Turnover of IT and high-tech production in Armenia exceeded 1 trillion drams in 2024: Minister on the importance of venture funds
YEREVAN, February 28. /ARKA/. This was stated by Armenia's Minister of High-Tech Industry, Mkhitar Hayrapetyan, during the launch ceremony of the Armenian venture fund Formula VC II, citing data from the State Revenue Committee.
The Great Potential of Armenia's IT Sector and Venture Funds
Hayrapetyan emphasized the importance of Formula VC II, which invests $30 million in 40 technology startups of Armenian origin worldwide, for the development of Armenia's technological ecosystem. According to the minister, the fund's launch represents not only a significant opportunity for Armenian startups but also an incentive for international investors to recognize Armenia's vast potential for innovation and development.
"The continuous growth of the IT sector demonstrates that Armenia has already established a competitive technological environment that is constantly evolving, attracting new ideas, talent, and investment. Public and private sector investments have brought tangible successes in this sector. Today, the technological component of the economy constitutes about 7-8% of GDP, but we are confident that the opportunities available to us will allow us to double this figure in the coming years," said Hayrapetyan.
He further explained that the government plans to significantly expand investment programs aimed at the long-term development of the technology sector. Venture platforms play a key role in this process, not only providing financial resources but also helping startups enter international markets, grow rapidly, and become competitive.
"The Armenian government supports the technological community as it is the engine of the economy," Hayrapetyan stated.
Venture Capital Expands Opportunities for Entrepreneurs
Armenian Deputy Prime Minister Mher Grigoryan also noted that venture capital expands opportunities for entrepreneurs, stimulates technological progress, and promotes sustainable economic growth in the country. He emphasized that the government will continue its efforts to improve the investment climate and develop an innovative ecosystem in Armenia.
Encouraging Creative Thinking
Vice Speaker of the National Assembly of Armenia and former Minister of High-Tech Industry, Mkhitar Hayrapetyan, highly praised the significance of the event in Armenia's technological sphere. He expressed satisfaction that Formula VC is entering its second phase, where tens of millions of dollars will be invested in the development of Armenia's startup ecosystem.
"It should also be noted that over the past five years, the share of high-tech companies in the gross domestic product has more than tripled. This is the result of the efforts of partners in the technology sector and the increased investments made by the government in education, science, and high technology," Arshakyan emphasized.
According to the Vice Speaker of the National Assembly, one of the crucial elements of venture capital is the encouragement of creative thinking and the involvement of entrepreneurs willing to take financial and other risks.
"This will also create significant opportunities for established companies to enter international markets," Arshakyan added.
He expressed confidence that the creation of a new venture fund that promotes institutional and creative thinking, and encourages the willingness to start new businesses and invest in the technology sector, will invigorate not only the high-tech industry but also innovations in other sectors.
About the FORMULA VC II Venture Fund
The new FORMULA VC II venture fund, with a volume of $30 million, is one of Armenia's leading venture funds. It plans to invest all funds into 40 technology startups of Armenian origin, encouraging their rapid growth. This, in turn, will contribute to the development of Armenia as a technology hub. The Formula VC II fund has united investors and advisors from over 20 countries, creating an international platform for Armenian startups, regardless of their location.
The Formula VC venture fund, with a volume of $7 million, began operations in 2021. Thanks to investments from Formula VC I, 22 Armenian-origin companies have already achieved success, including in the fields of cybersecurity, artificial intelligence, quantum technologies, and other areas.