As little as 0.6 percent of Iranian tech startup companies are able to access the world market, according to Reza Baqeri Asl, the deputy director of the Electronic Department of Iran’s Information Technology Organization.
“These companies are unable to align themselves with international trends,” Baqeri Asl asserts. He adds: “They must learn to adapt and grow in order to become part of the global technological ecosystem.” Iranian startups currently access 1.1 percent of the regional market.
Baqeri Asl says that of the 49 percent of all tech startups that have entered the Iranian market 15.6 percent are in their initial stage of growth, 11.5 percent are maturing and 33.4 percent are actually generating revenue.
“We can’t accurately value large startup companies until they are put on the stock market,” Baqeri Asl explains. “The actual value of some startups is far less than the speculated price.”
Baqeri points out that securing a business loan is not the primary problem of a startup company. “Having the financial means to cover a risky investment is the real issue. Hasty and dangerous investment is not the same thing as securing a loan” he says.
Baqeri says that 32.1 percent of problems faced by startup companies revolve around securing capital investment and another 14.6 percent relate to legal issues. “We are in the process of setting up an office to deal with the legal aspects of startup companies,” Baqeri Asl adds.
“Lack of organizational structure, a shortage of human resources and ineffective government policy are among the main issues which startup companies have to wrestle with,” Baqeri asserts.
In 2017, Iran dropped in the world ranking of a tech startup and e-commerce companies.