TEHRAN – The vice presidency for science and technology plans to establish a national system for venture capitals - a form of financing that is provided by firms or funds to small, early-stage, emerging firms that are deemed to have high growth potential.

The system encourages investors to invest in the field of knowledge-based companies and connect the investors with the companies who seek the fund.

The system provides investor network, technology and innovative plan data bank, assessment of the projects for authenticity and propose new methods for financial challenges.

Venture capitalists take on the risk of financing risky start-ups in the hopes that some of the firms they support will become successful. Because startups face high uncertainty, VC investment do have high rates of failure. 

The startups are usually based on an innovative technology or business model and they are usually from the high technology industries, such as information technology, clean technology or biotechnology.

SB/MQ/MG