Talks with potential start-ups investors underway
By Nigar Orujova
The Azerbaijan State Fund for Development of Information Technologies is negotiating with private companies and holdings for long-term investment in start-up projects.
The news was announced by Fund Executive Director Elchin Zeynalov at "Start-up Days" conference in Baku on November 7.
According to Zeynalov, some of these holding companies are already opening private funds, which will obtain the opportunity of being supported by the State Fund. These private funds are intended to support of start-up projects and innovative ideas.
"Financial support for start-up projects by private foundations will not possibly be as large as the State Fund's financing, but their support will be important in the development of innovative ideas. There will be several such private foundations that will have a positive impact on supporting private entrepreneurship in the country," he said.
The financing of the projects by the State Fund is expected to start in 2014, and about 5 million manats ($6.3 million) will be allocated to start-up projects in the coming year.
The first contest for start-ups in Azerbaijan is expected to be held in late November, early December. The contest aims to select the most effective and promising projects in the field of ICT, preferably projects that envision the creation of innovative products and "green" technologies.
Each Azerbaijani citizen can avail himself of the advantages of the ICT Fund's financing. The maximum grant available is up to 300,000 manats, provided for a period of 36 months. The amount of small grants is designated at 10,000 to 100,000 manats, while medium grants could be from 100,000 to 200,000 manats, and large ones could be from 200,000 to 300,000 manats.
Incubation center for start-ups in Baku
High Tech Park has started the implementation of a pilot project to establish a business incubation center, an initial step in the development of start-up projects, Head of Research and Development, Supporting Startups at High Tech Park Ulvi Aslanov said on November 7.
The park will be built over 50 hectares in the Pirallahi district of Baku. Work is currently underway to build the park, construct the necessary infrastructure, study pertinent international experience, and address other organizational issues.
"The incubation center will be located in the center of Baku, which is very important, as most universities are located in the capital. The place for the incubation center has already been allocated, and works on its creation are planned to be completed before the year-end. This is an innovation for Azerbaijan," Aslanov said.
Necessary conditions for each participant will be created for the development of start-up projects. The center will organize workshops to enhance the skills of the participants.
The center will create all the necessary conditions for teamwork on projects as well.
"When the projects reach the desired stage of development, the next step will be shifting them to the High Technology Park," he said.
The high-tech park is being created in the country under a decree of the Azerbaijani President, enacted on November 5, 2012. The new facility is an area with the necessary infrastructure, logistics and governing entities for conducting research in ICT, telecommunications and space use, energy efficiency, and the development of new and high technologies.
Once commissioned, the facility will expand the scope of information and communication technologies, and lay the ground for creating a modern complex to carry out research and IT development on the basis of current scientific and technological developments.
Residents and companies operating in the park will be exempt from the 18 percent VAT on imported infrastructural and technological goods and services.
The park participants will also be exempt from tax and customs duty for seven years.