Following a series of systemic shocks, the Iranian Venture Capital (VC) landscape has entered a “warning state.” In an in-depth analytical report conducted in collaboration with Zoomit, the Iran Venture Capital Association (IRVC) has synthesized the perspectives of key industry leaders to evaluate the current challenges and propose a roadmap for survival and growth.
The report features insights from Sajjad Zavvar (IRVC Secretary), Hassan Zali (CEO of Soroush Sepehr Investment), and Mehdi Sadat Hayatshahi (CEO of Creative Industries Research and Technology Fund).
From Growth to Stagnation: The 2025 Shift
While 2024 was marked by relative prosperity, 2025 has faced structural “freezing.” Sajjad Zavvar highlights that internet disruptions and recurring crises have directly compromised the cash flow and survival of innovative startups.
Core Challenges Identified by Industry Experts
1. Infrastructure Vulnerability (The Internet Factor)
Hassan Zali emphasizes that internet stability is not a luxury but a vital engine for livelihoods. “Internet shutdowns mean operational paralysis,” Zali stated, noting that even investment due diligence and decision-making processes are disrupted. Mehdi Sadat Hayatshahi echoed this, stating that fund operations, including project evaluations and financial circulation, are effectively crippled without reliable online connectivity.
2. Forced Risk Aversion
The prevailing economic instability has pushed investors toward “forced risk aversion.” This shift has delayed VC deals—which are inherently time-consuming—resulting in a “slow death” for startups in urgent need of liquidity.
3. Survival vs. Growth
The focus of portfolio companies has shifted from scaling to mere survival. Factors such as the brain drain of specialists, rising operational costs, and energy imbalances have led to higher default rates, locking the financing flow across the entire ecosystem.
Critique of the Innovation & Prosperity Fund’s Support Package
The IRVC, represented by Mehdi Hayatshahi, raised technical concerns regarding the latest government support packages:
- Timing Mismatch: The current timeframe (March–April 2026) fails to cover prior damages.
- Bureaucratic Hurdles: Reliance on intermediary banks has complicated the relief process.
- The Guarantee “Time Bomb”: There is an urgent risk of guarantees being called, which could create a systemic crisis if not addressed immediately by the Vice Presidency for Investment.
The IRVC Roadmap for Crisis Management
The Association proposes five essential pillars to navigate the current crisis:
- Recognizing Internet as Critical Infrastructure.
- Developing Advanced Financial Tools (e.g., leveraging financial resources and leasing).
- Tax Incentives to encourage investment in distressed but viable tech firms.
- Expanding Co-investment Models to distribute risk across financial institutions.
- Direct Support for Investment Funds as a prerequisite for saving the startup ecosystem.
Conclusion
“Funds are the intermediaries of trust,” says Hayatshahi. “If they exit the cycle due to liquidity crises, rebuilding the ecosystem will take years.” Sajjad Zavvar concluded by stressing that excluding industry representatives from the policymaking process leads to a disconnect between regulations and field realities.
👉 [Read the Full Report Here] (Link)
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