Government fund of funds
Development institute of the Russian Federation

F.A.Q.

  • Who may act as a private co-investor?
    Either a natural person or a legal entity, including the initiator of the project, may be a private co-investor.  However, an organization in which the state holds a capital share of more than 50% cannot be a private co-investor.
  • Is return of investments received from the Fund anticipated?  To what extent?
    The Biofund plans to obtain income from investments at the moment that its share in the company’s portfolio is sold.  The requirements for profitability differ with service and manufacturing projects.  The cost of the Fund’s share depends on the chosen strategy for expenditure and the structure of the transaction agreed among the parties.
  • What are the Biofund’s requirements regarding the size of the share received?
    The Biofund does not insist on obtaining a controlling package in the company’s portfolio, but nevertheless will consider transactions in which the Fund’s share is not less than 25%.
  • If a company does not need to raise 200 million rubles, can the company obtain financing of 5 or 10 million rubles?
    Yes, 200 million rubles is just the upper limit for investment in the first round.  A lower limit for the volume of investment has not been set.
  • How critical is the 25/75% ratio of investments on the part of the private investor and the Fund in the case of a service project and 50/50% in the case of a manufacturing project?
    25% or 50% for private investment is the minimal limiting value.  If desired, the private investor can also offer a greater portion of the investment demand.
  • I am the author of an innovative project that does not have customary structuring of investment transactions.  Who should I turn to for preparation of the investment project?
    If the project corresponds to a specialization sector of the Fund, the applicant can be given informational support with regard to possible tools for completing that task.

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