It is worth noting that this document has already received approval from the committee on constitutional legislation and state structure.
As of today, between 300 to 500 startups are registered in Kyrgyzstan, most of which are focused on solving social problems. In 2024, venture investments in the country have already amounted to 1.5 billion soms, and the new law aims to create legal conditions for this sector.
The draft law details the roles of key participants: business angels, venture investors, and managers. It introduces international financial instruments such as convertible loans and option agreements. It also outlines the functioning of venture funds, which can operate as limited partnerships or without creating a legal entity, provided there is an external audit.
During the discussion, committee members noted that venture investments are inherently associated with high risks. They emphasized the need to develop and implement mechanisms to minimize these risks in order to protect the interests of all participants and ensure transparency in reporting.
Deputy Dastan Bekeshev expressed concerns about the direct involvement of the state in venture investing, calling this approach an unjustified risk for state funds.
In response, the Deputy Head of the National Investment Agency, Zhalyn Zheenaliev, stated that by the time of the second reading, the agency is ready to discuss proposals to change the structure to a "fund of funds." This means that the state will not directly finance startups but will invest in professional venture funds.
