On the Situation of Venture Capital in the World and in Azerbaijan
The text highlights the growing importance of the knowledge economy and venture capital (VC) in driving global innovation, especially within the context of the Fourth Industrial Revolution. In 2024, global VC investments reached $368 billion, with the U.S. leading due to heavy investments in artificial intelligence. While Europe remains conservative, Asia-Pacific countries like China and India are strengthening their positions. In contrast, VC markets in the Caucasus and Central Asia are still developing, supported by government programs. Azerbaijan is emerging as a new player with increasing activity in industrial parks, tech incubators, and the formation of local VC funds like Caucasus Ventures and INMerge Ventures. Angel investor networks such as Technovate–SABAH and Divida Angel Club are also expanding. Legal and institutional developments, including a draft law on venture financing and support from IDDA, are improving the ecosystem. However, challenges remain, such as limited growth-stage funding and lack of international VC instruments. Despite this, Azerbaijan has strong potential to become a regional innovation hub. Continued state support, foreign investment, and ecosystem development will be key to achieving this transformation.
https://ereforms.gov.az/en/ekspert-yazilari/dunyada-ve-azerbaycanda-vencur-kapitalinin-veziyyeti-140
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