Armenia’s Biggest Resource & Ameria: From Start-Up To Millions
Friday, November 9th, 2012 | Posted by Contributor Share Print
Ameria’s founding members Noubar Afeyan and Ruben Vardanyan at Ameria in Armenia
BY ANUSH A. HOVSEPYAN
Is Armenia an attractive market for investors? What does Armenia have
to offer to its Diaspora-Armenians who have the money and the
willingness to run businesses in Armenia? Is it possible to make money
and make a difference in Armenia from a distance? How can we best use
Armenia’s biggest resource – its Diaspora – to advance Armenia to
another level?
Armenia’s premier advisory and financial services provider, Ameria
Group of Companies (AmeriaGroupInc.com), has the answers, serving that
very mission to bridge the Diaspora to Armenia’s promising business
and investment opportunities by providing full-fledged advisory and
financial services.
The founding members of Ameria Group are successful Diaspora Armenian
businessmen such as Noubar Afeyan and Ruben Vardanyan. In partnership
with professionals in Armenia, these entrepreneurial minds have
invested in Ameria in Armenia and now say it has been a profitable and
meaningful investment.
Prominent investment banker Ruben Vardanyan listed in Fortune
Magazine’s `25 Rising Stars’ as the next generation of global leaders,
is the chair of Ameria’s board. Venture capitalist and MIT Professor
Noubar Afeyan is Ameria’s founding board member. He believes the
Diaspora Armenians need an institutional approach towards doing
business in Armenia: `Today Armenia is emerging as an attractive place
to do business. We have to start thinking about institutional
relationships, not just individual relationships. Ameria Group is one
such company in Armenia with the means to encourage the exchange of
expertise and investments.’ Glendale City Council member Rafi
Manoukian is also now with Ameria Group as its COO. Ameria started out
with only five employees and a $100,000 investment.
Today, with a team of more than 500 professionals, $500 million in
assets and branches across the country, Ameria Group of Companies is
growing beyond the borders of Armenia. It has attracted multimillions
in foreign investments and helped many businesses successfully grow in
the emerging Armenian market.
Ameria stands behind the development of the world’s largest aerial
tramway to Tatev Monastery, the largest mergers and acquisition deals
in Armenia’s commercial real estate sector, specialized in hotel
acquisitions and sales, equity financing of more than $200 million and
more. Ameria group is renowned in the region for the Ameria Legal &
Management Advisory, Ameriabank and Ameria Asset Management. It is the
only financial institution in the South Caucasus region recognized as
a Global Growth Champion by the DAVOS World Economic Forum for its
exceptional growth and expertise. The Banker, published by the
Financial Times, names Ameria `the best bank in Armenia.’ What
direction will Ameria take next? Today, Ameria is a pan-Armenian
advisory group that reaches out to Armenians worldwide as a one-stop
resource for Diaspora investors who want to make money and make a
difference in Armenia. Since 2011, the Ameria Group of Companies has
established a presence in the United States through
Noubar Afeyan at the World Economic Forum
Ameria Group Inc. Ameria’s founding board member, CEO & founder of the
multi-million dollar company Flagship Ventures, Noubar Afeyan in this
interview addresses the ways Diaspora can be involved in Armenia’s
economy.
ANUSH HOVSEPYAN: You and other like-minded Armenian businessmen have
been making changes in Armenia through the development of the banking
and business sector. You compared Armenia to a startup. How can a
country be compared to a start-up?
NOUBAR AFEYAN: After the collapse of the Soviet Union, I think,
Armenia was forced to become a start-up economically. The country had
to think about trade-offs and priorities, identifying its core
competencies that would give the country a competitive advantage. A
group of entrepreneurs formed Armenia2020 project for Armenia’s
development to make systemic changes at the government level, private
sector and society at large. Then, in partnership with Armenia’s
government, we founded the National Competitiveness Foundation to
begin the process of creating joint projects. For that, we needed
business models that would allow local operations but with global
standards. Ameria is a direct result of all that analysis and is a
venture geared to move the country forward.
A.H.: Was the development of Armenia’s financial sector a part of
Armenia’s competitiveness plan?
