Russia helps Ural region develop local venture environment
RVC, Russia’s national fund of funds for innovation, has provided methodology for a new venture fund in the Sverdlovsk region, in the Urals, an effort aimed at developing local VC infrastructure for early-stage projects
Nov 28, 2014
Unlike its predecessor in the region, the new $3.3m fund will be able to invest in its portfolio companies directly, without having to work via a management firm as it was in the previous venture fund in the region, RVC underscored.
Under the new concept, the fund will be launching tenders to look for venture investors willing to support early-stage companies, and is committing to co-financing the projects selected. The Sverdlovsk Regional Venture Fund hopes to build a portfolio of at least eight small innovative companies, RVC said.
The fund’s investment priorities will include projects operating in the fields of mechanical engineering, new materials, chemical production, electronics, instrumentation, and IT.
"When relying on a management firm, the regional fund couldn’t support the region’s drive for the development of new start-ups. The management company would opt not to get involved in high-risk projects, pleading the interests of a private investor. That led to the funding of just two projects out of 200 considered. One private investor was given the fund’s entire capital to manage for six-to-seven years. In the new system, we’re considerably expanding our list of private investors eligible for the fund’s co-financing program, thus reducing risks for those ready to invest in innovation companies at early stages," explained Elena Tochilina, the director of the fund.
Under the new concept, the fund will be launching tenders to look for venture investors willing to support early-stage companies, and is committing to co-financing the projects selected. The Sverdlovsk Regional Venture Fund hopes to build a portfolio of at least eight small innovative companies, RVC said.
The fund’s investment priorities will include projects operating in the fields of mechanical engineering, new materials, chemical production, electronics, instrumentation, and IT.
"When relying on a management firm, the regional fund couldn’t support the region’s drive for the development of new start-ups. The management company would opt not to get involved in high-risk projects, pleading the interests of a private investor. That led to the funding of just two projects out of 200 considered. One private investor was given the fund’s entire capital to manage for six-to-seven years. In the new system, we’re considerably expanding our list of private investors eligible for the fund’s co-financing program, thus reducing risks for those ready to invest in innovation companies at early stages," explained Elena Tochilina, the director of the fund.