Since traditional insurance companies earn credit by the number of their branches and agents across the country, some of them resisted cooperation with fast-growing Iranian InsurTech startups who need no brick and mortar workplace. However, some of those firms have finally accepted the reality of insurance sector developments and its coming changes.
“Iran Fara Bourse deputy admission and issuers announced that the very first Iranian VC Fund of Funds will be launched on the exchange soon. Apparently, the SEO has been ratified the sample prospectus and AoA of this suggested FoF and the vehicle is to be established as a limited partnership with the sole purpose of investing in other Iranian listed VC funds and not to have any managerial intentions there.”
The fever of establishing a knowledge enterprise or a tech startup is crawling amid Iranian entrepreneurs (Iranian Startups) and despite their chances for success or failure, it is now recognizing as a trend in the nation. Considering its “not that much” old history and traction the industry has in Iran, there are pitfalls which both idea owners and VC investors must look for. New terms and phrases are now coming to the Iranian Startups ecosystem and sometimes they are confusing enough for all participants to lead them either make a wrong path for their businesses or a regretful investment decision.
This article has been written originally in Farsi by Mrs Haleh Chitsazan (a freelancer Digital Executive Consultant)
Amid Iranian startups active in various sectors, Fin-Techs are somehow more important to look for since they handle the monetary transactions after all. The other factor made the industry more attractive in the eyes of entrepreneurs is the fact that backing by a bank, an insurance or a financial institution keep these businesses on the safe side (financial wise) which eventually lead into a better-focused team with no costs concerns. A simple payment application will make you enough money for your entrance to the mysterious “finance” world and this sector’s players are there to back you up whenever necessary.
Iran Alternative Investment Ecosystem is considered as a toddler contrary to what the advanced world has achieved so far. This is direr for Iranian Startups with a lifetime of less than a decade, however, some of them have reached acceptable levels considering all the limitations and impediments towards their way, yet there are issues that need most imminent attention of all participant or in near future we will face a load of failed startups and their frustrated founders whom once was young and restless!
In our last post, we dipped our toes into the Iran Alternative Investment ecosystem with a hint of listed VC funds, their laws, regulations and in general the imposed provisions on said investment funds. We are now to explore more about a very new scheme introduced, officially, just recently by Iran Fara Bourse. Although there were some old practices on this instrument in form of social and charity events, however, its conjugate with a capital market face is something that shall be considered as a toddler with lots of unknowns and question marks yet. Yes, we are talking about the “Equity Crowdfunding”!
Showing by name, Iran Alternative Investment is simply a getaway for conventional investment schemes. If listed equities, bonds (Sukuks) and bank deposits are considered as conventional in Iranian investment ecosystem, then ripping the way off for other instruments shall be named alternative.
Traditionally, international investors have always had their eye on Iranian greenfield investment schemes in form of private equity. After some time, the opportunities in the Iranian capital and debt markets caught their eyes