According to him, ensuring access to financing is crucial for the successful development of startups. He suggested implementing preferential credit lines in banks to facilitate access to necessary funds.
The response to the initiative was given by Deputy Minister of Finance Nurbek Akzholov, who reported that there are already concrete plans to support small and medium-sized businesses. The World Bank and the Asian Infrastructure Investment Bank are ready to allocate $170 million for the development of this sector, including startups in Kyrgyzstan.
During the meeting, a draft law "On Amendments to Certain Legislative Acts of the Kyrgyz Republic on Venture Financing" was also discussed, which was at the stage of its first reading.
Reference:
According to the glossary of the U.S. Securities and Exchange Commission, a venture fund is a type of private fund managed by a venture firm. These funds typically invest in businesses in exchange for equity. Many of them specialize in specific industries or stages of company development (early, mature, or late). Venture investments are long-term in nature (usually funds are established for a period of at least 10 years) and remain "locked" until a liquidity event (such as a company sale or IPO).
The National Investment Agency of Kyrgyzstan proposes to adopt a law on venture financing, which will include the concept of "venture capital fund" — a form of collective financing created by attracting and accumulating funds and assets from qualified investors for subsequent investment in startups and innovative companies.
The Asian Infrastructure Investment Bank began its operations in 2016 in Beijing. By the end of 2020, the bank had 103 approved members, including Kyrgyzstan, representing about 79% of the world's population and 65% of the world's GDP.
