BAKU, Azerbaijan, October 9. Fintechs in Azerbaijan have gained momentum over the past three years, but uncertainty around their development has become apparent, prompting calls for regulation, Mammad Karim, General Partner of Caucasus Ventures venture fund, said at the Baku Fintech Forum 2025, Trend reports.
“In such an unregulated market, we as investors harbor concerns. Growth-related questions arise, and regulations could suddenly reduce a user base from 1 to 10 million. That is why our interest in fintech in this region has slightly decreased.
One opportunity and challenge often open doors to other possibilities. That is why we have started exploring domains from fintech to cybertech, and from cybertech to other sectors,” Karim said.
Caucasus Ventures represents the inaugural venture capital fund in Azerbaijan, strategically established in collaboration with the nation's Innovation and Digital Development Agency, PASHA Holding, and a consortium of private investors, aimed at catalyzing growth for post-seed and A-stage startups within the regional ecosystem. Armed with a capital infusion of 11.3 million manats, it strategically allocates resources to technology-centric enterprises across the Caucasus, Türkiye, Central Asia, and Eastern Europe, with an emphasis on catalyzing the innovation landscape within Azerbaijan.
Fintech, an abbreviation for financial technology, encompasses the integration of cutting-edge digital innovations to enhance and streamline financial services and products, thereby optimizing accessibility, efficiency, and cost-effectiveness. It encapsulates a diverse array of cutting-edge advancements, encompassing digital banking infrastructures, mobile transaction platforms, crowd-sourced funding mechanisms, algorithm-driven advisory services, virtual lending solutions, and decentralized ledger technologies exemplified by digital currencies.
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