Deputy head of the National Investment Agency under the President, Zhalina Zheenaliev, stated that this document is aimed at supporting startups and innovative companies, as well as developing venture investments in the country.
According to him, there are between 300 to 500 startups in Kyrgyzstan that are experiencing a lack of funding, many of which have a social focus. In 2024, it is expected that the volume of venture financing will reach 1.5 billion soms. "We aim to support entrepreneurs through this draft law," emphasized Zheenaliev.
He also noted that currently there are no venture funds in the country; however, the adoption of the law will create conditions for their establishment and operation.
In response to deputies' questions about the presence of business angels in the country, Zheenaliev pointed out that there is one business angel in Kyrgyzstan who has supported the implementation of three significant projects.
The draft law defines venture financing as high-risk investments aimed at startups and innovative companies with high growth potential. The document details the key participants in the venture market, including business angels, venture investors, and managers, as well as venture funds and innovative companies.
Particular attention in the draft law is given to legal instruments for venture investors, including agreements on future shares in companies, convertible loans, and option contracts, which are actively used on the international stage for early-stage startup investments.
The document also regulates the procedure for the creation and operation of venture funds, including the possibility of their organization without the formation of a legal entity or in the form of a limited partnership. Requirements for venture managers are established, as well as obligations for external audits and regular reporting to investors.
In the first reading, the committee deputies unanimously approved the draft law.
