Վենչուրային կապիտալը Հայաստանում / Venture Capital in Armenia

Abstract

The paper examines the indicators of venture funds available in the RA and assesses the attractiveness of the country in terms of attracting venture capital by utilizing the Venture Capital and Private Equity Country Attractiveness index. In addition, we draw comparisons with other countries in the region and analyze the dynamics. Furthermore, we conducted expert surveys with fund founders. The results of the research indicate that the overall environment in Armenia is favorable in terms of legislation and tax benefits. However, several areas require improvement, including law enforcement, the depth of the capital market, and human capital development. As a proposed solution, we recommend that policymakers shift their focus from direct participation in venture funds through equal investment to enhancing these indicators. This can be achieved by creating common infrastructures and fostering a more competitive environment for the sector. By doing so, market mechanisms will naturally lead to the establishment of the necessary volume and number of funds.