Discourse on “Venture funds and startups”

    #EnlightTalks series within the framework of “Enlight” three-month analytical internship program.

    On August 15, within the framework of the analytical practice, the discourse of “Enlight” analyst, economist by profession Hayk Kalantaryan on the topic “Venture funds and startups” took place.

    Hayk explained his choice of topic  with its relevance,  as well as  with the presence of participants  of different professions at the meeting. 

    At the beginning of the meeting the speaker introduced the issues that were  going to be discussed: the nature and the structure of venture funds, the venture funds operating  in the RA, the start-up formation stages, the accelerators and incubators, the way out scenarios , the investment  programs, the useful resources, the finances and the statistics.

    Hayk stressed  that even though venture funds had begun to be formed in the US since the second half of the 20th century, some  progress had been noticed in this sphere in Armenia since 2010, but so far there is no complete legislative regulation. The concept of venture fund comes from the English word “venture”, which means risky undertaking. Venture fund, which is based on private equity funds, invests the money raised in the implementation of ideas that promise to make a big profit in the future. These funds invest in high-risk startup companies or in the implementation of interesting ideas.

    Hayk added that there are three venture funds in Armenia: “Granatus Ventures”, “HIVE Ventures” and “StagegateVC”. Armenia has its share only in the authorized capital of “Granatus Ventures” out of  these companies. 

    Through examples of various operating startups Hayk presented to the participants their creation, activities and goals. Then, he started to speak about the formation and development stages of startups, differences between the accelerators and incubators. He also referred to different methods of refunding amounts, invested by venture funds, noting that the investment is considered successful if the funded company enters the stock market or is acquired by another large company (Merger and Acquisition). Then the speaker introduced the investment programs, their  formation and importance.

    During the meeting Hayk mentioned the internet websites and sources, the data of which  can be used in conducting  research and analysis in any field. 

    The speaker also highlighted the main reasons for the failure of startups, the difficulties and problems of financing startup venture funds.

    During the discourse, Hayk tried to find out   the participants’ awareness of the topic through  questions, he answered the questions that interested them and at the end, summarizing the meeting, he offered to read some books related to the field, which would help the  participants better realise the field, its issues, goals and advantages.

    You can get acquainted with Hayk Qalantanyan’s analytical articles by following this link.

    Prepared by Mariam Manukyan.

    Translator: Aram Sanamyan  © All rights are reserved.