RA HTI Minister Mkhitar Hayrapetyan Attended the Official Kick-Off Event of the Formula VC II Fund

On February 27, the Minister of High-Tech Industry of the Republic of Armenia, Mkhitar Hayrapetyan, attended the official kick-off event of the Formula VC II fund at the Alexander Hotel, delivering a welcoming speech. The event aimed to bring together leaders of Armenia’s technological community, investors, and startup founders to celebrate the launch of the new fund and discuss Armenia’s innovative future.

Mkhitar Hayrapetyan congratulated the organizers on the launch of the Formula VC II fund and emphasized its significance for the development of Armenia’s technological ecosystem. According to the Minister, this initiative is not only a great opportunity for Armenian startups but also a strong incentive for international investors to recognize the country’s vast potential for innovation and development.

Presenting data provided by the State Revenue Committee, Minister Hayrapetyan noted that in 2024, the turnover of the IT sector alone amounted to AMD 915 billion. When including certain areas of high-tech production, this figure exceeded AMD 1.15 trillion. This continuous growth demonstrates that Armenia has already established a competitive technological environment—one that is constantly evolving, attracting new ideas, talent, and investments.

"Investments from both the public and private sectors have yielded tangible successes. Today, the technological component of the economy accounts for approximately 7-8 percent of GDP, but we are confident that existing capabilities will allow us to double this figure in the coming years. To achieve this, the Government plans to significantly expand investment programs aimed at the long-term development of the technological sector," the Minister stated. He further emphasized the crucial role of venture platforms in this process, noting that they not only provide financial resources but also help startups enter international markets, scale rapidly, and become globally competitive. The Minister wished the fund success in its activities and reaffirmed the Armenian Government’s commitment to supporting the technological community, as it serves as a key driver of economic growth.

The new Formula VC II fund, launched by Formula VC, is one of Armenia’s leading venture funds. It plans to invest $30 million in 35–40 technology startups, fostering their rapid growth and, in turn, contributing to Armenia’s emergence as a technology hub. Formula VC II has

gathered investors and advisors from over 20 countries, creating an international platform for Armenian startups, regardless of their location.

The event also featured a panel discussion with startup founders, who shared their success stories and insights into the challenges they have faced.

Formula VC began its operations in 2021. Through investments from the Formula VC I fund, 22 Armenian-origin companies have already achieved global success in fields such as cybersecurity, artificial intelligence, quantum technologies, and beyond.