She also clarified what conditions are necessary for the establishment of venture funds and what mechanisms for supporting startups based on higher educational institutions exist.
The response from the Deputy Director of the National Investment Agency, Jalyn Zheenaliev, turned out to be quite interesting: there is only one registered business angel in Kyrgyzstan, but it is expected that their number will increase after the adoption of the new bill.
This question arose during the discussion of the bill "On Amendments to Certain Legislative Acts of the Kyrgyz Republic on Venture Financing" in its first reading.
Additional information:
The government presented two bills to the Jogorku Kenesh on February 13 and 17:
1) "On Amendments to Certain Legislative Acts of the Kyrgyz Republic on Venture Financing";
2) "On Venture Financing".
The initiator of the development of both documents is the National Investment Agency. The first bill proposes amendments to the current legislation, including the Civil Code, the Law on Economic Partnerships and Societies, the Law on Investment Funds, the Law on Competition, and the Law on Innovative Activities.
The second bill represents a new regulatory act that introduces terminology related to venture investing. In particular, it defines the concept of "business angel" as an individual who finances startups and innovative companies in the early stages of their development, as well as provides their knowledge and experience to support their growth.
According to the glossary of the U.S. Securities and Exchange Commission, a business angel is a wealthy individual who invests their own funds directly in developing companies at early stages of financing. Most business angels are accredited investors and often have been entrepreneurs themselves. In the U.S., the main requirements for an accredited investor include:
• having an individual net worth of over $1 million (excluding primary residence);
• an income of over $200,000 per year (for individual investors) or more than $300,000 per year (for joint income with a spouse) for the last two years;
• possessing certain professional licenses.
