The Armenian company CQ Ampega invested $6 million in Formula VC Fund II

CQ Ampega Asset Management Armenia, the pension and investment asset manager in Armenia, has allocated $6 million from its CQ Conservative pension fund and $90,000 from the CQ Balanced fund to Formula VC Fund II, a venture capital fund investing in early-stage technology companies. The technology sector is among the priority industries of the Armenian economy, meaning long-term pension savings are being directed toward real-sector companies.

The CQ Ampega Investment Committee conducted due diligence, evaluating the fund and its general partners against several criteria. The investment decision was made after analyzing risks and conducting compliance checks. Positive factors influencing the decision included:

— the fund’s strategy and portfolio construction approach, ensuring diversification within the technology sector
— the performance achieved by the first Formula VC fund
— the operational experience of the general partners and their direct involvement in the work of portfolio companies
— commitment to implementing institutional standards and international practices
— direct communication with investors and portfolio companies.

The investment also strengthens the link between Armenia’s financial and technology sectors, which previously developed in parallel rather than in interaction with each other.

Arman Vardanyan, CEO of CQ Ampega Asset Management Armenia, stated that the investment diversifies pension funds and creates a new source of additional returns for participants over the long term. Through the fund, approximately 450,000 citizens whose pension assets are managed by C-Quadrat Ampega gain exposure to a strategic industry. The investment represents approximately 0.3% of assets under management—a level calibrated to the acceptable risk for pension funds—while the amount is significant for Armenia’s technology sector.

Karen Vardanyan, General Partner of Formula VC, noted that in 2024, CQ Ampega became the sole institutional investor in the first Formula VC fund, pioneering pension venture investments both in Armenia and in European ecosystems. Formula VC is now investing through its second fund. Vardanyan identified the development of artificial intelligence as a factor making Armenia a regional hub for AI infrastructure and an attractive direction for startups.

CQ Ampega Asset Management Armenia manages over 760 billion Armenian drams in pension and investment assets on behalf of approximately 460,000 participants. The company was founded by Austrian and German asset managers. Formula VC is a venture capital fund investing in early-stage startups and supporting them with resources, connections, and access to professional networks.