Iran’s corporate venture capital (CVC) ecosystem is undergoing a strategic shift, moving from an exclusive focus on cutting-edge technologies toward addressing the country’s urgent and strategic needs—particularly in the pharmaceutical sector.
Amin Pirayesh, Vice Chairman of the Corporate Research and Technology Funds Commission, stated that investment priorities have been redefined in response to current economic conditions and international sanctions.
“In previous years, our focus was primarily on artificial intelligence and advanced pharmaceutical technologies. Today, however, national priorities require us to concentrate more on essential and strategic products such as insulin, which is critical for the country’s healthcare system,” he said.
Rethinking the Implementation of the Knowledge-Based Production Law
Pirayesh emphasized that while the “Knowledge-Based Production Leap Law” carries a progressive and innovation-oriented vision, there is a noticeable gap between the spirit of the law and its practical implementation.
According to him, the law was drafted under relatively stable economic conditions, whereas Iran is currently facing complex economic pressures and sanctions. As a result, greater flexibility is required in its execution to ensure that critical domestic technologies—especially in healthcare and pharmaceuticals—can effectively benefit from existing incentives and tax credits.
He noted that some locally developed technologies, including advanced pharmaceutical filtration systems used in plasma processing, have faced challenges in qualifying for tax incentives despite representing significant domestic technological achievements.
Latest Status of Domestic Insulin Production
Regarding the production of domestically manufactured insulin, Pirayesh confirmed that investment has been made by the Ariogen CVC Fund, and the production line is currently under development.
“We hope that with continued support from the Innovation and Prosperity Fund and the provision of the remaining liquidity, the production line will become operational on schedule,” he said.
He added that Iranian pharmaceutical experts have successfully developed cost-effective and indigenous solutions under sanctions, often implementing innovations not yet seen in foreign companies.
Evolution of Corporate Venture Capital in Iran
Pirayesh described Iran’s CVC sector as still in its growth phase. While venture capital activity began around 2012, corporate venture capital funds have only been operating seriously for about three years.
He highlighted a shift in approach among major holding companies, noting that they are no longer seeking maximum equity ownership but are instead focusing on value creation and long-term economic returns. Entrepreneurs have also increasingly recognized the benefits of “smart capital” over short-term financial facilities.
Aligning Investment Portfolios with National Needs
While research and development remain a key priority, Pirayesh stressed that investment portfolios must be aligned with the country’s real and immediate needs. This includes prioritizing widely used and essential medicines rather than focusing solely on highly specialized, frontier technologies.
He concluded by emphasizing the importance of involving private sector representatives in major economic decision-making processes and called for potential revisions to executive bylaws of the Knowledge-Based Production Law to better reflect economic realities.
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