It should be noted that this document has already received support from the committee on constitutional legislation and issues of state structure.
As of today, between 300 to 500 startups are registered in Kyrgyzstan, most of which are focused on solving social problems. In the first half of 2024, the volume of venture financing in the country amounted to 1.5 billion soms, and the new law aims to create a legal framework for the further development of this sector.
The draft law clearly defines the roles of the main participants in the process: business angels, venture investors, and managers. The introduction of international instruments, such as convertible loans and option contracts, is also provided for. Additionally, rules for the operation of venture funds are established, which can function as limited partnerships or without the formation of a legal entity, provided there is an external audit.
During the discussion of the draft law, deputies noted that venture investments inherently represent high risks. They emphasized the need for careful development of risk minimization mechanisms to protect the interests of all participants and ensure transparency in reporting.
Deputy Dastan Bekeshev expressed the opinion against direct state participation in venture investing, calling it an unjustified risk for budgetary funds.
In response, the Deputy Chairman of the National Investment Agency, Jalyn Zheenaliev, stated that the agency is ready to consider proposals for reorganizing the structure into a "fund of funds" by the second reading. In this case, the state will not directly finance startups but will invest funds in professional venture funds.
