Discussions focused on the Innovation and Prosperity Fund’s new investment strategies, the development of financing instruments, strengthening the role of CVCs within Iran’s innovation ecosystem, and mechanisms to facilitate greater private-sector investment in knowledge-based and technology-driven companies.
Nouralizadeh: VC and CVC Participation Must Expand to Drive Ecosystem Growth
Addressing the meeting, Dr. Asghar Nouralizadeh emphasized the importance of fostering large-scale technology companies and future unicorns as a key prerequisite for the growth of the knowledge-based economy. He noted that scaling innovative businesses is essential to enhancing the country’s innovation capacity and economic competitiveness.
Highlighting the growth trajectory of startups, he stressed that emerging ventures require stronger connections with established corporations and major market players. In this context, venture capital firms and, in particular, corporate venture capital entities play a critical role in enabling growth and market expansion.
Nouralizadeh also identified the leveraging of Innovation and Prosperity Fund resources alongside private capital as an effective mechanism for increasing investment in the technology ecosystem. He noted that appropriately designed financial instruments can help mitigate investment risk and channel additional resources toward innovative and knowledge-based enterprises.
According to the Chairman of the Fund, expanding such mechanisms can also contribute to increasing the share of the knowledge-based economy in national GDP.
He further stated that one of the Fund’s strategic objectives is to strengthen the capabilities of VC and CVC organizations to expand investment activity. In this regard, the Fund is prepared to develop new financial instruments, support the establishment of specialized Research and Technology Funds aimed at addressing strategic national challenges, and collaborate in the development and standardization of corporate venture capital investment processes.
Nouralizadeh concluded by emphasizing that corporate venture capital institutions should play a significantly larger role in advancing the innovation ecosystem and promoting professional investment practices across the country.
Transitioning from Project-Based Investment to Portfolio-Based Models
Dr. Mojtaba Zare Mehrjerdi, Vice President for Investment at the Innovation and Prosperity Fund, outlined the Fund’s updated investment policies during the meeting.
He explained that the Fund’s objective is not to engage directly in investments, but rather to expand the scale of investment activity nationwide by strengthening the capacity of professional investment institutions.
Zare Mehrjerdi announced the development of what he described as a “third generation” of investment instruments within the Fund. Under this approach, the Fund will gradually shift away from project-based investments toward portfolio-based investment models.
Among the initiatives under consideration are seed funds, philanthropic investment funds, and specialized funds focused on emerging fields such as artificial intelligence. He noted that many of these instruments will be designed to support businesses during their earliest stages of development.
Additional areas identified for collaboration between the Fund and VC/CVC organizations include the establishment of publicly listed VC and private equity (PE) funds, acting as a guarantor institution for the issuance of Sukuk and technology development bonds, and providing re-guarantees for crowdfunding initiatives.
New Platform to Connect Investors and Investee Companies
Dr. Ali Shabiri, Director of Ecosystem Development at the Innovation and Prosperity Fund, introduced a redesigned framework aimed at improving connections between investors and startups.
Referring to the Fund’s previous “Peyvand” and “Startup Mondays” programs, which were designed to facilitate capital raising for startups, he explained that these initiatives will be merged into a new integrated platform supported by updated policies and operational mechanisms.
Under the new model, investors will be able to specify their available investment capital, preferred technology readiness levels, and sectors of interest through a dedicated digital platform. Startups and other investee companies, in turn, will register their funding requirements and areas of activity within the same system.
The platform is expected to enable more targeted and efficient matching between investors and investment opportunities.
Shabiri added that the initiative will also create a comprehensive database covering investors, available capital, and sectoral investment interests. Such data can provide policymakers and ecosystem stakeholders with a clearer understanding of investment capacity across different technology domains.
Zavar: Investment Tax Credit Policies Should Reflect the Realities of Scalable Businesses
In another segment of the meeting, the Secretary of the Iranian Association of Venture Capital Funds and Institutions welcomed the initiative and emphasized the importance of maintaining regular dialogue between the Chairman of the Innovation and Prosperity Fund and CVC leaders.He also acknowledged the Fund’s role in facilitating the establishment of bank-affiliated CVCs, describing this development as a positive step that could encourage greater participation by financial institutions in innovation-driven investment, fintech, and financial technologies.
