Investments into startups in post-conflict territories ofMe the idea of investments into startups in post-conflict territories seemed to very interesting . Kevin Breytueyt, the businessman and the director of an incubator of RootSpace, in the Silicon Valley, one of the first beginnings to invest in startups, in postkonfdiktny territories. At present time, Kevin very actively invests in startups in the territory of Lebanon.
It is radical and very risky idea, but in too time, it can provide huge inflow of the capital, owing to immaturity of the markets. The increasing number of investors look for a possibility of investment by this principle.
The group of experts from San - Frantsisko noted that it is really mad idea as poverty level in these countries makes 54%, there is enough to frighten any, traditionally adjusted investor. There are obvious risks: instability, lack of infrastructure, high level of irrevocability of the credits and the massive brain drain caused by emigration from the most educated and mobile part of the population.
But shift among investors is obvious, interest in post-conflict territories is shown also by the governments of many states. For example, the USA is annually allocated by about $100 billion for the help with it to the countries. Russia also to aspire not help, but also quite successfully invests in economy of the countries which left the conflict.
One of the most striking examples of post-conflict investments is the example of the International Institute of foreign languages and Management (International Languages and Management Institute) in Kigali, Rwanda. When its government declared that they by 2020 national language will be changed from French on English, the local businessman Alphonse Byuysa saw in it an opportunity. By means of group of the American students business - schools, Byuysa attracted $100 thousand investments and constructed private school. There are also larger examples, the Rwandan Investment Group attracted $25 million in the starting capital and began construction of cement works and energy companies.
We will return to Kevin Breytueyt, in 2008 he based RootSpace - it is business - an incubator in Beirut. Since then he cooperates with individuals, news agencies, allocates grants for a trip of young journalists and cinemas to the different countries, helps them to make youth newspapers.
One of the most serious problems in creation of profitable business in these countries is lack of innovations and intuitive understanding of global demand in the market. Also very capacious fear was put forward by David Ferguson, the director of Global fund for development of USAID: “ According to research of the World bank, 40% from a zone of the conflict to return to the conditions of the conflict within a decade. It is a deadly spiral “. Try to invest not only for the sake of profit, but also for the good of the state.
In post-conflict investments there is also one more plus, besides very big: such type of investments is an excellent way to keep development of the country in which you invest money. In this situation investments will be followed by big risks, but as French speak:
“ Qui ne risque rien, n’a rien “