Azerbaijan issues over $5.8 mln to startup projects
By Nigar Orujova
The State Fund for Development of Information Technologies has allocated 4.6 million manats for financing IT-projects in Azerbaijan in 2014, the fund reported on January 19.
A part of these funds was given to 12 entrepreneurs, specializing in the field of information and communication technologies, in the form of soft loans.
“Another part of the state financing in the form of grants was allocated for implementation of 31 startup projects,” the fund said.
In late 2014, the state fund announced the second competition
within the framework of startup projects grant support. Some 65
start-up projects are represented in the second competition.
Some 5 million manats have been allocated to support projects in
2014 from the budget of the state fund.
Small, medium and large loans can be allocated to finance the
projects. The amount of small loans varies from 10,000 manats to
50,000 manats (for 3 years), medium - from 50,000 manats to 500,000
manats (up to 5 years), large - from 500,000 manats to 5 million
manats (up to 10 years).
The interest rate on the loans does not exceed 5 percent per annum.
The maximum grant amount can reach 300,000 manats (for 36
months). Small grants are provided in size from 10,000 manats to
100,000 manats, medium - from 100,000 to 200,000 manats, and large
- from 200,000 manats to 300,000 manats.
Working under Communication and High Technology Ministry, the fund
was established after a presidential decree on March 15, 2012.
The main objectives of the fund are implementation of the state policy on development and support of small enterprises in scientific and technical spheres, providing them with direct financial assistance and training, which in turn will contribute to the creation of new workplaces in the country.
The startup movement is now developing fast in Azerbaijan and the government sponsors the projects, especially in the sphere of high technology.
The volume of investments made in ICT sphere by enterprises and
the structural divisions of the Communications and High
Technologies Ministry stood at 57.2 million manats ($72.8 million)
in 2014.
A total of 142 million manats ($180.9 million) was invested in the
ICT sphere in 2014. The revenues volume from the ICT sector and
postal service of Azerbaijan increased by over 16 percent in
comparison with 2013, and stood at 1.7 billion manats ($2.16
billion) last year.