Government fund of funds
Development institute of the Russian Federation

Investment Strategy

The fund mainly aims at gaining maximal profitability on investors' capital, through investing at an acceptable investment risk level.

The fund promotes the generation of the key elements of the innovative procedure by its activity, including the creation of financial and innovative infrastructure, support of the development of scientific potential, engaging of private capital in the sphere of high tech and science-driven productions.

The main form of investment is: participation in the authorized capital by purchase of the shares of the legal entities as well as other forms of investments, conforming to the laws of the Russian Federation and the Rules of Trust Management (RTM). The fund strives to achieve an internal profitability rate of at least 25% over 5-7 years.

The fund invests into:

  • new and existing companies at the initial stage of innovation commercialization (starting financing stage);

  • companies needing additional investments to extend the range of the innovative products (works, services), international markets launch (stages of initial and / or rapid extension).

Basic Terms of Investment:

  • project commercial attractiveness (including the innovation has a high potential of creation / growth of the market niche);

  • participation of the fund in the company's management bodies, which implements the project;

  • a distinctly-defined time horizon of investments into the company and a clear strategy of withdrawal from it, when the pre-emptive purchase right, as a rule, belongs to the patent holder (i.e. the company may be interesting to the strategic buyers in the average-term perspective or possess the potential of IPO launch during the next 5-10 years);

  • stage-by-stage project financing;

  • project direction to the creation of new types of science-driven products (works, services), or increase of its technical level, implementation of new, and perfection of the applied, technologies;

  • project's conformity to priority directions of science, technologies and technique development of the Russian Federation;

  • availability of a strategic investor taking part in an authorized capital of the company with liquid material assets engaged in the project;

The fund's contribution is not restricted by investing capital, but includes, as well, value-adding activities like strategic and financial management, new markets launch, development of new products, entering into alliances etc.


Venue: