Armenia will have local platform for crowdinvesting: Interview with Yervand Sarkisyan

A crowdfunding platform will be soon created in Armenia, which will give residents of the country and people from abroad the opportunity to invest small amounts in local startups, contributing to their development, Yervand Sarkisyan, the co-founder and partner of the first Armenian venture fund Granatus Ventures and member of the board of the new platform, said in an interview with NEWS.am Tech.

Crowdinvesting: Investing small amounts

Crowdfunding, also called equity crowdfunding, is a type of equity financing that involves raising capital from online investors to fund a private business. In exchange for their finances, investors receive a stake in a startup. And in the future, if the startup is successful, these investors will receive a profit on the shares they own.

This financing mechanism, as explained by Yervand Sarkisyan, is generally similar to venture or angel investing. But if in the case of the latter, it is customary to invest from 5,000-10,000 dollars and more, then in the case of crowdinvesting it can be a small amount – from 50-100 dollars per person. Of course, every 50-100 dollars will not make a difference for a startup, but if there are enough people willing to invest small amounts, the result will be a solid amount that can really help the development and expansion of the project.

And for people interested in investing, crowdfunding is a great way to learn how to invest, by investing small amounts and starting to understand how things work.

Crowdinvesting in Armenia

The main feature of the new crowdfunding platform is that, unlike all known international platforms, it will work exclusively with Armenian startups. For many potential investors, this is a great motivation to invest their money in the development of a local startup. However, not only Armenian citizens but also foreigners will be able to invest in Armenian startups. The platform will also be registered in Armenia and will conduct activities licensed in Armenia.

Are Armenians ready to participate in crowdfunding?

Answering this question, Yervand Sarkisyan noted that, first of all, this opportunity will interest people working in the IT sector and those already having some knowledge about investing, even if they have no experience in this area. This opportunity will also certainly interest bank employees who also want to start investing, but who do not have sufficient funds to become angel or venture investors.

Over time, however, the culture in the country will begin to change, and Sarkisyan is confident that in the future, more and more people in Armenia will become interested in investing, which will benefit both them and the startups they invest in.

The Armenian crowdfunding platform, as noted by Yervand Sarkisyan, has already received a license from the Central Bank of Armenia, and it is expected that in the coming months it will begin operating and the first projects will appear on it that can be invested in.

Traditional and alternative ways of financing startups are one of the central topics discussed at the Sevan Startup Summit 2024, which is taking place from July 21 to 27 in a tent city on the shores of Lake Sevan. Yervand Sarkisyan and his colleagues are working on a booster program at the event and are also taking part in panel discussions on startup financing.

Sevan Startup Summit 2024 is one of the most important IT events of the year. Every year, this informal business forum attracts hundreds and thousands of startups from Armenia and a number of other countries, giving them the opportunity to present their ideas to potential investors and mentors, listen to speeches of famous guests, participate in panel discussions, seminars, campfire talks, entertainment events and much more.

NEWS.am Tech is the media partner of the event.