Can we call it a startup accelerator?

Well, what is a startup accelerator? It’s a quick program aimed at a specific result. So startups get a super intensive education and get accelerated after finishing it.

Sigma Software Labs is a corporate venture fund, which means a long-term game. If startups join accelerators for resources, mentorship, networking, and money, with a corporate venture fund they can have all options an even more, but without a termination date.

We can compare Sigma Software Labs with an accelerator because the real value of both models is the ecosystem that we build around us. But, standing along IT service company Sigma Software, which has been building its infrastructure for over 20 years, a newly-born startup, getting on board gets an “all-inclusive” – specialists, services, established processes, and most importantly reputation of a big brand.

What do you think about the Ukrainian startup ecosystem? What components does it lack? Do we really need to develop it? 

The Ukrainian startup ecosystem is going through a transformative period. Just seven years ago, the concept of an ecosystem was nonexistent; terms like “startup” and “venture fund” felt like they belonged to rocket science.

Now our ecosystem has already shown its potential, but still has huge ambitions to develop. If the Ukrainian startup ecosystem were a person, it would be a high school graduate stepping into the world of college – a new phase full of possibilities.

On the plus side of our developing ecosystem, Ukraine has a great tech foundation with over 180 higher education institutions and a well-established IT industry functioning as a global hub. Our experience of providing high-quality service and cooperation with international enterprises serves as a significant advantage to startup products created in Ukraine. Moreover, the rapid evolution of our economy in the years of independence opened up great entrepreneurial potential.

On the other hand, in recent years, we’ve been witnessing a very open dialog between the private sector and the government. Among all, it has amazing results, such as the launch of the Ukrainian Startup Fund, supporting local startups from a very early stage with no-equity grants and mentorship. Another achievement is Diia City, a special legal and tax regime that creates favorable conditions for the development of IT companies and limits red tape allowing entrepreneurs to focus on their business.

What the Ukrainian startup ecosystem still lacks is synergy. I believe, we could get more benefits from the high school educational base. I’m talking about incubation labs and think tanks in universities. While there have been efforts to create such initiatives, the full potential is not used. Educational institutions should be considered as key players in our innovation ecosystem.

As to funding, venture funds organically emerge in Ukraine and start investing in Ukrainian startups. They invest in pre-seed and seed stages, which is good. But then startups come to the Series A stage and this is a different funding landscape, we currently lack sufficient financing for this phase within the country.

What we need now is synergy and time. The ecosystem is developing at a frenetic pace and it’s a great moment to be in the middle of it.

What is it like to work with startups?

I enjoy working with startups, but I must admit, it’s not for everyone. When I first began my journey in this field, I was amazed by the rapid pace of events. In specific industries like healthcare or finance, you absorb with time a deep understanding of the domain. However, working at an investment fund means engaging with various business sectors. Even if some areas are outside your investment focus, you still find yourself in these environments and gain insights into future trends.

As an Investment Director, I have to balance between established companies’ processes and startup approaches. This requires me to navigate the quick changes, unpredictability, and sometimes chaotic processes of startups, while also managing the stable but often slow-moving nature of large tech. My role is to bridge the gap between these two worlds, bringing a bit of chaos to the established part and a touch of stability to the startups. This balance, I believe, helps to drive innovation forward.

Startups are all about the people who inspire and energize those around them. When you meet them, you realize that if they so deeply believe in their bravest ideas, anything is possible. The startup environment is dynamic and unpredictable, filled with passionate people who are excited about their ideas and willing to push boundaries, no matter the challenges.

In your work, you deal with many startup founders and investors. There is a belief that this field is predominantly male. Is that true? Have you ever felt that you are treated differently because you are a woman?

It’s true that most players in the tech and venture industries are men. However, we are witnessing a time of transformation. More and more women are choosing tech education, taking on leadership roles, and becoming startup founders. This shift is driven by the understanding that diversity leads to better outcomes. Statistics show that diverse teams generate higher revenue.

Being a woman in our field presents both challenges and opportunities. While stereotypes may suggest that tech is a male-dominated space, the choice is yours to make. You have the power to be part of the change in the industry. Your voice, vision, and ideas are valuable contributions to this world. No matter what others may think, follow your dreams with confidence!