Azerbaijan developing tools to boost early-stage investment — Exclusive

The Innovation and Digital Development Agency (IRIA) under Azerbaijan"s Ministry of Digital Development and Transport has begun drafting an initial regulatory framework to recognize convertible securities.

Rashad Khaligov, Deputy Chairman of IRIA"s Management Board, told Report that the next stage will involve working with relevant regulatory bodies to create sector-specific mechanisms for their implementation.

IRIA considers the development of instruments to encourage investment in early-stage projects a top priority.

"In particular, we are focusing on angel investments, which play an essential role in building a sustainable innovation ecosystem," Khaligov said.

"Current realities demand more flexible, risk-adapted mechanisms. In this regard, we are exploring the adoption of tools widely used in international venture practice, such as SAFE (Simple Agreement for Future Equity) and convertible securities."

He noted that IRIA is actively promoting initiatives aimed at accelerating the growth of innovative entrepreneurship and technology startups in Azerbaijan. One of its key areas of work is shaping a regulatory base for venture capital and crowdfunding.

Khaligov added that, through these initiatives, IRIA seeks to expand startups" access to financing while attracting new investors to the innovation ecosystem, ensuring strong protection of their rights and interests.

"At present, our proposals are under review and refinement, with active involvement of international partners, including the World Bank, with whom we maintain regular experience sharing and technical consultations," he concluded.