A New Legal Framework for Startup Investments Is Being Established in Azerbaijan
As digitalization, innovation, and technology continue to advance rapidly, it is essential for legislation to keep pace with these changes. This is important not only for regulating emerging risks in the market, but also for expanding the existing ecosystem and facilitating its integration into international markets.
According to Startup.az, these remarks were made by Farid Osmanov during a meeting of the Parliament’s Economic Policy, Industry and Entrepreneurship Committee held on June 17.
According to Osmanov, the Innovation and Digital Development Agency (IDDA), together with relevant institutions—particularly the Central Bank—has prepared a draft regulatory framework to support these objectives.
He explained that crowdfunding primarily serves to finance early-stage projects through small contributions from a large number of investors. Venture capital funds, on the other hand, are investment institutions and financial instruments designed to support the growth of startups with high development potential.
Osmanov noted that the proposed legislation will, for the first time in Azerbaijan, establish a legal framework for the creation, operation, and regulation of venture capital funds. This is expected to create the necessary conditions for the institutional development of this investment mechanism and contribute to the growth of the country's startup ecosystem.