According to CoinMeta, Azerbaijan is attracting foreign investment through a series of reforms aimed at fostering its small but growing technology industry and reducing its dependence on oil and gas exports. According to data from the International Monetary Fund, Azerbaijan has been heavily reliant on energy exports since its independence in 1991; during the oil boom, hydrocarbons accounted for about three-quarters of economic output and 90% of exports. In contrast, last year the technology industry accounted for only 2.1% of GDP. The government plans to increase this proportion and turn the capital city of Baku into a technology and innovation hub on the Caspian Sea. Legislation passed in July established a legal framework for investment tools, which is expected to attract foreign and venture capital. Azerbaijan's venture capital market is still relatively small; in 2025, only 22 startups raised $2.62 million.