Armenian government gives priority support to 'accomplished' IT companies, says startup engineer

In an interview with Tert.am, an owner of an Armenian startup company shared his concerns over the government's selective approaches to the IT sector, complaining about the policy of double standards attaching a priority to accomplished ventures.

The founder of FastMed, Grisha Korkotyan, said he had submitted an open letter to the Government and the Ministry of High-Tech Industries, requesting support for a COVID-19 grant project which, however, was rejected on the grounds of falling short to secure the necessary scores. Korkotyan said he later submitted the proposal for the 17th grant contest but was again rejected for a failure to meet the eligibility criteria.

The  Ministry promised to respond after a repeated submission of the bid, the startup engineer said, adding that the Government has not yet reacted to the proposal.

"It is deplorable that a country which has declared the IT sector a priority trend applies double standards, providing assistance only to the organizations which are accomplished and have a sufficiently big turnover and opportunities, whereas the companies which are on the way towards accomplishment and need  state assistance do not receive anything. Most of the selected companies are accomplished. With so many years' track record, they have attracted numerous grants and investments. And the startup contests attract mainly the same people representing the same startups, who eventually come out as winners," he said.

Korkotyan highlighted the essential problem-solving tool in their project, which he said could enable potential users to search and order the necessary medicine through a software app.

"Perhaps, the Government is right from its own perspective by providing assistance only to the companies which are already accomplished and will justify the investment. But given that the IT sector is declared a priority to encourage innovations, it is important to give an opportunity also to the startup organizations, especially those which create a product potentially resolving a big problem for the population," he added.

Korkotyan noted that their brainchild, developed back in 2017, gained an increasing actuality especially now, under conditions of the coronavirus-linked lockdown restrictions.

He added that he also sent separate letters to Prime Minister Nikol Pashinyan, Deputy Premier Tigran Avinyan and the minister of health but has not so far received any response.