Venture Capital - Iran

  • Iran
  • The total capital raised in the Venture Capital market market in Iran is projected to reach US$35.4m in 2024.
  • Early Stage dominates the market with a projected market volume of US$18.0m in 2024.
  • In global comparison, most capital raised will be generated the United States (US$264,500.0m in 2024).
  • Iran's Venture Capital market is gaining traction, attracting investors seeking opportunities in the country's tech and innovation ecosystem.

Key regions: Europe, United States, United Kingdom, Australia, Brazil

 
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Analyst Opinion

The Venture Capital market in Iran has been experiencing significant growth in recent years, driven by a combination of customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors.

Customer preferences:
Iranian entrepreneurs are increasingly seeking venture capital funding to fuel their business ideas and innovations. This is driven by a desire to access the necessary capital to scale their businesses quickly and efficiently. Entrepreneurs are attracted to venture capital funding as it provides not only financial support but also strategic guidance and industry expertise. Additionally, venture capital investors often have extensive networks that can help entrepreneurs connect with potential customers, partners, and suppliers.

Trends in the market:
One of the key trends in the Venture Capital market in Iran is the emergence of technology startups. The country has a young and tech-savvy population, which has led to the growth of innovative startups in sectors such as e-commerce, fintech, healthtech, and transportation. These startups are attracting the attention of venture capital investors who see the potential for high returns on their investments. Another trend in the market is the increasing number of venture capital firms and funds in Iran. These firms are actively seeking investment opportunities in promising startups and are providing the necessary capital and support to help them grow. This trend is fueled by the growing interest in venture capital investing among both domestic and international investors.

Local special circumstances:
One of the special circumstances in Iran is the government's support for entrepreneurship and innovation. The government has implemented policies and initiatives to encourage the growth of startups and attract venture capital investment. These include the establishment of startup accelerators, the provision of grants and subsidies to startups, and the simplification of regulations and procedures for starting and operating a business. Another special circumstance is the presence of a large and educated workforce in Iran. This provides a strong talent pool for startups and makes the country an attractive destination for venture capital investment. Additionally, Iran's strategic location between the Middle East and Central Asia offers access to a large and diverse market, further enhancing the potential for growth and success for startups in the country.

Underlying macroeconomic factors:
The Venture Capital market in Iran is also influenced by underlying macroeconomic factors. The country has experienced steady economic growth in recent years, which has created a favorable environment for startups and venture capital investment. Additionally, Iran has a relatively low cost of living and operating compared to other countries in the region, making it an attractive destination for startups and venture capital investors. Furthermore, Iran has a strong entrepreneurial culture and a history of innovation. This entrepreneurial spirit, combined with the availability of venture capital funding, has created a fertile ground for the growth of startups and the development of a vibrant Venture Capital market in the country. In conclusion, the Venture Capital market in Iran is experiencing significant growth due to customer preferences for venture capital funding, the emergence of technology startups, the increasing number of venture capital firms and funds, government support for entrepreneurship and innovation, a large and educated workforce, favorable macroeconomic factors, and a strong entrepreneurial culture. These factors are driving the development of a dynamic and thriving Venture Capital market in Iran.

Methodology

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on the amount of capital raised, the average of deal size and the number of deals.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use data from OECD, annual financial reports of key players, industry reports, third-party reports, publicly available databases, and survey results from primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, CPI, number of small and medium-sized enterprises (SME), new businesses registered (number) . This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.

Overview

  • Capital Raised
  • Average Deal Size
  • Global Comparison
  • Number of Deals
  • Analyst Opinion
  • Methodology
  • Key Market Indicators
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