Channeling Diasporan Entrepreneurship into Armenia
By Houry Mayissian // October 18, 2013
A recent World Bank report entitled, `Fostering Entrepreneurship in
Armenia,’ rated Armenia as having the highest level of entrepreneurial
activity among the countries of the South Caucasus. This was due to a
strong math and science foundation, according to the report, which
also found that compared to their neighbors in the Caucasus, Armenian
entrepreneurs were found to have an unusually high level of education.
The World Bank report
It is this small but vibrant pool of entrepreneurs in the IT sector
that Armenia’s first professionally managed venture capital fund will
be supporting. Partner and Co-founder Pierre Hennes, who I recently
met during the launch event of the Armenian National Committee of
Australia’s Professionals Network, is confident of the potential of
Armenia’s tech entrepreneurs.
Launched earlier this month, Granatus Ventures is a US$6 million fund
that will invest in IT start-ups based either in Armenia or abroad,
but with some part of their core activities operating in Armenia. Not
restricting funding to Armenia-based ventures will attract the
involvement of successful diasporan entrepreneurs who are interested
in placing resources in Armenia. It will also ensure that Armenian
start-ups have global reach through this network of diasporan
entrepreneurs. Further tapping into the diaspora’s potential, the fund
will be supported by a global network of experienced technology
entrepreneurs and professionals.
`I always say Armenians are the oldest and strongest social network,
even before Facebook. We have people all over the world, we are very
well connected, and that’s a strong asset that we should use,’ Hennes,
a Singapore-based venture capital and private equity specialist, told
me after the event. This is the philosophy that should drive the fund,
he believes. The other important principle is collaboration: building
a vibrant entrepreneurial community would only be possible through an
open and collaborative approach with all interested organizations, he
emphasized.
Granatus Ventures is part of a broader World Bank-funded program to
develop Armenia’s IT sector. Through the Armenian government, the
World Bank will provide US$3 million in funding, to be matched by
another US$3 million that will be raised by Hennes, Yerevan-based
Partner Manuk Hergnyan, and London-based partner Yervand Sarkisyan.
The fund has already generated significant interest among private
investors based in Armenia and Russia. The business plan, explained
Hennes, is to ensure a few early successes that can draw attention to
the potential of the country, thereby attracting further investment
into the sector.
In addition to funding start-ups, Granatus Ventures will have a
capability-building program. The Granatus Acceleration Program will be
running customized workshops and training programs for interested
parties on entrepreneurship and the various aspects of doing a
business.
It is a bold but, as it name suggests, promising venture. Granatus is
inspired by Punica Granatum, the Latin word for pomegranate, a
powerful Armenian symbol of prosperity, its seeds also signifying the
seeding companies the fund will be supporting.
Granatus Ventures is one example where resourceful diasporan and
repatriate professionals are making a difference in Armenia. From the
IT, education, agriculture, and media sectors to civil society, there
are several organizations, established or led by repatriates and
diasporans, that are creating new jobs and opportunities, bringing
know-how and a professional work ethic and promoting innovation.
These organizations, which often team up diasporan professionals with
their local counterparts, are also shaping a new form of
diaspora-Armenia engagement – one that goes beyond a donor-recipient
relationship, promotes more direct interaction and collaboration, as
well a better understanding of one another. Through Civilnet,
Armenians in the diaspora now have live access to the latest
developments in Armenia; One Armenia is offering an alternative model
of funding small-scale projects that make a big difference to
communities in Armenia; the Armenian Volunteer Corps has been helping
diasporan youth experience the homeland in a more meaningful and
personal light.
Although such organizations are making a considerable impact on
Armenia and Armenian-diasporan relations, they are still a handful in
number. In the more than two decades since Armenia’s independence, the
level of the diaspora’s involvement in a professional capacity in
Armenia remains far below its potential. Long gone should be the days
when we visit Armenia as tourists and feel satisfied by making a
donation here and there.
If we are willing to make the effort, today Armenia is more accessible
to diasporan professionals than it has ever been before though this
existing network of individuals and organizations. Throughout the
diaspora, and particularly in the United States, there are several
youth and student associations and professionals networks; banking on
their links in Armenia, these forums should more actively channel
diasporan professional involvement in Armenia. As important as this is
for Armenia’s development, it is essential for the diaspora’s
survival. Without tangible links to the homeland, there is only so
much we can do to maintain our Armenian identity in the diaspora in
the long term.
http://www.armenianweekly.com/2013/10/18/channeling-diasporan-entrepreneurship-into-armenia/