Kyrgyzstan has developed a law on venture financing

The proposal suggests introducing into legislation the concepts of “venture financing,” “venture investor,” “venture manager,” “venture fund,” “business angel,” “startup,” “option agreement,” and “option pool.”

It also provides for the introduction of new “instruments” for venture investors and startups: “option agreement,” “convertible loan agreement,” “agreement on future equity stake in a company,” and “definition of liquidation preferences.”

The state participates in venture activities by allocating funds from the state budget to finance innovations in entrepreneurial activities, as well as:

— providing tax incentives to stimulate private investments

— establishing funds for subsequent investment in private venture funds to reduce risks for private investors

— providing grants to startups and loan guarantees to encourage lending

— improving legislation aimed at creating a favorable environment and ensuring consistent development of venture financing in the Kyrgyz Republic.

Source: koomtalkuu.gov.kg