A professional in the fields of innovation, venture investments, and product management discusses the future of the innovation sector.
Artem Vershinsky, founder at Arch Town Labs, is an experienced professional in innovation, venture investments, and product management, having worked for over 10 years in financial technologies and startup development. As a venture partner, mentor, and strategic consultant, he has helped companies scale their businesses, attract investments, and expand into international markets. Artem has been involved in numerous personal and partner projects related to innovations. He shared his insights on the trajectory of the innovation sector and his professional experience.
– You have extensive experience in innovation and have dedicated part of your career to international startups. What has been key to ensuring the rapid growth of startups?
Strategic planning and management play a crucial role in scaling an international startup, where gradual product development and improvement take center stage. However, even with a viable and interesting product, its future prospects are unlikely without financial backing and investments. Every startup needs to attract sufficient investment, as without it, growth and revenue generation become nearly impossible.
Thus, I would say that the key pillar of a developing and scaling startup product is innovation that generates profit. There is a common belief that investors tend to avoid innovation due to high risks. While such cases exist, the reason is often not the investors themselves—they are interested in increasing their capital and will not miss an opportunity to do so. With proper positioning and a well-developed product growth strategy, innovations will attract investors.
Another crucial factor is the project team itself. It must be capable of operating in today’s fast-changing environment, creating real value, and bringing something new to the market.
– Artem, you have worked with projects of various scales, launched and developed products, and attracted venture investments. In your opinion, how has the venture investment market changed in recent years?
Indeed, the venture investment market has undergone significant changes in recent years due to the dynamics of the global economy and the industry’s internal evolutionary processes. A few years ago, venture financing was heavily focused on strategies of rapid growth and expansion. This particularly applied to technology startups, where company valuation played a critical role. A high valuation often meant a greater likelihood of securing investments, but this did not always guarantee a return on investment and posed unprecedented risks.
However, given recent economic crises, this approach has been significantly reconsidered. Investors have become more selective, and the requirements for startups’ financial performance, supported by product development strategies and innovation, have expanded considerably. Financial stability, overall economic efficiency, and unit economics have come to the forefront.
As a result, the amount of venture capital in later-stage funding rounds has decreased, while investments have shifted toward early-stage innovative projects. Since innovations determine the prospects for overcoming economic turbulence, today, innovative projects are driving the market more than ever.
– You have several cases in your career that demonstrate the impact of innovation on successful business scaling. What principles have enabled companies to grow?
Innovation has always been a key driver of business scaling and development. Of course, there is no universal formula for innovation-driven growth. Each company is unique, with its own set of factors influencing its development. However, some practices have proven to be particularly effective in accelerating company growth.
One key set of principles I would highlight is related to agile methodologies. Flexible management is increasingly being used as the foundation of an innovation-driven business model, which is especially relevant in the fast-changing modern market. Agile approaches allow for the creation of products that seamlessly integrate into contemporary markets and consumer habits. This cannot be achieved without data analytics, strategic planning, and product management.
Alongside agile methodologies, Product-Led Growth (PLG) strategies play a significant role. These approaches complement each other and assume that users will discover and engage with a product on their own. This way, businesses attract loyal customers through a viable product that meets their needs.
And, of course, scaling a business is a slow process without investments and capital attraction. Thus, implementing effective capital-raising strategies is essential for rapid growth. These factors do not emerge overnight—they result from a startup’s productive work and serve as proof that the company is creating valuable innovations and is ready for rapid expansion.
– You are the founder of Arch Town Labs, an organization that drives innovation and plays a significant role in the industry. Can you tell us about your organization and the projects it is implementing?
At Arch Town Labs, we conduct research, testing, and promotion of innovative technologies. This is a non-commercial initiative aimed at researching innovations and analyzing their potential implementation in urban environments, businesses, and society.
The core of Arch Town Labs’ projects is the idea of startup development through collaboration with investors, technology leaders, and local markets. This approach helps identify the most promising solutions and later scale them into globally significant products.
– As someone involved in the World Innovation Ranking, can you share the key metrics for evaluating innovations?
In the World Innovation Ranking, the primary focus is on identifying and evaluating innovations that have the potential to impact industries and society. Innovations are assessed across multiple components, including:
- Novelty
- Scalability
- Industry impact
- Social significance
- Economic efficiency
- Funding and investment attractiveness
Each of these components contributes to an overall evaluation structure, creating a comprehensive picture of the innovation. This assessment helps both startups (their teams) and investors make informed, mutually beneficial decisions.
