A panel discussion on alternative investment instruments in Armenia was held at the Holiday Inn Yerevan, organized by the Investment Council of Armenia under the European Bank for Reconstruction and Development. The event brought together legal and financial professionals to discuss legislative reforms aimed at improving the investment climate in Armenia, particularly in relation to SAFE (Simple Agreement for Future Equity) contracts, convertible loans and option agreements.

Lilit Karapetyan, Partner at Concern Dialog Law Firm, was among the panelists, alongside Aram Khachatryan, Legal Counsel at the Enterprise Incubator Foundation; Ruben Osipyan, Director of the Science and Technology Angels Network; Karen Vardanyan, Managing Partner at Formula VC; and Hayk Malkhasyan, Senior Legal Advisor at the Investment Council Armenia.

During the discussion, Lilit Karapetyan emphasized that the previous restrictions on the use of convertible loans posed significant obstacles to company operations.

“In the absence of this tool, companies had to adopt more complex mechanisms to secure funding or attract investments,” she said. “The new legislative changes will allow investors to participate in the company’s growth through the possibility of converting debt into equity.”

She also stressed that while the legal recognition of these instruments is a critical first step, it is essential to maintain continuous oversight to identify and address any practical challenges in their implementation.

The panel also addressed the legislative reforms on SAFE agreement, a tool widely used in Silicon Valley and other developed startup ecosystems. The speakers noted that despite the absence of specific regulation in Armenia until recently, this instrument is already being applied in practice, highlighting the urgency of introducing appropriate legal frameworks.

Armenia’s investment environment is currently undergoing an active phase of development. The introduction and regulation of alternative investment instruments are expected to significantly enhance the country’s attractiveness to investors and contribute to sustainable economic growth.