Azerbaijan Names Purpose, Detailing Activity Of Country's Identification Fund (Exclusive)
Date
3/21/2024 1:09:01 AM
(MENAFN- Trend News Agency) BAKU, Azerbaijan, March 21. The main purpose of
the identification fund is to minimize the risks associated with
the investment, the Head of the Innovation Ecosystem Department of
IRIA under the Ministry of Digital Development and transport of
Azerbaijan Yevgeniya Bikmurzina, told Trend .
"The main purpose of the Identification Fund is to improve the
investment climate in Azerbaijan. In other words, our objective is
to assist individual investors and business angels with their
investments. The primary goal is to reduce the risks associated
with investment, particularly in the startup sector, which has a 90
percent failure rate. The government is taking extreme steps to
mitigate and share the risks encountered by private investors,
allowing companies in the early stages of development to obtain
more funding to develop their ideas. On the other side, investors
must be confident that their initial investment will be sustained
by their partners. Thus, Identity Fund serves as a mediator, giving
assistance to both businesses and investors in the early stages of
investment. This promotes innovation and creates a favorable
environment for investment in the country," she noted.
Bikmurzina emphasized that İRİA is currently trying to find
business angels (private venture capital investors) for this
fund.
"At the present, we are looking for a group of business angels
willing to invest more than $500,000 within two years. The Agency
for Innovation and Digital Development is willing to contribute the
same amount to a joint microfinance fund but will not own a stake
in the financed firms. This will spread the risk for business
angels while increasing the number of investments. At the same
time, half of the funding should go to Azerbaijani-founded
enterprises. An investment committee, made up of representatives
from our agency and other active business angels, will help make
decisions," she added.
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