Read the story of Ukrainian e-resident Alex Dzyubenko, CEO and cofounder of Estonian-based business Volumo, the new generation electronic music store for pro DJs
Volumo is a new music platform founded and operated by a Ukrainian team. CEO Alex Dzyubenko brought the IT skills to the project, which launched as an online service last year, but he also credits cofounders Anton Severynenko and Denys Borysov, longtime DJs, with the idea.
"I was working as a project manager in a rather average Ukrainian IT company," Alex recalled. "Then, at the peak of the COVID-19 pandemic, I had a discussion with my old friend Anton, and he talked about creating a next-generation music store for professional DJs, as he is one himself," he said. "He brought some more friends on board and that's how we founded Volumo."
DJing, as Alex noted, is a highly competitive business. DJs need to differentiate themselves by offering the best music out there and at the same time don't always have a lot of time to search for new sounds to improve their sets. Volumo aims to solve this by offering DJs access to highly curated tracks that they can easily add to their setlists. The platform tries to offer the best music, a seamless user experience, and also allows artists to upload music and set their own prices. Volumo also engages record labels and distributors, offering a new dance music ecosystem.
"It's a specialized tool that's designed to appeal to a particular professional audience," said Alex.
To be even more competitive though, Volumo decided to incorporate in Estonia, rather than in Ukraine. And this was before the war in Ukraine intensified in February 2022. "If you want a business that is going to be active in European countries, it's probably too early to incorporate this business in Ukraine," said Alex. "We are not integrated into the European business space or at that level as a country," he said.
Some of the other cofounders of the company had already set up companies in Estonia, and so the choice of where to take Volumo was clear. Alex said that he perceives Estonia as being the equivalent of the US state of Delaware, a tax-friendly jurisdiction where most Silicon Valley startups incorporate, even though it's three time zones away from California.
"Estonia is kind of the Delaware of the European Union."
Becoming an Estonian e-resident, which allowed him as CEO to do business in Estonia as if he was a physical resident, was simple. He applied, picked up his starter kit at the Estonian embassy in Kyiv, and soon after Volumo was a fully fledged Estonian company.
Alex was even making plans to visit Estonia. But then the Russian Federation invaded Ukraine with the intent to occupy the entire country. Within days, its troops had advanced to the suburbs of the capital. Alex took refuge in the western part of the country, where he stayed until Russia withdrew from the north and northeast of the country. He's been back working for Volumo from Kyiv ever since.
"The superficial view might be that the whole of Ukraine is equally endangered, but actually it's not," said Alex. He noted that in the case of a drone or missile attack, he is given advance warning to take shelter, and that most of these weapons are shot down by missile defense.
"We have the best missile defense system in the world," he said.
When the war started though, Volumo went into crisis mode. The company prepared for the worst, for nuclear attacks and the like. They were asking themselves questions such as, "How do we still continue to function as a company if two of our cities get nuked?" He noted that some of the Volumo team is based outside of the country in cities like Paris and Barcelona, which meant that even if some team members were killed in an attack, Volumo would still function.
He noted that the Estonian state has such contingency plans as well, with a backup data embassy in Luxembourg. "So whatever happens, digital Estonia will keep working, and this makes Estonia very appealing, for us Ukrainians especially," said Alex. "I tell everyone about it when people ask about our continuity plans, not just the Ukrainian part of the plan, but the Estonian part."
Volumo has additional plans regarding Estonia. It would like to establish a physical presence in the country. "E-Residency was an easy way to start, but that's not just the end of our plans," he said.
"E-Residency is not where things end, it's where things start."
He added that it's too early to discuss where this desire to set up shop in Estonia might take the company.
In general, it is looking to expand awareness of the platform, while bringing in more music, as well as more music buyers. "We are getting better known in the DJ community," said Alex. Volumo has been well received at major music conferences such as the Berlin Dance Music Event, and the International Music Summit, which will be held in Ibiza next year. There is also the Amsterdam Dance Event, held in the Dutch capital every October.
"We have seen better recognition of Volumo," said Alex. "I'm even surprised now, because people have started to recognize us on sight."
And while Volumo is a proudly Estonian company, it is also powered by Ukrainian minds. According to Alex, the country has always been a knowledge hub. In the time of the tsars, intellectuals throughout the Russian Empire were educated in Kyiv and spread their ideas to the provinces. In the Soviet era, Ukraine was also where much of the space programs were based.
The country's current reputation as a reservoir of IT talent therefore stems from these experiences. "Historically, Ukraine has been a container of knowledge for all the territories around it," he said. "And if you look at the history of enlightenment in our region, it often comes down to just a few guys who went to Kyiv and took some courses at the local universities."
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