Siavash Maleki-Far, speaking on Monday at a specialized session titled “Modern Financing Methods in the Tech-Based Ecosystem of the Oil Industry” during the Third Petrotech Conference, referenced a 2010 parliamentary resolution supporting the tech-based economy.

He noted that over 10,000 NTBFs are currently active in the country, contributing between 1% to 3% of the gross domestic product (GDP).

Highlighting the global growth of the tech-based economy, Maleki-Far said many regional countries, including Turkey and Persian Gulf states, are working to reduce their reliance on oil and develop knowledge-based economies.

He explained that the Innovation and Prosperity Fund, established in 2008 with an initial capital of 3 trillion tomans, is one of the most important financing tools for NTBFs.

The fund, now with a capital of 10 trillion tomans, serves these companies and is projected to increase its capital to 50 trillion tomans under the seventh development plan.

Maleki-Far stressed the need to design a tech-based financing system, noting that no country relies on a single entity or tool to finance such companies. He emphasized the key role of leveraging private sector capacities, banks, and capital markets in supporting these firms.

He identified crowdfunding as a modern financing method, which has been implemented in recent years by Iran’s over-the-counter (OTC) market. This tool offers significant returns for investors and helps knowledge-based companies secure working capital from public sources.

Maleki-Far added that banks are often reluctant to provide loans to startups, underscoring the importance of venture capital (VC). He noted that while the VC industry is growing in Iran, it still requires further development.

Contrary to public perception, he said direct government involvement in NTBFs is not necessarily beneficial. Global experience shows that government support should be indirect, focusing on creating appropriate infrastructure.

Referring to Article 99 of the Seventh Development Plan, Maleki-Far said large companies can participate in tech-based projects by investing in the Innovation and Prosperity Fund. This step, he said, is an effective measure for the growth and development of the country’s knowledge-based economy.