BAKU, Azerbaijan, March 15. Additional investments totaling $10 million are planned for the next venture funds, the Head of the Innovation Ecosystem Department at the Innovation and Digital Development Agency (IDDA) under the Ministry of Digital Development and Transport of Azerbaijan Yevgeniya Bikmurzina told Trend.
"The launch of the first venture fund has considerably enhanced
Azerbaijan's investment position in the global and Turkic markets.
The venture fund invests in both local and regional startups,
enhancing Azerbaijan's place on the investment map.
Foreign startups are increasingly interested in Azerbaijan and
seeking funding from our venture fund. To ameliorate the situation,
we intend to invest an extra $10 million in the next venture funds.
This might be the formation of one or more funds, both local and
global or regional, in which we will serve as limited partners
[LPs].
These venture funds will also direct investments both into Azerbaijani startups and into global startups founded or co-founded by Azerbaijanis," she said.
Commenting on the issue, the Chairperson of the IDDA Board Inara Valiyeva noted that the main goal is to increase assets under management.
"The main goal is to increase assets under management, i.e., the funds managed by Azerbaijani investors or investors directing their investments into Azerbaijani startups. For example, we have the Caucasus Ventures fund sizing $6.6 million. Our goal is to attract at least $10 million this year.
We plan to achieve this goal by creating a second fund, where we will act as LP, investing as investors rather than general partners. We are also considering the possibility of investing in a regional or global fund that will open an office in Azerbaijan and conduct training for local investors.
We are ready to act as LP in such a regional fund, provided that at least $5 million of the total fund volume will be directed towards investments in Azerbaijani startups founded by local entrepreneurs residing both inside and outside the country," she added.
To note, the Innovation and Digital Development Agency was founded as a public legal organization under the Ministry of Digital Development and Transport by a decree issued by President of the Republic of Azerbaijan Ilham Aliyev on October 11, 2021.
IDDA is committed to organizing digital transformation initiatives across the country, creating a local innovation environment, and enhancing the overall ecosystem. The agency's primary focus areas include conducting nuclear science and technology tests, assisting individuals and entities in innovation-driven scientific research and startups, facilitating the adoption of modern technologies, ensuring access to educational and career opportunities in the ICT sector, and establishing and managing the digital government and society.