Baku, Azerbaijan, Oct. 24
By Huseyn Valiyev – Trend:
Public sector can play an important role in the formation of a venture fund for supporting IT projects in Azerbaijan, head of Neuron Technologies LLC, Ismayil Alakbarov, told Trend.
He noted that venture funds are very important tools for technological development, a good example of which can be the experience of the US and Europe that have sources forming such funds.
“State, individuals, "business angels" and companies able to direct a part of their capital to venture financing can be sources of funding,” he noted.
Alakbarov thinks business culture for formation of venture funds in Azerbaijan has not yet been created.
“As for venture financing, it is not necessarily accompanied by risks. Various kinds of venture financing can be formed,” he noted.
Alakbarov said that the Azerbaijani market is different from the US and European markets. The public sector, which remains the main user of IT solutions and equipment, creates demand in the local market, according to him.
He noted that today private sector companies do not have extra capital to direct to venture financing, and it is unlikely that companies will take such a step now.
“Creation of a venture fund is necessary, but its formation will require time, liquidity and availability of projects. The state may play an important role in creation of a venture fund. Business can contribute to this as well. Companies can feel more confident if 80 percent of the funds for creating a venture fund are financed by the state,” he added.