First Venture Fund May Start Operating In Armenia This Year

FIRST VENTURE FUND MAY START OPERATING IN ARMENIA THIS YEAR

ARKA
July 21, 2009

YEREVAN, July 21. /ARKA/. The first venture fund may start operating in
Armenia before the end of this year, Hovhannes Avoyan, the president
of Armenian Union of Information Technologies Enterprises and the
general director of Sourcio Company, said on Friday.

In his words, negotiations with Russian funds over the matter are
under way now.

The United States and the World Bank have expressed interest in that
as well.

The World Bank is elaborating a relevant program now.

"I think it will be possible to speak about particular results in
three or four months", Avoyan said.

He said that the venture fund’s budget can be not so large to Armenia,
taking into account $20,000 to $200,000 financing of startup companies
implying low expenses and relatively low risks, but high prospects
for good results.

Local experts say at least $10-million venture capital is needed for
developing science intensive economy in Armenia.

Armenian Government’s concept of IT-sector development implies
attraction of $700 million as venture capital for ten years. However,
as experts say, local IT companies are not able to invest even $10
million in long-term projects.