Access to finance remains challenging for startups in Azerbaijan

Startups in Azerbaijan continue to face significant difficulties in accessing financial resources, said Farid Osmanov, Chairman of the Innovation and Digital Development Agency under the Ministry of Digital Development and Transport, told a press conference, Report informs.

Osmanov said incentive mechanisms need to be stronger, especially to improve access to funding for early-stage startups.

According to him, during the reporting period, three venture funds were established with the direct and indirect participation of the agency. Initial funding was allocated to a number of startups through these funds, as well as through international venture funds. However, he stressed that the volume of allocated funding remains insufficient and that efforts are ongoing to address this issue.

Osmanov added that cooperation with international venture funds is being expanded to support their entry into Azerbaijan. At the same time, work is underway to encourage the formation of more startups in the country, increase the number of new ideas, and enhance the attractiveness of startups created by local entrepreneurs.

He emphasized that the main challenge lies in the legislative framework. According to him, steps are being taken to ensure the adoption of relevant legislation in this area within a short period this year, which is expected to lead to a rapid increase in startup financing indicators thereafter.