Startup Georgia: More Start-Up Opportunities than Ever Before

The Georgian Government is continuing to promote and support startup projects and ideas. At the presentation of the ‘Startup Georgia’ project, Prime Minister of Georgia, Giorgi Kvirikashvili, stated that anyone who has an original and interesting idea, but no capital for its implementation, can be an eligible participant. Acceptance of applications to the program was launched on June 17 and will last until August 1.

Once the winners are identified by an international group of experts, “successful entrepreneurs will receive at least 10 percent of the whole cost of the project. The cost of the idea will be at least 40 percent of the whole project budget. In a joint startup company, beneficiaries will own at least 50 percent shares of their new business,” explained the representatives of the project.

In future, the beneficiary will then have the opportunity to purchase the Startup Georgia share in the business and own 100 percent shares, or find another investor.

Furthermore, the creators of the program noted that if a business proposal is specific to the high-technology field, and is regarded as unique, the beneficiary will be wholly financed by the Georgian Innovation and Technology Agency (GITA). In this situation the beneficiary will retain 95 percent shares of the new business. The Agency can allocate up to USD 46,000 (100,000 GEL) for such candidates.

The Georgian Minister of Economy and Sustainable Development, Dimitry Kumsishvili, said in his speech that in addition to financial support, beneficiaries will be able to use the whole package of opportunities offered by GITA and Technological Park (Tech Park). “The program will provide an opportunity to gain the right know-how to set up the business properly and to manage it. It will also provide the right legal, managerial and financial support. In future, the government program will also help to promote projects abroad, and will organize presentations to potential investors and banks,” said Kumsishvili.

Further, GITA and Startup Georgia will offer free trainings, coaching, mentoring and consulting for all beneficiaries. Representatives of the program hope that this will help to create an innovative environment and a platform for ideas and knowledge exchange.

At the outset, the Government will allocate USD 5 million (11 million GEL) to the program, but this will gradually be increased to USD 16 million (35 million GEL).

The creation of Startup Georgia is considered to be one of the most important parts of the State’s Four-Point Reform Agenda, “which will transform our country into a more positive place, create new opportunities, and develop business aspiration in our country,” said PM Kvirikashvili.

The Prime Minister pointed out that the most difficult part is taking the first step, but called for new entrepreneurs not to be afraid of their ideas or those steps that need to be taken to realize them. “It is important for us to give each person the chance to realize their goals, generate ideas and build business. Those with unique and creative business ideas should persevere,” he advised.

Startup Georgia is a daughter company of the State’s Partnership Fund. It is implemented with the support of the Ministry of Economy and Sustainable Development of Georgia and Georgia’s Innovation and Technology Agency.

Eka Karsaulidze