YEREVAN. – A venture fund will be established in Armenia this year, and it will provide its first funding by the year’s end, Enterprise Incubator Foundation Executive Director Bagrat Yengibaryan told Armenian News-NEWS.am.
In his words, Armenia’s banks generally do not enter the high technology sector, whereas the technology companies do not have collateral for a loan. And in this case the Venture Fund is an alternative to financing by the banks.
The new fund will initially have a US$ 6-million capital, which will be equally allocated by the World Bank and Armenia’s state budget. The Fund is open for private investors, too.
In the preliminary phase, the Venture Fund will finance projects worth $200-500 thousand.
According to Bagrat Yengibaryan, the Fund will not finance extremely risky projects. That is, “ideas will not be funded.”
The Venture Fund will have an independent, professional administrator.
“The [Armenian] Government will not manage the Fund, but rather it will create a stimulus. At Venture, what’s important is professionalism,” Yengibaryan noted.