Azernews.Az

By Nigar Abbasova

Azerbaijan started to implement venture capital funds which are aimed at support of the IT- entrepreneurship development.

Addressing the conference held in ADA University Elmir Valizade, Deputy Minister of Communications and High Technologies said that all necessary conditions for the development of innovative entrepreneurship and start-ups had been created in the country. Problems such as bureaucracy, lack of access to funds occurring formerly were excluded, all these procedures had been simplified.

Particularly State Fund for the development of information technologies renders all necessary assistance for the development of start-ups. Resources of the Fund are directed to financing the projects and competition on the priority areas for the development of the information and communication technologies sector.

“All these are obvious examples of the creation of all necessary conditions for the development of IT entrepreneurship,” Valizade said.

Deputy Minister mentioned that for the past 10 years the country faced strong potential in human resources, laid down several industry-specific companies, which currently implement most of the projects realized in different spheres.

Valizade also mentioned that Azerbaijan is currently working on the preparation of legislative base for the formation of venture capital financing. The government has already created certain conditions and is currently developing new bills for further development in this sphere. “Initiatives taken by the ministry are currently under consideration in other governmental institutions,” the deputy minister said.

Previously, it was offered to use the resources of the Pension Fund and insurance market as the source of funding for start-up projects. The practice is widely used in Western countries, pension funds actively participate and bear responsibility for the investment process of innovative projects. International experience makes it obvious that venture capital financing is of great importance for the development of internet-business and start-ups. Experts say that the governmental support, strengthening of cooperation with international funds as well as aide of “business angels” (entrepreneurs who provide capital) are among the most important factors for the accomplishments in the sphere. The absence of risk insurance in the country is one of the main obstacles for the activities in this direction.

High Technologies Park which is the basic project of Azerbaijan’s high tech economic development also promotes creation of venture funds for the support of IT entrepreneurship.

“Formation of venture capital funds may become a connective link between local and foreign projects and trigger further development in this sphere,” Seymur Agayev, CEO of High Tech Park Azerbaijan told Trend.

The Azerbaijani government continuously works in order to foster the high tech economy in the country by providing a business friendly environment composed of brand-new facilities, economic incentives, and business services.

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