About Us

Venture Capital (VC) refers to capital invested—alongside strategic and managerial support—into early-stage, high-potential, and fast-growing companies with strong economic prospects.
Venture capitalists typically:

Finance startups and emerging businesses

Acquire equity stakes (equity-based financing)

Assist in developing new products and services

Create value through active involvement

Accept higher risks in pursuit of greater returns

Invest with a long-term outlook

VC funds serve as financial intermediaries between institutional investors (such as pension funds, banks, insurance companies, etc.) and high-growth, innovation-driven companies. Typically, institutional investors act as Limited Partners (LPs), while the VC fund serves as the General Partner (GP), responsible for managing the capital and operations on behalf of the LPs.

Why Venture Capital Is Critical for Startups
Small and medium-sized enterprises (SMEs) have structural advantages over larger corporations in terms of flexibility, responsiveness to external changes, and internal communication efficiency. However, they often face challenges related to managerial expertise, technical capabilities, and, most critically, access to financial resources.

These companies frequently struggle to secure bank loans or other conventional forms of financing, primarily because traditional lenders evaluate opportunities based on business size and collateral. Banks prefer larger, established businesses due to their lower perceived risk and higher cost-efficiency in processing large loans versus small ones. For smaller or newer ventures, lack of a proven track record and market position makes them less attractive to banks, which must also bear the costs of credit assessment and monitoring.

VC as Strategic Investment Partner
Venture capitalists are experienced risk managers who invest in some of the most innovative and promising companies—often those whose ideas cannot be financed through traditional banking channels. Their support is both financial and operational, typically spanning a 5- to 8-year investment horizon. During this period, the VC becomes a partial owner of the startup, though the investment remains illiquid until the company either reaches maturity, is acquired, or goes public (IPO).

High-tech startups often require multiple funding rounds (typically every 1–2 years) based on updated valuations. Yet, until an exit occurs, assigning an exact value to the company remains challenging.

Beyond Capital: Strategic Support
VC funds support companies across the full innovation lifecycle—from initial business idea to mature, independent enterprise. Their value goes beyond capital infusion.
Most venture capitalists actively participate in company operations and usually secure a seat on the board of directors. In early-stage companies, daily meetings with management are common. As a result, VCs typically limit the number of investments they manage to ensure active and effective engagement.

Based on the Executive By-law of Article 100 of Iran’s Third Development Plan, the Ministry of Science, Research and Technology was mandated to support the establishment of Research and Technology Funds (R&T Funds) to promote investment in innovation-oriented and knowledge-based companies.
Further emphasis on the creation and development of these funds was made in the Executive By-law of Article 44 of the “Law on Removing Barriers to Competitive Production and Improving the Financial System of the Country.”

According to Article 5 of the approved charter based on this regulation, the scope of activities of these funds includes:

Providing financial services and facilities to individuals and legal entities in the form of grants, short- and long-term loans, interest and penalty subsidies, and guarantees for research, technology, innovation, and commercialization projects

Attracting and channeling financial resources from the government, banks, authorized financial institutions, and other funds to fulfill the fund’s mission

Making venture capital (VC) investments in research and technology projects

Participating and investing in the creation, development, management, and capacity building of R&T and knowledge-based companies

Guaranteeing payments and installment obligations related to research and technology contracts to accelerate project implementation; collateralizing assets to prevent execution delays

Collaborating with domestic and international organizations, and joining relevant specialized associations in line with the fund’s objectives

Acting as a financial agent or intermediary for public and private entities in the field of research and technology

Providing feasibility and business plan evaluation services, project valuation, and monitoring services

Contributing to the development of national policies, priorities, and regulations aligned with the goals of the funds, and promoting synergy among existing support mechanisms in the country

The mission of these funds largely aligns with that of venture capital firms, particularly in their support for early-stage innovation and high-risk R&D initiatives.
To regulate the licensing, guidance, and oversight of these funds, a dedicated working group has been formed—with the Chairman of the Board of the Iranian Venture Capital Association serving as an official member.

Under the Executive Bylaw of Article 100 of the Third National Development Plan, the Ministry of Science, Research and Technology was tasked with supporting the establishment of Research and Technology Funds. These funds were created to invest in projects and knowledge-based companies. Likewise, the Executive Bylaw of Article 44 of the “Law on Removal of Barriers to Competitive Production and Promotion of the National Financial System” also emphasizes the establishment and development of Research and Technology Funds. Pursuant to Article 5 of the Statute adopted under that bylaw, the Funds’ fields of activity are:

• Provision of financial services and facilities to natural and legal persons in the form of subsidies, short-term and long-term loans, payment of all or part of interest and related penalties, and issuance of guarantees for the execution of research, technology, innovation, and commercialization projects.

• Mobilization or direction of financial resources from government budgets, banks and licensed credit institutions, and other funds in line with the Fund’s objectives, duties, and authorities.

• Venture capital (VC) investments in research and technology projects.

• Participation and investment in the establishment, development, management, and capacity-building of research, technology, and knowledge-based companies.

• Guaranteeing payment of obligations and installments under research and technology contracts to accelerate and facilitate project execution, including pledging and mortgaging assets to prevent interruptions.

• Collaboration with domestic and international institutions and bodies, and membership in related professional assemblies, in support of the Fund’s objectives.

• Acquisition and granting of agency and brokerage rights over financial resources of governmental and non-governmental entities in the research and technology domain.

• Provision of evaluation and feasibility-study services for business plans, and supervision and valuation of research and technology projects.

• Participation in drafting policies, priorities, and regulations related to the Funds’ objectives nationwide, and helping to coordinate and synergize existing support mechanisms.

The mission of these Funds can be considered analogous to that of venture capital firms. Moreover, to license, guide, and oversee their activities, a dedicated Working Group has been formed, of which the Chair of the Board of the Venture Capital Association is a member.