Azerbaijan’s first venture capital fund Caucasus Ventures established
The Digital Development Agency, PASHA Holding Group of Companies and individual investors have established a venture capital fund, Caucasus Ventures, which has great significance for the development of the innovation ecosystem.
A presentation ceremony, took place on this occasion, was attended by representatives of well-known companies from public and private sectors, investors, responsible executives from incubation and acceleration centers, foreign diplomats, heads of international organizations and media representatives.
The main purpose of the fund is to invest in post-seed growth and A-stage startups. The fund will create favourable conditions for the development of Azerbaijan’s innovation ecosystem, give an impetus to the formation of an investment culture in the country and attract the attention of foreign startups and investors to the local market. The venture fund will make a significant contribution to the development of startups by providing a financial flow in the innovation ecosystem.
It should be noted that the statutory capital of the fund is 11.3 million manats. Pasha Holding Group of Companies and individual entrepreneurs agreed to allocate 5 million manats and 1.3 million manats respectively to the fund. At the same time, the Innovation and Digital Development Agency supported the initiative of private partners and allocated an additional 5 million manats to Caucasus Ventures.
Caucasus Ventures will invest in startups from Azerbaijan, Georgia, Turkiye, Central Asia and Eastern Europe for five years.
Minister of Digital Development and Transport Rashad Nabiyev said on the launch of the fund: “Today we have laid the foundation for cooperation, designed for the future of our country’s innovation ecosystem. Caucasus Ventures will open up great opportunities for developing innovation infrastructure, optimizing the business environment, attracting foreign investors to the country and bringing local projects to foreign markets”.
Chief Executive Officer of PASHA Holding Group of Companies Jalal Gasimov shared his opinion: “I hope that the first venture capital fund we established today will be sustainable and the number of such funds in the country will increase many times in the future. In this regard, the success of the first venture capital fund is very important, and PASHA Holding, in its turn, will provide the necessary support for the success of the fund”.
Head of Caucasus Ventures Mammad Karim said: “The institutionalization of venture capital funding, which is one of the important tools of the startup ecosystem, and its consolidation by the current legislation shows that the investment environment in the country is ready for quite serious projects. I am very happy that we have announced these opportunities not only for the country’s startups, but also for regional startups”.
Farid Musayev, one of the private entrepreneurs who supported the establishment of the fund, said: “Investment opportunities in the innovation sector are a new concept for investors in the country. I think that the entry into the market of financial instruments, such as a venture capital fund, will further increase interest in this area. This, in turn, will lead to more funding opportunities for predominantly local startups”.
