YEREVAN, October 2. /ARKA/. Armenia’s government will acquire 9,000 shares of Granatus Ventures Fund I CJSC totaling $3.3 million.
It has become known from the draft decision posed at the government’s official website that private investments into the Fund’s capital will amount to $3 million.
The government’s participation in establishment of the venture fund (a fund supporting startup companies) comes as part of the World Bank’s E-Society and Innovation for Competitiveness Project.
Under the project signed on January 26, 2011, the government has got a $24-million loan for addressing constraints to competitive e-Society and enterprise innovation in Armenia by strengthening the underlying infrastructure and creating favorable environment.
The loan has been extended for 25 years with a 10-year grace at six-month LIBOR in dollars + floating margin. The fund will be run by a governor, in accordance with the law. The registration procedure of the Granatus Ventures began in July 2013 in Armenia on the initiative of Pierre Hennes, a Singaporean entrepreneur of Armenian descent.
Manuk Yerghnyan, head of the Economy and Values Research Center, is a partner to the fund in Yerevan, and Yervand Sargsyan, former financial director of Soros Fund Management, is the fund’s partner in London.
Granatus Ventures will be established as an independent legal entity. It will be participating in startup IT companies on a 50-50 basis and will buy out its share as the company will progress.
Grant Thornton studies show that annual demand for investments in capital in Armenia amounts to $1.5-1.8 billion. Demand for investments in capital in Armenia is expected to amount to $7.5-9 billion in the coming five years. -0---