BAKU, Azerbaijan, November 27. The
establishment of venture investment funds in Azerbaijan is being
thoroughly analyzed in line with international trends and the needs
of the local ecosystem, the Innovation and Digital Development
Agency (IDDA) under the Ministry of Digital Development and
Transport told Trend.
According to the agency, active expansion of international
cooperation and the creation of new investment funds in this field
are expected in the near future.
“Expanding infrastructure, financing channels, and market access
opportunities for startups remains one of our main priorities. At
the same time, during the INMerge Innovation Summit held this
September, a new venture financing mechanism called Tumar Ventures
was announced together with the White Hill Capital fund, and a
founding agreement was signed. The charter capital of Tumar
Ventures is $1 million and will initially be financed by IDDA. An
initial investment of $1 million is planned, and relevant
negotiations are underway,” the agency stated.
The agency also highlighted investments already made by venture
funds operating with its support. IDDA noted that its activities
are built on five pillars shaped by global best practices and the
needs of Azerbaijan’s innovation ecosystem.
“We can emphasize support for startup infrastructure, financing,
and access to markets, along with the development of human capital
and innovation culture within the ecosystem. Our vision for
ecosystem building is based on these five fundamental principles.
In terms of access to financing, the Caucasus Ventures fund,
established in 2022 with the support of our agency, has assisted
nearly 30 startups to date,” the agency said.
IDDA also outlined the incentive mechanisms and legal reforms
being implemented to attract foreign venture capital funds to
Azerbaijan. The agency emphasized that this work is progressing in
two main directions.
“First, improving legislation and forming a suitable legal
framework for venture financing. We are working closely with
relevant state institutions on legislative reforms. Over the past
three years, the agency has focused on updating regulatory acts and
creating a transparent and favorable environment for investors.
Second, organizing international conferences and events to build
global networks. In this regard, we actively host high-level
innovation summits and events with the participation of
representatives from both the public and private sectors. The
INMerge Innovation Summit held in Azerbaijan is one of the most
successful examples,” IDDA noted.
The agency also pointed to the capital placement model that
supports mutual investment.
“As a clear example, for every $1 invested in Azerbaijani-origin
innovative projects through Tumar Ventures, the Kazakhstan-based
WhiteHill Capital venture fund allocates $2. This is being
implemented within a joint investment promotion framework,” the
statement said.
According to the statement, the agency plans to continue its
activities in the coming years and is working on more open and
effective mechanisms to attract foreign investors.
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