One of the key issues raised concerned investment tax credits and the evaluation framework used to determine project eligibility.
Zavar noted that many CVCs face challenges in utilizing available tax-credit incentives because evaluation processes often place significant emphasis on technological complexity and research-and-development characteristics. While these factors are important, he argued that existing legislation and executive regulations should also support investments in scalable business models.
He called for closer engagement between the Innovation and Prosperity Fund and the Vice Presidency for Science, Technology and Knowledge-Based Economy to ensure that investment assessments consider not only technological sophistication and R&D activity, but also the economic potential and scalability of businesses.
According to Zavar, this issue is particularly relevant for CVCs operating in information technology, banking, and fintech sectors, where technology development often represents only one phase of growth. Achieving scale frequently depends on market expansion, user acquisition, and the ability to reach large customer bases.
Citing examples such as Buy Now, Pay Later (BNPL) services, AI-powered recommendation engines, credit assessment platforms, and credit-scoring solutions, he explained that a technology may already be fully developed, while transforming it into a business serving millions of users requires substantial investment in market development and digital marketing.
From this perspective, he proposed that tax-credit mechanisms should also accommodate investments that directly contribute to the scaling of technology-based products and services.
Proposal to Publish a List of Tax Credit-Eligible Projects
Another proposal discussed during the meeting focused on creating a more transparent process for identifying projects eligible for investment tax credits.Zavar suggested that the Innovation and Prosperity Fund and the Vice Presidency for Science, Technology and Knowledge-Based Economy jointly publish a more detailed and clearly defined list of eligible projects or investment categories.
Describing the current process, he noted that startups typically approach a CVC first, after which technical, financial, and investment assessments may take several months. Once a project receives preliminary approval, an additional review is conducted to determine tax-credit eligibility. If the project is ultimately deemed ineligible, the investor may decide not to proceed.
He observed that this sequence can result in several months of effort by both investors and entrepreneurs without producing a final investment outcome.
To address this challenge, he proposed the creation of a pre-evaluated pipeline of tax credit-eligible projects and investment opportunities. Such a mechanism would enable CVCs to review and advance opportunities through their investment committees with greater confidence and efficiency.
According to Zavar, this approach could substantially reduce transaction timelines and accelerate the flow of private capital into knowledge-based ventures.
Association Expresses Readiness to Support Standardization of Financing Instruments and Legal Frameworks
During the meeting, the Association’s Commission on Corporate Venture Capital Research and Technology Funds announced its readiness to collaborate on the review, design, and standardization of financing instruments used in the venture investment sector.The Commission noted that the expertise of CVC executives and practitioners could complement the efforts of the Innovation and Prosperity Fund in assessing existing instruments, identifying gaps, and developing new financing mechanisms.
Participants also proposed closer cooperation between the Association’s legal working group and the Innovation and Prosperity Fund on legal matters, investment agreements, and contractual structures related to financing and investment instruments.
Such collaboration could contribute to the standardization of investment contracts and legal procedures, reduce contractual uncertainties, and facilitate more effective interactions between investors and investee companies.
Proposal for Quarterly Meetings Between CVC CEOs and the Chairman of the Innovation and Prosperity Fund
The meeting concluded with a shared emphasis on maintaining direct dialogue between CVC executives and senior leadership of the Innovation and Prosperity Fund.
Participants proposed holding quarterly meetings between CVC CEOs and Dr. Nouralizadeh to provide a structured forum for discussing industry challenges, policy recommendations, and emerging opportunities, while also monitoring the implementation of joint initiatives and decisions.
Overall, the discussions highlighted that scaling venture investment in the country will require coordinated progress across multiple fronts. These include the development of financial, guarantee, and leverage mechanisms; improvements to investment tax-credit processes; standardization of contractual frameworks; faster decision-making procedures; and the creation of transparent infrastructure that efficiently connects investors with investment opportunities.
Continued collaboration among the Innovation and Prosperity Fund, the Vice Presidency for Science, Technology and Knowledge-Based Economy, corporate venture capital organizations, and other investment institutions can help mobilize greater private-sector participation in the knowledge-based economy and support the emergence of larger, more sophisticated investment activity within the national technology ecosystem.
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