The RVC Portfolio Funds Value Reaches 14.2 Billion Roubles
The value of the current portfolio of Russian Venture Company (RVC) funds has grown by 50% since 2017 and amounted to 14.2 billion roubles, the company said.
“The appraised value of the current portfolio of RVC funds, which at the end of the third quarter of 2020 included 150 innovative companies, amounted to 14.2 billion roubles, having increased by 50% since 2017”, the release says.
The return on capital indicator (TVPI, one of the key performance indicators of venture capital funds, reflects the ratio of the total value of assets to the invested capital) exceeded the figure of one. The actual return since 2017 has increased by 7.1 billion roubles. The total return on funds amounted to about 10.5 billion roubles, which is 2.1 billion roubles higher than the investment.
“By 2020, two-thirds of venture funds created with the participation of RVC capital entered the post-investment phase and focused on exits from invested companies. By the end of the third quarter of 2020, RVC funds had implemented 150 exits. More than 70% of transactions fell on the period since 2017, including over 20 exit transactions closed in 2020”.
“Purposeful work to increase the profitability of the RVC portfolio, which has been carried out over the past few years along with the creation of new funds, has made it possible to achieve an excess of the value of assets over the number of investments already at the current investment stage. The fulfillment of state tasks for the development of technological markets, in balance with the return on capital, is one of the key strategic goals of RVC”, commented Deputy General Director, Investment Director of RVC Alexei Basov.
“The focus on the best investment practices and professional managers has paid off, and we are confident that extra growth in the value of the portfolio will provide the fund of funds with market returns”, he added.
RVC is a state fund of funds, an institution for developing the Russian venture capital industry. The main objectives of the Company are to stimulate the creation of Russia's own venture capital industry and execute functions of the Project Office of the National Technology Initiative (NTI). Currently, its portfolio includes 29 funds with a total capitalization of 64.4 billion roubles. The total volume of RVC funds is 20% of the total capitalization of funds in the Russian venture capital market. The funds created with RVC capital participation account for 32% of the total number of active venture capital funds in Russia, including foreign funds investing in Russian projects.