18:07 | 01.04.19 | News | exclusive 5412

Granatus Tech4SDG: Granatus Ventures establishes new investment fund with UNDP support

UNDP Armenia has signed an agreement with Granatus Ventures today to establish and manage the Granatus Tech4SDG Fund.

The fund, with a target size of USD 40 million, will make investments in technology-driven ventures that demonstrate strong potential for social and environmental impact.

This initiative addresses the investment gap necessary to achieve the UN Sustainable Development Goals (SDGs) by 2030.

UNDP Armenia Impact Investment Advisor Vahagn Voskanyan has told Itel.am that the fund will probably be registered in the EU because investors feel more secure when cooperating with funds that operate in the European legal framework.

According to Voskanyan, it took over a year to prepare everything for establishment of the fund.

“We conducted a lengthy selection and chose Granatus Ventures because they had the best offer. We are supporting a fund that will attract foreign investors along with accumulating its own finances, and it will be done with support from UNDP,” he highlighted.

UNDP will act as a Sustainability Partner, sharing best practices in impact management and the application of internationally accepted Environmental, Social and Governance (ESG) standards across the investment process. UNDP will also provide financial support to structure the fund, and assist in the fundraising process and in sourcing relevant deal flow across key markets.

The Granatus Tech4SDG Fund aims to leverage rapidly developing technologies and engineering talent to maximize the social and environmental impact and mitigate ESG risks of its investments.

According to Granatus Ventures Co-Founder and Managing Partner Manuk Hergnyan, the fund targets companies worldwide, particularly in developing countries. He added that they plan to invest USD 1 to 3 million in seed stage as well as in A and B rounds.

“UNDP does not perform as an investor, it supports the launch of the fund and the fund will have institutional investors. We always wanted our second fund to be built on solutions for key human issues, using the potential of technologies. In this regard, the UN Sustainable Development Goals are a great framework,” stressed Hergnyan.

This initiative is part of “Tech4SDGs Financing Platform” by UNDP in Armenia to unlock the potential of local and international private financing for the acceleration of the SDGs.