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Startup IT companies and individuals will be provided with capital to implement their ideas, Armenian Minister of Transport, Communication and Information Technologies Vahan Martirosyan said on Wednesday.

“IT Startups at an early stage that are focused on developing their ideas and trying to accomplish something, usually face certain difficulties, first of all – financial. As a result of discussions with the private sector, a decision was made to set up a small company to finance startup projects at their early stage. Over the course of the time, the company may grow into a fund,” Minister Martirosyan said. 

The minister pointed that they had studies the international experience, specifically the so-called “Business Angel” companies, designed to provide capital to IT startups and early-stage businesses seeking to grow.

“As of today, the initial capital of company is set at 200 thousand USD to be increased depending on the number of projects to be funded. The fund will be open for all companies and physical entities wishing to participate in it,” informed the minister.

Co-founder to the company, entrepreneur Ara Yaghjyan, present at the discussion, noted the initiative is the first step toward realizing a bigger idea with the second phase to establish a club of business angel, which is group of individuals or companies who provide capital for a business startup, usually in exchange for convertible debt or ownership equity. Today, me and a friend of mine Eduard Marutyan have joint the initiate and ready to invest 200 thousand USD. The capital will grow in the future to turn into a club of business angel or a private investment fund,’’ the investor said.

His partner Eduard Marutyan informed that the submission deadline of the first phase of applications is April 13 with up to 10 projects expected to be funded. 

He added that apart from financing the company will provide financial consultancy services. Minister Martirosyan pointed that the investors take the whole financial risks in exchange of becoming projects stakeholder.