The Vice Presidential Office for Science and Technology pursues the strategic objectives of promoting the marketing of knowledge-based products and supporting the growing technological ecosystem.
The vice presidential office, as the government's arm in supporting the tech community, launched 82 projects nationwide in the last fiscal year (ended March 20, 2021), recording a 38% increase year-on-year, Dolat.ir reported.
A total of 891 tech schemes were also approved for field studies in the current fiscal year.
Aside from its own projects, the vice presidential office invested in 168 knowledge-based schemes worth 10 trillion rials ($42.9 million). The office paid 39% of the investment – 3.9 trillion rials ($16.73 million).
In addition, the office handed out 1.35 trillion rials ($5.79 million) to 138 projects that were started in 2019-20 and progressed by 62%.
It also supported tech centers and parks in providing workspace, amenities and mentorship, as well as legal and commercial assistance, which have led to positive results.
According to the report, the office has signed 54 contracts worth 990 billion rials ($4.28 million) with private investors to establish science and technology parks and startup accelerator companies spread over 500,000 square meters.
Seventy-nine agreements worth 1.6 trillion rials ($6.8 million) have been inked with academic centers and universities to allocate lands for the construction of tech centers.
Research centers and NGOs have also reached 13 agreements worth 100 billion rials ($429,000) with the vice presidential office for establishing innovation centers and tech labs.
In the last fiscal year, the office was involved in commercializing 531 tech goods worth 360 billion rials ($1.54 million), reducing tech export customs tariffs, holding over 1,500 meetings with knowledge-based firms and making 207 visits to small- and large-scale tech exhibitions.
Vice President for Science and Technology Sorena Sattari told the media that his office and its affiliates will continue to support talented tech enthusiasts and devise new solutions for removing obstacles.
“The technology ecosystem has the potential to slash Iran’s dependence on oil revenues and make domestic industries more self-sufficient, if it were to receive adequate financial and technical assistance,” he said.
$454m Aid Package Planned
To strengthen its financial core, the government-backed Iran National Innovation Fund plans to pay 100 trillion rials ($429.18 million) in loans to fledgling technology firms through banks in the current Iranian year (started March 21).
According to Ali Vahdat, the head of the fund, the amount of allocation has been increasing in recent years, rising from 30 trillion rials ($128.75 million) in 2019-20 to 50 trillion rials ($214.59 million) in 2020-21, the fund’s website reported.
This year’s allocation is 100% higher than the cumulative loans paid out last year.
Earlier in a meeting with Bank Saderat Iran’s CEO Hojjatollah Seydi, Vahdat gave an overview of the fund’s total capital resources for the current year.
“The government plans to inject 10 trillion rials [$42.91 million] into the fund's coffers in the coming months, as per the 2021-22 budget bill. An additional $200 million are supposed to be transferred to INIF from the National Development Fund, the sovereign wealth fund,” he said.
“The banking system will assist the institution by continuing to offer aid packages to budding tech firms before the two sources send funds to INIF.”
Four local banks, namely Bank Saderat Iran, Bank Tejarat, Bank Mellat and Bank Ayandeh, will provide the expected loan sum.
Vahdat noted that Bank Saderat's share would amount to 3 trillion rials ($12.87 million).
Seydi stated that his bank is ready to extend its share of the loan and hoped that the seed capital will help assist new entrepreneurs and tech companies.
“The bank plans to reduce the loan application process for Tehran-based applicants to seven days and other cities to 30 days if all necessary documents are submitted with their application,” he added.
To relieve the burden on businesses, Seydi noted that the financial aid would be paid without any interest.
Last Year’s Lending
Iran National Innovation Fund is the state’s arm for providing the growing technology ecosystem with financial aid.
In the last Iranian year (ended March 20, 2021), the fund lent 50 trillion rials ($227.27 million) to knowledge-based businesses.
Vahdat said depending on the scale and field of activity of startups, low-interest loans worth 500 billion rials ($2.27 million) were paid.
“These firms have matured to the point that they know how to invest their money in development projects,” he said.
“INIF also held weekend events, during which startups introduced their products and achievements to attract private investors. If they raise 20% of the money they need, the fund will pay the remaining 80%.”
According to Vahdat, the strategy would curb the state’s role in financing the startup ecosystem and help firms become independent of state support.
INIF has hosted 20 such events in the fiscal 2020-21, connecting 125 startups with 300 investors.
“To date, over 25 startups have raised 340 billion rials [$1.54 million] during these events,” he said.
“The fund is turning startup weekends into regular gatherings for tech firms seeking growth. A growing number of tech enthusiasts and talented students are attending these events.”
Pandemic-Hit Firms
Besides the seed monies lent by INIF, the fund has loaned 8 trillion rials ($34.33 million) to startups after the outbreak of the novel coronavirus in mid-February 2020 to cushion the impact of the pandemic on tech-based companies.
Siavash Malekifar, the fund’s deputy for development, said financial aid packages were prepared to help virus-hit businesses normalize their operations.
The arrival of Covid-19 in the region, according to the official, disrupted the daily operations of many knowledge-based businesses.
INIF vowed to make amends, allocating 500 billion rials ($2.14 million) in loans between January and March 2020.
“As the losses caused by the virus started increasing, the fund decided to buttress the tech firms and startups against the disease,” he said.
INIF called on tech teams to supply health-protective and medical devices to improve treatment facilities by allocating 3.5 trillion rials ($15 million) in financial aid.
“INIF resumed loan payments to the disrupted fledgling and growing businesses a few months later,” he said.
“The second round of loans, worth 5 billion rials [$24,400] for each company, went to small businesses with fewer employees and lower wages.”
According to Malekifar, loans totaling 4 trillion rials ($17.16 million) were given to 500 virus-affected tech units.
“Since its inception in 2011, INIF has assisted about 3,000 tech teams with $400 million in funding,” he said.
