According to a conference in Bishkek, not a single venture fund is currently operating in Kyrgyzstan, although the corresponding law has already been adopted. Askar Sydykov, executive director of the International Business Council, noted that the adoption of the venture financing law has not led to the emergence of funds in practice.
Developing Alternative Sources of Financing for Startups
Sydykov emphasized the need to develop not only venture but also angel financing, as well as to expand access to bank lending. He stressed that angel financing can give startups the opportunity to raise funds without the need to provide collateral.
General Recommendations for Business
The head of the International Business Council called on entrepreneurs, including young people, to remove obstacles to doing business and expand access to financing. In this context, Kyrgyz Republic Law No. 126 "On Venture Financing" was previously signed, laying the legal foundation for working with startups, regulating the activities of venture funds and investors, and introducing the concepts of "startup" and "business angel."
Overall, developing the entrepreneurial environment requires attention to financing mechanisms beyond traditional bank lending.
