Baku, January 29, Tamilla Mammadova, AZERTAC
In recent years, Azerbaijan has increasingly appeared on the radar of the international tech and investment community. The countest is at a point where ambition, young teams, and a strategic position are launchning to shape a new entrepreneurial reality.
The Azerbaijan State News Agency (AZERTAC) presents an interview with Yagiz Karadeniz, an expert at DOMiNO Ventures, an investor, and mentor with international experience specializing in scaling tech startups in Türkiye, the Caucasus, Central Asia, and Europe, about the factors shaping the startup scene today, the barriers founders face, and what can transform local ideas into global companies.
-How do you assess the potential of the Azerbaijani market for venture capital investments, and which sectors of the countest do you believe offer the most promising opportunities for startup development?
-Azerbaijan presents a promising market for venture capital investments, particularly in B2B sectors that capitalize on its strong technical talent. The countest boasts a skilled workforce in software development, engineering, and product teams, creating it well-positioned to support scalable startups in areas like cybersecurity, AI, fintech, and logistics.
However, the ecosystem is still in its early stages, with a key challenge being the lack of success stories: startups that have scaled globally, attracted international venture capital, and achieved exits. These types of role models are essential for inspiring the next generation of entrepreneurs and drawing the attention of global investors to the region.
The most promising opportunities lie in sectors that require deep technical know-how, where Azerbaijani talent can create products that compete on a global scale. As the market matures and more success stories emerge, Azerbaijan has the potential to become a key player in the regional VC landscape, attracting both local and international investors.
-Have you encountered any unique characteristics or challenges when working with Azerbaijani entrepreneurs and investors? What steps can support accelerate the growth of the startup community in Azerbaijan?
-When working with Azerbaijani entrepreneurs and investors, one unique challenge is the focus on local markets. Many founders tfinish to build companies with a local ambition, which limits the scalability of their products. While it’s important to address local necessarys, the real opportunity lies in creating scalable solutions that can solve global problems. This mindset shift is crucial for the long-term success of the startup ecosystem in Azerbaijan.
To accelerate the growth of the startup community, founders should focus on global extension by designing products with international scalability in mind. This includes emphasizing product-market fit on a global scale, seeking international partnerships, and raising capital from global investors who can support expand the reach of their businesses. Additionally, creating a robust network of mentors, investors, and successful entrepreneurs to provide guidance and support can support inspire local founders to consider hugeger and bolder.
-Azerbaijan is located in a geopolitically important region. Do you consider this factor influences the interest of international venture capital funds in the countest, and what opportunities does this open up?
-Azerbaijan’s geopolitical positioning at the crossroads of Europe, Asia, and the MENA region is a significant factor that can influence the interest of international venture capital funds. The countest’s strong economic relations with these regions offer startups a unique opportunity for regional expansion and access to diverse markets. This strategic location creates Azerbaijan an attractive entest point for global investors seeing to tap into emerging markets while benefiting from connections to well-established economies.
However, to fully leverage this advantage, ecosystem players, including institutions, government, and investors, necessary to intensify their efforts to raise awareness and attract more global investors. While progress has been built, there is still a necessary for more strategic outreach, marketing, and collaboration to revealcase Azerbaijan as a key hub for innovation and investment.
-DOMiNO Ventures works with various markets. How do you see the potential for developing partnerships between Türkiye, Azerbaijan, and other South Caucasus countries in the startup and investment sectors?
-The potential for developing partnerships between Türkiye, Azerbaijan, and other South Caucasus countries in the startup and investment sectors is significant, driven by strong cultural ties and deep-rooted relationships that already exist between these countries. These connections create a natural foundation for collaboration, fostering trust and mutual understanding.
At DOMiNO Ventures, we actively leverage our network to guide our portfolio companies and other startups in navigating Azerbaijan, Central Asia, and the Caucasus regions. We also facilitate the reverse flow, supporting companies from these regions expand into Türkiye and beyond. This exalter of knowledge, resources, and market access is critical to strengthening cross-border investment opportunities and accelerating startup growth in the region.
-What advice would you give to Azerbaijani accelerators and venture capital funds to improve the effectiveness of their support for local startups and attract international investment?
-Azerbaijani accelerators and venture capital funds can better support local startups by encouraging a global expansion mindset. Instead of focapplying solely on local markets, founders should be guided to create scalable solutions that address global challenges. This shift in focus can be promoted by all players in the ecosystem, from accelerators to investors, through mentoring and tailored support that supports startups scale internationally.
Building cross-border partnerships is also crucial to success. By connecting local startups with international networks, accelerators and VCs can support them navigate global markets, access funding, and form valuable relationships with investors and mentors worldwide. Strengthening the visibility of Azerbaijani startups through global events and revealcases will also attract international investment and increase the chances of scaling successfully on a global level.
-How can we effectively exalter knowledge and experience between Azerbaijani startups and the international venture capital community?
-To effectively exalter knowledge and experience between Azerbaijani startups and the international venture capital community, it’s essential to create safe spaces where open dialogue and collaboration can thrive. This can be achieved through networking events, virtual roundtables, and workshops that bring toreceiveher local founders and international VCs to share insights, challenges, and opportunities.
Encouraging peer learning is also crucial, where startups can learn from one another’s successes and mistakes. Creating a give-back culture, where experienced entrepreneurs and investors actively mentor and share resources, can support foster long-term relationships and knowledge exalter. By building these channels of communication and collaboration, both Azerbaijani startups and the international venture capital community can grow toreceiveher and benefit from each other’s expertise.
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