Main  ›  Investment Activity  ›  Subsidiary Funds. Managing organization – RVC Infrafund  ›  RVC Seed Fund  ›  F.A.Q.

F.A.Q.

  • Venture partners of the Seed Fund (RVC Seed Fund Ltd.)

    • What are the functions of the venture partners of RVC Seed Fund Ltd.?
      • preliminary analysis (selection) of innovative projects for investment
      • preparation of project documentation
      • attraction of investments
      • post-investment support
    • Is it possible, in order to prepare an investment project, to address several venture partners, the information on which is posted on the fund's website?
      You may address several venture partners with a proposal for the preparation of your project for submission to the fund at any time and, during the negotiation process, determine the venture partner who offered the best working conditions. In order to protect intellectual property, we recommend that you discuss the confidentiality terms and the mode of use of information received (having become known) in the course of cooperation on the project.
    • What are the key requirements for venture partners?
      • the status of a legal person registered in the Russian Federation
      • in-house experts in the field of venture investment
      • self-sufficiency in economic activities
      • the ability to generate projects
      • the ability to attract private investment
      • registration as a venture partner of RVC Seed Fund Ltd.

  • Preparation and review of the application for the status of a venture partner

    • Which documents shall be attached to the application for the status of a venture partner?
      • application letter
      • information card of the venture partner
      • information card of the proponent (if any)
      • memorandum
      • letter of intent of the private investor (in any format)
      • proof of payment by the applicant for the services related to the implementation of actions to register the person registration as a venture partner
      • copy of the agreement with venture capital specialists
      • copy of the tax registration certificate
      • copy of the certificate of registration in the Unified State Register of Legal Entities
      • copy of the extract of the Unified State Register of Legal Entities, received no later than a month before submission
      • copy of the articles of association
      • copy of the document, confirming the authority of the director (letter of appointment, shareholders' resolution)
      • documents proving the applicant's financial resource capacity to cover the operating expenses (financial model of the applicant's operation as a venture partner)
      • copies of partnership agreements (with partner entities as specified in the memorandum)
      • list of the documents submitted

      The forms and necessary documents are presented here

    • In which format should the completed application for the status of a venture partner be submitted?
      The application shall be submitted in the form of a set of documents, identified in the list, with a copy of the application attached in electronic form. The set of documents shall be stitched, numbered and signed by the director of the entity. It is desirable that the electronic version of the application contains the memorandum in .doc or .pdf and doesn't exceed 7 MB.
    • Is it possible to add or modify the documents of the application that have already been submitted after its official submission to the RVC Seed Fund Ltd.?
      Yes, as an exception, it is possible, subject to coordination of actions with the fund's employee that prepares your application for a meeting of the commission for registration of the venture partners.
    • How many pages shall the memorandum contain?
      The volume of the memorandum is not regulated, but the content of the memorandum shall completely bring out the partner's capacity to create businesses. Keep in mind that brevity is the sister of talent, and that the volume of the document says nothing about its content.
    • Is it mandatory to have potential private investors to be registered as a venture partner?
      Yes, it is mandatory.
    • When may one obtain closing documents confirming the payment of fee (invoice and acceptance certificate) for registration of the venture partner?
      Documents are issued together with the certificate on conferring the status of a venture partner or with a notice of refusal to register.
    • Which documents are necessary to submit in the application set to confirm the company's ability to ensure its operating activities?

      The mandatory document is a financial model that includes:

      • sales plan
      • staffing plan
      • cost estimate
      • profit and loss forecast
      • net cash flow

      One shall also show the venture partner's agreements with the investors, the participants' assurances about pay-in for the purposes of operating activities, documents proving future earnings, letters of intent, and so on.

    • When can one get the contact details of employees of RVC Seed Fund Ltd., with whom the venture partner will interact?
      After the registration of the applicant as a venture partner, an informational letter is e-mailed, containing mail addresses and phone numbers of the fund's contact employees.
    • What is the minimum number of venture capital specialists required to obtain the status of a venture partner?
      At least one specialist.
    • What are the requirements as to the professional activities of the venture specialist?
      Knowledge, skills and experience in venture capital and investment areas, which are enough for the venture partner to perform its functions. It is advisable to specify where the details of the personal involvement of the specialist, in the projects, may be reviewed, from its reference list.
    • May venture capital specialists be on the staff of another company which is a 100% subsidiary company?
      Yes, they may. In this case, additional agreements between employees and the parent company, as well as copies of agreements of employment with the subsidiary, indicating the job description of the specialist, shall be provided.
    • Is it possible to attract a freelance venture capital specialist on the basis of a fixed-term employment agreement or a service agreement?
      Yes, it is.
    • Does it make sense to apply for registration of a venture partner without an employment relationship with the venture specialist, if it is planned to establish such a relationship with such specialist right after the registration?
      No, it doesn't make any sense. It is necessary that, at the time of submission of documents, a agreement with at least one venture capital specialist is established.
    • Which criteria do the commission use to evaluate the application for registration of a venture partner?
      Firstly, it is a set of formal criteria, according to which the applicant shall submit for registration a particular set of documents.
      Secondly, it is a range of evaluation criteria, which the registration commission uses to study the specialization of the applicant, the level of competence of the specialists in the field of venture capital investment, and to analyze the results of the applicant's activities in the field of venture capital. Such expertise and analytical approach is designed to ensure the selection of the applicants, who operate in the market of venture and direct investment and cooperate with innovative companies.
    • How long does it take to register a venture partner of RVC Seed Fund Ltd.?
      The whole procedure of registering a venture partner takes an average of 1 month.
    • In the case of the expiry of the registration period (12 months) of the venture partner, shall the re-registration (extension of registration) be paid for?
      If, within one year from the date of registration of the venture partner by the fund, at least one of its investment project is approved, the registration shall be extended free of charge. The venture partner shall only submit to the fund an application for re-registration not later than 30 working days before the expiry of the registration.
    • How quickly may one reapply for registration after the elimination of grounds for refusal?
      After having eliminated the grounds for refusal to register, specified in the notification from the fund, the applicant may reapply without delay, in accordance with the Regulation on the System of Venture Partners of RVC Seed Fund and the Procedure of Registration thereof.

  • Preparation of the memorandum for the application for the status of a venture partner

    • What does “Strategy working as a venture partner” section in the memorandum mean?
      This section shall include a description of the desired outcomes from cooperation with RVC Seed Fund Ltd., as well as resources, tools and techniques that will be used to achieve them.
    • May one ignore section 3.1. “Company's team/specialists” and section 3.1.1. “Experience and professional achievements of the team/specialists”?
      No, one may not.  It is necessary to strictly observe the structure of the memorandum. In paragraph 3.1, it is necessary to reflect the brief description of the team of specialists and bring their profiles, and in paragraph 3.1.1 - to reflect the main achievements of the group of specialists as a team.
    • What information must be indicated in section 3.1.4 “Information on participation in the boards of directors?”
      This section shall include information on the participation of the team members in the boards of other companies in the past and at present.
    • What information must be indicated in paragraph 4.3 “Specialization in other activity classes” of the memorandum?
      This paragraph must specify other classes of the company's specialization, i.e. by industry, by stage of the innovation process, by geography of businesses.
    • The memorandum of the venture partner has paragraph 6.2 “Letter of intent of the private investor to invest in investment projects.” Is it necessary to include this paragraph in the memorandum, if the venture partner intends to be personally involved in the project?
      Yes, it is. It is necessary to give a letter of intent to invest in the projects of the venture partner of RVC Seed Fund Ltd. in any format and on the letterhead of the venture partner, signed by the director and having the seal of the entity.

—
Venue: