Development of Venture financing
The new law on venture financing has entered into force in Kazakhstan after amendments were made. The amended law is set to improve the mechanism of financing in the industry. The law, which was signed by President Nazarbayev, encourages greater entrepreneurial activities. It allows private investors to actively fund projects at the early stages of its development. New contractual tools of corporate law as well as the usage of English law were also introduced in the system of venture financing. The National Agency for Technological Development served as one of the developers of the draft law. The developers paid great attention to the advanced international experience in the area.
OMIRZHAN TASHIMOV, DEPUTY CHAIR, NATIONAL AGENCY FOR TECHNOLOGICAL DEVELOPMENT:
- We focused our attention on the countries with well-developed innovative environment. During the research, we discovered that every state in the United States has its own laws and requirements. We studied these mechanisms. Singapore is one of the leading countries in terms of innovative development where various investment tools are applied. We also studied the experience of these countries. With due consideration to our mentality and the proximity of our neighboring countries, we paid attention to Russia and Belarus, where innovative development is also well under way.
According to the developers, the law secures the relations between corporate partners, including the terms of entering and exiting the business. Meanwhile, the law reduces the likelihood of corporate conflicts.