The first meeting of the Jurisprudential–Legal Council of the Iran Venture Capital Association (IVCA) was held with the participation of respected jurists representing Grand Ayatollahs, alongside prominent legal experts in the field of technology, as well as managers and researchers active in the financial and innovation ecosystem.
At the beginning of the meeting, the President of the Iran Venture Capital Association welcomed the members of the Council and emphasized the necessity of establishing this specialized body to foster synergy between Islamic jurisprudence, legal frameworks, and the evolving needs of the innovation and venture capital ecosystem. He expressed hope that the outcomes of these sessions would contribute to enhancing the quality, efficiency, and legitimacy of financial instruments used in the knowledge-based sector.
During the session, the Ja‘alah contract—one of the financing instruments utilized by Research and Technology Funds for providing facilities through the credit line of the Innovation and Prosperity Fund—was reviewed from both jurisprudential and legal perspectives. Members of the Council underscored the nature of Ja‘alah as a “payment in return for the actual performance of a specified task” and highlighted the importance of aligning practical implementation of contracts with the jurisprudential requirements of this contract type.
In this context, several existing operational challenges related to discrepancies between current practices and the authentic definition of Ja‘alah were discussed. The Council also emphasized the need for greater transparency regarding the subject matter of contracts, clear differentiation among contractual models, and the formulation of explicit guidelines for changing the subject or type of contracts during the financing process.
In conclusion, the Council agreed that redesigning and updating contractual frameworks of Research and Technology Funds, while simultaneously considering jurisprudential and legal considerations, can enhance the legitimacy, efficiency, and reliability of financing instruments for knowledge-based companies. The review of other contractual structures and innovation financing instruments has been placed on the Council’s future agenda.
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