Armenia takes investors by storm, inhaling up to 90% of venture capital money in the South Caucasus region - Innotechnics report

YEREVAN, December 4. /ARKA/. Armenia took investors by storm, inhaling as much as 90% of the venture money that found its way into the region, Innotechnics said in a report titled "Venture Eurasia, 1H 2023 Roundup". 

Innotechnics believes it is stakeholder numbers that decided investors. The region’s least populated country (just 2.9 million people) is home to this territory’s most numerous VC funds and angel investors with deep enough pockets to make a difference (at least 13 and 30+, respectively).

Armenia is also the region’s top startup breeder; Innotechnics identified just shy of 270 innovative companies there. The Business Software, EdTech, FinTech and HealthCare segments grew exceptionally lovable among investors of all stripes in 1H 2023.

Kazakhstan and Armenia keep their strong lead in startup ecosystem development, accounting for 70% of all transactions in the region.

Uzbekistan follows with a noticeable (but hardly comparable) 16% of all deals; UzVCA, Aloqa Ventures, Semurg VC and Uzcard VC customarily drive the process there. Kazakhstan, Uzbekistan and Armenia all posted a substantial GDP increment in 1Q 2023 (up 4.9%, 5.6%, and a hefty 12.1%, respectively), adding to their venture progress

The progress of ecosystems in these countries has been fueled by growing activity from regional venture capitalists and angel investors (BigStory VC, BANA Angels, Big Sky Capital, Triple S VC and others).

Innotechnics estimates that Almost 90% of all the venture investment in the region came to Armenia in 1H 2023. Armenia’s startup ecosystem may be similar to a construction site quite a lot of builders feel responsible for, not to mention the large BANA Angels network that seeks ways of backing tech newbies and sharing knowledge and experience with them. The Armenian angel investors have also formed what they call The Syndicate to facilitate access to the country’s best startups by international angel investors.

"Kazakhstan and Uzbekistan trailed a bit behind Armenia in the number of deals - but not much: 30% and 25% of all the deals in the region, respectively. The average investment per deal, however, was perceptibly lower there: $0.7m in Kazakhstan and $0.2m in Uzbekistan, a fraction of what we saw in Armenia ($3m, ex Gecko Robotics deal)." the report said. --0--