First venture fund in Armenia to provide up to $0,5mnl to start-up IT companies
The venture fund, which has been set up in Armenia, will provide $200-500 thousand to start-up companies, Director of the Enterprise Incubator Foundation (EIF) Bagrat Yengibaryan said.
Addressing a forum of leaders of ICT companies in Dilijan on April 14, Bagrat Yengibaryan presented the venture fund, which has been set up by the initiative of the Armenian government and will start operating at the end of the year, Mediamax reports. He said that the fund will operate by the principle of entrance of financed companies to the capital.
“Enterprise Incubator Foundation, SME Development National Center and Gyumri Economic Development Fund made attempts to finance the start-ups in Armenia,” said Bagrat Yengibaryan.
According to him, a so-called “brokers’ institute” will be set up to serve the fund, which will search for projects with bigger potential, as well as “a scholarship institute”, which will provide lower amounts to the authors of promising projects through contests of innovative ideas.
The private sector and the government of Armenia (from the means provided by the World Bank) will direct $3mln each to the establishment of the venture fund. According to Bagrat Yengibaryan, the fund is negotiating with Armenian and foreign companies to attract private investments.
“We must understand and be ready that 8 out of 10 financed projects won’t succeed and provide the expected income,” EIF Director said.
According to him, a foreign expert specialized in venture financing will be appointed the head of the fund, and the Board will be formed from competent businessmen of Armenian descent.