The Deputy Head of the National Investment Agency under the President, Zhalyn Jeynaliev, emphasized that this document is aimed at developing the venture investment market and creating the necessary legal framework to support startups and innovative companies in the country.
Jeynaliev also noted that international experience was studied in the development of this bill. Currently, there are between 300 to 500 startups in the Kyrgyz Republic that need funding, many of which are focused on social projects. In 2024, the total volume of venture financing amounted to 1.5 billion soms.
According to the bill, venture financing is defined as a high-risk form of investment aimed at startups and innovative companies with significant growth potential.
The document contains a detailed description of the key participants in the venture market, including business angels, venture investors, managers, and funds, as well as innovative companies.
Furthermore, the bill includes a section dedicated to legal instruments for venture investors. It provides for mechanisms such as a future equity agreement, convertible loans, and option contracts, which are widely used in international markets to support early-stage startups.
The bill also regulates the organization and functioning of venture funds, allowing their establishment either without forming a legal entity or in the form of a limited partnership or other organizational-legal forms. Requirements are established for venture managers, as well as obligations for conducting external audits and regular reporting to investors.
Vice-Speaker Meder Aliyev called on his colleagues to support this bill, emphasizing that the state must create favorable conditions for attracting investments. “Investors contribute to the creation of new jobs, which is extremely important for the economy of our country,” he added.
Deputy Venera Salyamova also expressed support for the initiative, noting the need to introduce a preferential tax regime for foreign investors who support local startups.
The bill was approved by the committee deputies in the first reading.
