BAKU, Azerbaijan, March 18. The Innovation and Digital Development Agency (IRIA), operating under the Ministry of Digital Development and Transport (MDDT) informed last week about its intention to approve the establishment of a technopark residency and the inauguration of offices for 35 foreign companies in 2024, Trend reports.
Establishing an identification fund is another objective for 2024.
During the press conference focusing on the outcomes of the agency's endeavors in 2023 and its objectives for 2024, Yevgeniya Bikmurzina, the Head of the Innovation Ecosystem Department, underscored that in 2024, IRIA is committed to establishing a $10 million fund for Azerbaijani founders, finalizing 38 investment agreements with business angels and venture capital funds, and inaugurating another business angel club.
In an interview with Trend, Bikmurzina highlighted that the primary objective of the identification fund is to mitigate investment risks. Currently, IRIA is actively seeking out business angels (private venture capital investors) to support this fund.
"Currently, we're actively seeking a consortium of business angels interested in investing over $500,000 within two years. The Innovation and Digital Development Agency is prepared to match this amount in a collaborative microfund without claiming equity in the startups being invested in. This approach aims to spread risk for business angels and bolster the quantity of investments. Additionally, half of the investments are earmarked for companies founded by Azerbaijanis. Decision-making will be facilitated by an investment committee comprising members from our agency and select prominent business angels," she said.
Last week, it was announced that efforts have commenced to establish innovation centers in Baku, Sumgayit, Ganja, and Nakhchivan.
Furthermore, it has been revealed that as part of Azerbaijan's digital development concept, the following objectives have been outlined: the establishment of a digital government, guaranteeing the provision of digital services that are prompt, transparent, and of high quality; facilitating data-driven decision-making and enhancing public administration; enhancing digital literacy, knowledge, skills, and competencies, which includes streamlining business processes; ensuring the introduction of more adaptable public services through innovation; and fostering the growth of a digital society.
This year, the adoption of several key initiatives is anticipated, including a digital code, a digital development concept, an information management strategy, an artificial intelligence strategy, regulations about the electronic government information system, and legislation regarding digital documents.
In an interview with Trend, the director of the venture fund Mamed Kerim said that Caucasus Ventures has invested about 1.2 million dollars in startups so far.
"Presently, our fund's investment portfolio stands at approximately $1.2 million, allocated across 18 startups, with half originating from Azerbaijan. Notably, while not all of these enterprises are physically situated in Azerbaijan, their founders and evaluators hail from the country. Projections indicate that by year-end, our fund aims to augment its investment portfolio to encompass 24-25 projects, thereby reaffirming its strategy of robust investment in innovative endeavors," he said.
Visa and the Education Development Fund under the Ministry of Science and Education of Azerbaijan signed a memorandum of cooperation last week.
Within the framework of Visa Cashless Forum - Digital Azerbaijan, the Head of the Payment Systems Department of the Central Bank of Azerbaijan (CBA) Farid Osmanov noted that every fourth transaction in Azerbaijan today is carried out through Apple Pay and Google Pay.
He added that in 2023, the volume of transactions through internet banking in Azerbaijan increased by 12 percent compared to 2022, while the volume of transactions through mobile banking doubled.
During his speech, Osmanov emphasized that the formation of a competitive payment ecosystem is among the priority strategic objectives of CBA.
"Our key strategic directions in the payment sector also include increasing the accessibility of payment systems. This will expand financial accessibility from the position of payment capabilities, improve the security of payment transactions, and form an adequate regulatory framework," he emphasized.
During the same forum, Vice President and Regional Manager in Central Asia and Azerbaijan at Visa Cristina Doros emphasized that Azerbaijan is a strategic partner for Visa.
It also became known that, as of today, 14 banks in Azerbaijan support integration with Apple Pay and 15 banks support Google Pay.
Director of Visa Direct Services in Central Asia and Azerbaijan Sanjar Suleymanov during a speech at the forum that Azerbaijan stands out as one of the largest and most dynamically developing markets within Visa Direct.
In an interview with Trend, Epoint co-founder Hasan Hasanov emphasized that Epoint's e-commerce platform is actively exploring new markets.
"We have started the process of entering the Georgian market. The company is currently in the process of securing the required license from Georgia's Central Bank, which is a crucial step before beginning operations in this country," he stressed.