YEREVAN, February 24. /ARKA/. The investment environment in Armenia continued to develop over the past year, despite global economic challenges. Samson Avetyan, CEO of the Armenian investment company Eqwefy, which was established in May 2024, spoke to ARKA news agency about the difficulties faced by startups and IT companies, as well as the potential impact of the artificial intelligence trend on the country’s economy.
ARKA: Mr. Avetyan, your company’s mission is to facilitate the implementation of innovative ideas from Armenian startups with growth potential, providing them with access to a wide range of resources. How was 2024 in terms of investments? Which organizations are investing in Armenia, and have we seen individual investors emerge?
S. Avetyan: A major success in 2024 was that ServiceTitan, one of the world leaders in cloud software development, went public. This company, which was valued at $1 billion before its IPO, was founded by two Armenians, Ara Makhdesyan and Vahe Kuzoyan. This is significant because it shows that large, specialized investors, including international ones, are investing in Armenian startups and technology companies. Such investments are not happening in other sectors from specialized foreign funds, which makes this a great success, both for ServiceTitan and for all of us. Overall, the investment environment in Armenia is progressing. Previously, this part of the financial system was less developed. Of course, there are challenges, but there is progress, and that is inspiring.
ARKA: You mentioned difficulties. Can you elaborate on what you mean?
S. Avetyan: The main challenge is that our economic system has remained traditional for a long time. Today, products are becoming more complex, and the market offers a wider range of financial instruments, such as investment, savings, and consumer products. The capital market is developing, the stock exchange is growing, bonds and shares are being issued, and people are starting to use them. This is crucial for the country’s development. The financial system plays a key role, as it redistributes resources across various sectors. The more developed and progressive the financial system, the more effectively it can channel resources into high-yield, profitable industries, which will ultimately drive significant progress for the country.
: Are Armenian companies and startups facing funding issues due to the widespread talk of a crisis and the “squeezing” of the sector?
S. Avetyan: We have a well-developed startup ecosystem with over five venture funds and three business angel networks, and this area is actively growing. However, the problem is that these investment structures are concentrated in a narrow technological sector of fast-growing startups. At the same time, a large share of IT companies in Armenia are not startups. The challenges of recent years have forced IT companies to rethink their strategies and shift from outsourcing to developing their own products and added value. This has changed the financing situation, as such projects require new financial instruments. Banks have traditionally not operated in this area, and they are still not very active, which makes it important to develop private investment mechanisms. At Eqwefy, we are working on this and striving to contribute to the growth of the ecosystem.
ARKA: How might the AI trend impact the Armenian market? After all, AI requires significant resources. Does Armenia have the capabilities for AI startups to emerge and grow here?
S. Avetyan: Any technology that a country can leverage will enhance its competitiveness. In this regard, AI is another tool for strengthening Armenia’s position. We need to develop technologically and become more competitive. There have already been some successes and promising prospects in this direction. Of course, there are challenges related to infrastructure and the availability of hardware resources, but these are technical issues that can be addressed. Overall, the trend is positive, and its development will be beneficial for Armenia.-0-
