A joint "Fund of Funds" consisting of local and international venture capital funds is set to be established in Azerbaijan to bolster the nation's digital economy.
Operative Information Center-OMM reports that this strategic initiative is outlined in the "Action Plan for 2026–2028 on Accelerating Digital Development," which was approved today by President Ilham Aliyev. According to the document, the new entity will facilitate direct investment into the country's startup ecosystem, fostering innovation and technological entrepreneurship.
The implementation of the measures specified in the Action Plan will be financed through the state budget and other legally permitted sources. This move is part of a broader strategy by the Cabinet of Ministers and the Ministry of Digital Development and Transport to diversify the national economy and reduce dependence on traditional energy sectors by creating a competitive environment for high-tech industries.
The establishment of a Fund of Funds is a globally recognized mechanism used to attract institutional investors and mitigate risks associated with venture capital. By creating this platform, Azerbaijan aims to position itself as a regional hub for innovation in the South Caucasus, building upon previous successful initiatives in the Garabagh and East Zangezur economic regions, where smart city technologies are currently being integrated into the reconstruction process.
