What Iran nuclear deal means for Startups
Iran strikes a ‘framework deal’ with E3+3 on nuclear issue. As a result, all sanctions will be lifted in the next 10 years. The financial sanctions are expected to be lifted first. It’s a new Iran, but what does that mean for Iranian startups? how about international investors/startups?
For the last two years, Iran’s startup ecosystem has flourished. Iran has three seed accelerators already, a few VCs and incubators. eCommerce is growing at rocket high speed. Technology infrastructure improvements combined with huge middle income population means there are unprecedented opportunities. Iran is probably the biggest untapped market in Middle East with huge potentials.
Financial Sanctions
The financial sanctions crippled Iran’s economy. Iran lost access to the SWIFT network which meant no more cash flowing into Iran from other countries. Per today’s agreement, financial sanctions that prevent money transfers to Iran will be lifted first. It means foreign investors can start their research on Iranian startups and build a network. Angel investors can start their due diligence process on prospective startups. And growing startups can mark Iran as their next expansion market. Not surprisingly there are already a few investors from European countries in Iran. They know the importance of building a network in the country as early as possible. There have even been some highly-rumored and undisclosed investments.
Isn’t it too early?
Perhaps it’s too early and risky to invest a lot of money in Iran. However, as the ecosystem is young and many startups are mostly in their early stages, small seed investments can be a great way to test the water. After all, in great risks are great rewards.
Another approach could be investing through other local VC firms for now. It’s in the interest of local VCs to build this relationship and foreign investors can also get to know the market a little bit better. Ultimately, as the ecosystem grows, it’s good for everyone to pump in more money into this entrepreneurship engine.
Optimism
The more important effect of this deal would be optimism it will foster among the general public and entrepreneurs. The general public will (appropriately) see this deal as a sign of positive changes in the country and a better financial future. They will most likely spend more money and provide early stage startups with more traction.
The entrepreneurs will reach high echelons of success once they find their market raise higher capital and access global markets and services. Their success will in turn encourage more of Iran’s youth to give entrepreneurship a try. Creating a positive cycle that can help mend Iran’s fragile, oil-dependent, economy.
The more positive future can possibly encourage more youngsters to give entrepreneurship a try. For Iran, it is the quickest way to mend it’s fragile economy.
Learn more about Iran
You can get in touch with community builders and key players in Iran to learn more about startups in Iran. They are the best source of information. You can find a list of them at the end of this article. There are also links to accelerators, investors, and events.
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Key contacts
Accelerators
Investors
Events
Hamfekr, a weekly meetup for entrepreneurs.
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