The deputy was also interested in the conditions for creating venture funds and the mechanisms for supporting startups that are formed based on higher educational institutions.
The response to her questions was provided by the Deputy Director of the National Investment Agency, Zhalyn Zheenaliev, who reported that there is only one registered business angel in the country; however, with the adoption of the new bill, their number may increase.
This issue became part of the discussion on the draft law "On Amendments to Certain Legislative Acts of the Kyrgyz Republic on Venture Financing" (first reading).
Note:
On February 13 and 17, the Cabinet presented two draft laws to the Jogorku Kenesh:
1) "On Amendments to Certain Legislative Acts of the Kyrgyz Republic on Venture Financing";
2) "On Venture Financing".
Both documents were developed by the National Investment Agency. The first draft law proposes amendments to existing legislative acts and regulations, including the Civil Code, the law on economic partnerships and companies, the law on investment funds, the law on competition, and the law on innovative activities.
The second draft law is a new regulatory legal act that contains terminology related to venture investing. In particular, the document introduces the definition of "business angel" — an individual who provides funding to startups and innovative companies in the early stages of their development, as well as their knowledge and skills to support these projects.
According to the definition provided in the glossary of the American Securities and Exchange Commission, a business angel is considered to be an individual with a high level of wealth who invests their own funds directly into developing companies, usually at the early stages of their financing. Most angel investors are accredited, and many of them have experience working as entrepreneurs. In the United States, the main criteria for being recognized as an "accredited investor" are:
• an individual net worth exceeding $1 million (excluding primary residence);
• income above $200,000 per year (individually) or more than $300,000 jointly with a spouse in the last two years;
• possession of certain professional licenses.
