Start-up Georgia: Gov’t financially supports new businesses

National Bank of Georgia and other central banks from the Eurozone shared their experience using the portfolio management system. Photo by N.Alavidze/, 05 May 2016 - 12:17, Tbilisi,Georgia

The Government of Georgia is starting a new program to finance start-ups in the country as a way to foster entrepreneurial spirit, encourage the creation of new businesses and develop the economy.

At today’s Governmental meeting Georgia’s Prime Minister Giorgi Kvirikashvili said any citizen of Georgia could benefit from the new start-up financing program – the only criteria is that applicants must have an innovative and interesting business proposal.

The start-ups financing fund will initially distribute 11 million GEL (about $5 million/€4.33 million*) to new businesses in the first stage, while in the near future the amount of funds available will increase to 35 million GEL (about $15 million/€13.77 million*).

Today we approved the creation of a financial intuition that will finance start-ups in Georgia. After one month this fund will begin its activities at the Innovation and Technology Park,” Kvirikashvili said.

Once the fund was ready it would begin allocating money to new businesses. Kvirikashvili believed the program was very important for Georgia as it supported the economy and the people of Georgia in many ways.

New businesses, including innovative and technological businesses, will receive financing without any mortgaging. For the first time in Georgia developing the country’s innovative potential is a priority,” he said.
We know many countries where developed innovative direction was the turning point in economic development. Today we are making a step forward in this direction,” Kvirikashvili added.

To ensure the program was implemented as best as possible and new companies were given enough support, Georgia would gain valuable knowledge about international best practices from its partner countries.

At today’s Governmental meeting Georgia’s PM said any citizen of Georgia could benefit from the new start-up financing program. Photo by the PM's press office. 

Georgia’s state-owned shareholding company, the Partnership Fund, will coordinate the start-ups financing program, while international experts will share their best practices with Georgia.

One of the first international experts to help the Georgian Government in this way was Mark Iwanowski - an experienced veteran in the international technology sector.

Iwanowski is the CEO of MDI & Associates, a global consulting group focused on venture. He has a vast, impressive working history; he has been the executive manager of 500 world-leading companies including Oracle, Honeywell, Raytheon and SAIC.

Yesterday Iwanowski met Georgia’s Economy Minister Dimitry Kumsishvili and was told about Georgia’s new four-point reform agenda, which was developed by the Government to boost economic activities in the country.

Iwanowski said he will help the Government support new businesses that will function locally and operate in foreign markets too.

*Currencies are equivalent with today’s National Bank of Georgia exchange rate.