The Securities and Exchange Organization and the Ministry of Industries on Wednesday signed a memorandum of understanding to inject “small funds” into the financing of companies.
The MoU was signed by SEO chief Mohammad Ali Dehqan-Dehnavi, Industries Minister Alireza Razm-Hosseini and CEOs of financial companies involved in crowdfunding, Iran’s public relations site Fara reported. Stock Exchange.
Striving to finance businesses, the Ministry of Industry plans to tap the capital market for much-needed funds. âInnovation in the capital market has facilitated its role in financing the economy,â Dehqan-Dehnavi said.
âCrowdfunding is a new phenomenon [in Iranâs capital market] and we want to improve it in cooperation with the Ministry of Industry, âhe said.
Razm-Hosseini spoke of innovative financial solutions to help finance high yielding companies, adding that to date 100 companies have been identified.
Among the businesses eligible for crowdfunding assistance are knowledge-based businesses, SMEs, small-scale development projects, startups and small mines.
Crowdfunding is the use of small amounts of capital from a large number of individuals to fund a new business. It offers easy access to vast networks of people via social media and websites to bring investors and entrepreneurs closer together, with the potential to increase entrepreneurship by expanding the investor base.