The Iranian government has introduced a new investment scheme to help startups working on emerging technologies, which will be spearheaded by the Vice Presidential Office for Science and Technology.
According to the vice presidential office’s website Isti.ir, the investment scheme will focus on tech teams specializing in artificial intelligence, blockchain, augmented reality, virtual reality, internet of things and smart cities, which are considered the world’s top trending technologies.
Mohammad Mohammadi, an official with the vice presidential office, said the program is to be implemented in five fields, including bootcamps, accelerating and academia-born ideas.
Mohammadi said the office will cover 50% of the costs of bootcamps while the private sector provides the rest.
Academic dissertations on targeted tech fields can apply for grants worth 100-500 million rials ($430-2,170).
He added that startups working on minimum viable products will be paid loans to the tune of 1.5 billion rials ($6,520) for acceleration costs.
MVP is a version of a product with just enough features to satisfy early customers and provide feedback for future product development.
“In case a startup manages to pass the acceleration stage and build up a fledgling business, they will be exempted from repaying 50% of the loan,” he added.
Besides, the vice presidential office and its affiliated entity Iran National Innovation Fund are to initially make a pre-vetted investment in startups up to four times higher than their initial capital.
Mohammadi noted that established tech firms willing to forge ties with universities, academia and startup growth centers will be offered financial aid to the tune of 3 billion rials ($13,000).
He added that the vice presidential office has launched a website, Innoway.ir, for identifying and introducing achievements of talented tech teams working in high-tech fields.
The website will also showcase services and achievements of startups active in the field.
Mohammadi said tech teams submitting their work to the website will receive 30% discounted services and up to 200 million rials ($869) in registration bonus.
The official also said the investment program envisages identifying and supporting firms working on emerging technologies, which are expected to help boost the startup ecosystem’s share in Iran’s economy.
Tech authorities believe that new technologies can help transform Iran’s conventional, oil-based economy into a dynamic and knowledge-based economic system, by curbing the country’s reliance on exports of raw materials.
To this end, the government has opened up its coffers to fledgling startups and knowledge-based firms since President Hassan Rouhani began his first tenure in 2013.
Grants and Loans
Besides the vice presidential office’s direct financial aid to startups, local banks have also extended their resources to the emerging sector.
According to the Central Bank of Iran, tech-based firms received 36.6 trillion rials ($159.1 million) in the form of low-interest loans during the first quarter of the current fiscal year (March 20-June 20).
The loans have been offered to 484 tech units and knowledge-based companies, averaging 76 billion rials ($330,000) for each applicant.
The figures illustrate the fact that the Iranian government is going the extra mile to support the tech ecosystem, because of which the amount of financial aid offered to knowledge-based companies and startups has seen a significant %95.5 rise compared to the year-ago period.
The state’s support has also been extended to fledgling tech businesses affected by the novel coronavirus that spread across the country in mid-February.
In early August, Iran’s Ministry of Communications and Information Technologies reported that Iran has extended stimulus worth 1.24 trillion rials ($5.39 million) to virus-hit tech units.
Based on the report, around 72% of Iranian startups and tech businesses have been severely impacted by market stagnancy caused by the spread of Covid-19.
Officials believe that the pandemic cannot be controlled without utilizing the potentials of the tech ecosystem. The country’s knowledge-based economy, which has currently grown significantly, is being helped by young entrepreneurs and tech teams to withstand the negative effects of the disease.
The technology ecosystem is extending reach to new fields, including agriculture, aviation, automotive, entertainment, culture and media, and strengthening the backbone of Iran’s economic sectors.
