RESPONSIBLE ENTREPRENEURSHIP VISION DEVELOPMENT AND ETHICS

340 RESPONSIBLE ENTREPRENEURSHIP
Figure 2: Funding gap in high-tech startups
Source: WB Report on Enhancing Access to Finance for Technology Entrepreneurs, 2014
Access to risk capital by startups in Azerbaijan
Azerbaijan has launched some initiatives in establishing an ecosystem that supports technology
based startups. Some projects intended to stimulate innovative entrepreneurship have
been launched by both international organizations and the government agencies. One of such
initiatives was High-Tech Park of Azerbaijan, which was established in 2012 to serve as a
seedbed for new technology based startups. It currently serves as a business incubator and
provides legal and accounting support to startups.
Although emerging ecosystems like Azerbaijan are trying to establish an environment supportive
of new technology-based businesses, financial infrastructure for startups is still in its
early stages. Risk capital market, which was completely inexistent a few years ago is now
starting to emerge. However, it is worth to note that the risk capital is currently limited to
pre-seed and seed stage investment offered by accelerators.
Our analysis revealed that there are currently ten incubators in Azerbaijan – three of them
private, one established by the government, and three incubators opened by universities and
two incubators initiated by telecom companies – Azercell and Bakcell. It is encouraging to
see that in addition to government, academic institutions as well as private sector have also
been actively contributing to establishing an ecosystem that supports technology entrepreneurship.
Description of the incubators/accelerators initiated by government and private sector is
given below.
“High Tech Park Azerbaijan” (HTP) was launched in 2012 through the Decree of the
President of the Republic of Azerbaijan. Main goal of HTP is the development of a sustainable
and competitive environment for the high tech economy in Azerbaijan. Business Incubation
Center of HTP is a pilot startup incubator of High Tech Park. Center started operations
in February 2014 with induction of its first cohort of startup companies. Since its opening,