"Attract Financing Through Alternative Investment Instruments" - IC Armenia Event

On September 16, an event titled "Attract Financing Through Alternative Investment Instruments: What You Need to Know" took place at the "Congress Yerevan" hotel.

The event was attended by about 100 startups and other companies from the IT sector. During the event, the expert team of the EBRD Investment Council of Armenia presented legislative changes related to convertible debt, SAFE, and crowdfunding investments. These changes were developed through the joint work of the EBRD Investment Council of Armenia, the Ministry of Economy, and the Central Bank, with the support of the UK Government’s "Good Governance Fund.

The head of the EBRD Yerevan Resident Office, George Akhalkatsi, gave an opening speech, in which he noted the importance of the implemented reforms and the creation of new opportunities. "Startups are the backbone of innovation. Yet, access to finance remains one of their greatest challenges. The reforms related to Alternative Investment Tools—such as Convertible Notes, SAFE Agreements, and Crowdfunding Investments—directly address this gap by opening new pathways for early-stage financing. These three reforms reflect EBRD’s broader commitment to building a supportive investment environment: one that empowers entrepreneurs, reduces barriers to finance, and aligns Armenia with global best practices in startup investment."

Deputy Head of Mission of the British Embassy in Yerevan Paul Morris, said: "Armenia is building a more dynamic and resilient economy, and the United Kingdom is happy to support that transformation through our Good Governance Fund. We are helping to develop innovative financing options here like convertible notes and crowdfunding. This way, together with the Investment Council of Armenia, UK is not just diversifying investment opportunities for Armenia but also strengthening the foundations for sustainable growth that benefits both our nations."

The opening speeches were concluded by the head of the EBRD Investment Council of Armenia, Hovsep Patvakanyan, who emphasized: "We are pleased to announce that alternative investment tools—SAFE, convertible notes, and crowdfunding investments—are now available in Armenia. These new tools will allow more than 7,000 IT companies in Armenia and 800 new ones created annually to attract the necessary financing.

The expert team of the Investment Council of Armenia monitors the implemented reforms and conducts ongoing monitoring to understand their results and feedback. We are confident that the introduction of these tools will be an additional incentive for attracting a significant volume of investments into Armenian companies."

The opening speeches were followed by a presentation of the reforms, specifically convertible debt, SAFE agreements, crowdfunding investments, and donations to universities. After the presentation of the reforms, the participants asked questions to the experts.

Next, Samson Avetian, CEO of the Armenian crowdfunding platform eqwefy.com, presented the platform's operation, which allows for investments in promising startups starting from 5,000 or 10,000 drams.

Vladimir Shatverov, the General Director of the 2B Business Support Foundation, held a simulation game with those present to practically understand how alternative investment tools work and how shares are distributed among investors.

In the final part of the event, Aram Khachatryan, a lawyer at the "Enterprise Incubator Foundation", presented the new changes planned in the high-tech sector. After this, the participants discussed and tried to map the legal problems faced by IT companies with the experts of the Investment Council of Armenia.

The Investment Council of Armenia is implemented by the EBRD, with the support of the UK Government’s "Good Governance Fund.