N.A.: Definitely, but in order to reach that goal, we needed to adhere
to global standards beyond the local Armenian market. It was then that
Ameria was established with an aim to be a domestic venture with
world-class standards – a big attitude change. Ameria’s organizational
culture, commitment to excellence with continuous staff development
and company branding are all consistent with its `dare to dream big
and work hard to achieve the dream’ philosophy. Ameria has set a
benchmark of success and growth.
A.H.: What were your intentions when entering the Armenian market as a
Diaspora Armenian investor? Why did you take the risk?
N.A.: Many Diaspora Armenians invest in Armenia in the familiar
fields. For instance, if they have a construction business in America,
they put money in constructing buildings in Armenia. Why and how to
invest in Armenia depends on the business interests and the support
system available in the country. Ameria provides that support
platform. For me, Ameria is a way to participate in all key aspects of
the economy by providing capital, expertise and access to my network,
allowing me to have a larger reach, rather than narrowly investing in
tomato processing plants, for example. Focused on core competencies
in each sector, Ameria strategically allocates the capital to produce
the highest return for investors in an emerging market. The Diaspora
investors can have immediate participation in Armenia’s economy by
investing in Ameriabank’s term deposits. Ameria has a special Diaspora
Deposits program that allows for six months, one year, or even longer
terms deposits at high rates. My recommendation to potential investors
would be to start small and do it right the first time with the right
partners. Get your toe in the water and go from there.
A.H.: Why it is worth investing in Armenia?
N.A.: It’s one thing to say you should invest all your money in
Armenia, it’s another thing to say you should allocate a portion. As
you gain more confidence, you can decide to increase that portion.
Armenia is developing largely based on the power of the Diaspora
Armenians who utilize the business opportunities in Armenia’s emerging
market. Investments in Armenia can generate higher returns through
terms that don’t exist in the mature markets of the Western world. For
example, in Armenia the interest rate is 8-10% for a term deposit; in
the U.S. it is 1 or 1.5%. It’s really about getting in at the early
stages of economic development, which also involves higher risks. So,
it’s about creating a balance of risk and reward potential.
A.H.: What does Ameria mean to you as an investor?
N.A.: I’m a founding investor and a board member. I’ve been involved
in consulting and governing the organization. Coming from the U.S. and
the innovation sector, I bring a different point of view than the
other board members who have Russian marketing and banking
experiences.
When in Armenia, I know how important it is to be able to get the
banking support with the same international standards we’re used to in
the West. Ameriabank provides that. Not only does it add a business
value to the economy, but also a strategic one. Ameria is a one-stop
resource for entrepreneurs, providing full-fledged support and
advisory services in the legal, managerial and financial aspects of
their business. It is great to have a world-class company with local
know-how in Armenia’s emerging market.
During his 25-year career as an inventor, entrepreneur, CEO and
venture capitalist, Dr. Afeyan has co-founded and built 25 successful
life science and technology startups. Afeyan is a recipient of the
Technology Pioneer 2012 award from the World Economic Forum and the
prestigious Wall Street Journal Technology Innovation Award. Afeyan is
also the recipient of the Ellis Island Medal of Honor. Ameria Group,
Armenia’s premier advisory and financial services provider, is one of
Afeyan’s successful undertakings that also has an emotional value for
the entrepreneur. He believes Ameria is a much needed bridge
connecting the Diaspora to Armenia’s promising business opportunities.
In his words, Ameria is unique as it brings world-class expertise and
local know-how for all those who want to make a positive change in the
country through business ventures as opposed to pure charity.
Ameria Projects
Among the many awards and 200 projects implemented in the past decade
by Ameria, below are listed the ones that have contributed to
Armenia’s economic development:
Development of world’s longest aerial ropeway to Tatev Monastery
Business plan for the largest mining company in the region – Zangezour
Copper-Molybdenum
Investment projects of more than $500 million
Equity financing for Armenian businesses of more than $200 million.
Ameria Awards
The Best Trade Finance Bank 2012: Global Finance Award
The Best Bank in Armenia 2011: Euromoney 2011 Awards for Excellence
The Best Bank in Armenia 2010: The Banker, a magazine published by the
Financial Times
For Additional Information Call: 1(888) 802 5352 Or Visit Ameriagroupinc.com