RVC sets up new funds, bets on increase in private venture investing
By the end of 2016, Russian Venture Company wants to set up about $550m worth of new funds in select sectors; the overall capitalization of RVC’s funds, both existing and new, is expected to grow to $1.4bn
Dec 02, 2013
According to the most recent strategy for the next three years, currently being drafted by RVC, the national fund of funds for innovation is allocating $280m for new investments, including those into its existing funds. RVC is planning about $830m worth of its total financial commitments by 2016.
By the end of 2016, RVC hopes to contribute into the setup of thirteen new funds, bringing the total number of funds invested into by RVC over the years to 25.
The new funds will focus on aircraft and spacecraft technologies (including avionics), energy efficiency and energy saving, life science, and intelligent and IT systems.
A dramatic shift in the structure of Russia’s venture investment market has necessitated changes in corporate strategies, RVC underscored. On the one hand, the market has tripled since 2010 to as much as $1bn. On the other hand, there’s little balance in the emerging market that shows a serious dearth of private investments in pre-seed and seed stage projects, and an excessive share of Internet projects vs. a considerable lack of projects in other sectors.
Therefore, Russian Venture Company is from now on pursuing a strategic goal of "bringing a project-stage and sector balance into Russia’s VC market and ensuring its sustainable growth and globalization on the basis of a resourceful private-public partnership," RVC stated in its press release.
Objectives RVC has set for itself include, among other things, the development of financial and nonmonetary tools (including infrastructure ones) to support technology-focused entrepreneurship at early pre-seed and seed stages, and the development of both financial and nonmonetary mechanisms of backing innovation projects in the recently outlined priority sectors.
By the end of 2016, RVC hopes to contribute into the setup of thirteen new funds, bringing the total number of funds invested into by RVC over the years to 25.
The new funds will focus on aircraft and spacecraft technologies (including avionics), energy efficiency and energy saving, life science, and intelligent and IT systems.
A dramatic shift in the structure of Russia’s venture investment market has necessitated changes in corporate strategies, RVC underscored. On the one hand, the market has tripled since 2010 to as much as $1bn. On the other hand, there’s little balance in the emerging market that shows a serious dearth of private investments in pre-seed and seed stage projects, and an excessive share of Internet projects vs. a considerable lack of projects in other sectors.
Therefore, Russian Venture Company is from now on pursuing a strategic goal of "bringing a project-stage and sector balance into Russia’s VC market and ensuring its sustainable growth and globalization on the basis of a resourceful private-public partnership," RVC stated in its press release.
Objectives RVC has set for itself include, among other things, the development of financial and nonmonetary tools (including infrastructure ones) to support technology-focused entrepreneurship at early pre-seed and seed stages, and the development of both financial and nonmonetary mechanisms of backing innovation projects in the recently outlined priority sectors.