RVC’s Board of Directors has formally developed key criteria for the selection of future asset management companies and general partners, with the goal to enable the foundation of new funds benefitting Russian entrepreneurship. In the upcoming year, RVC will invest into several new diversified venture funds, to include seed and early stage funds, as well as specialized branch (cluster) funds. RVC also feels there is an opportunity to increase venture funds through the fundraising stage of those organizations already active in the Russian market.
“To achieve RVC’s long-term development strategy goals, an expansion of financial opportunities in venture markets is needed,” said RVC CEO Igor Agamirzian. “We can reach these goals by initiating a specific number of new public-private venture funds. This will also enable an investment managers’ ability to discover and promote the most successful teams, as well as engage foreign experts and investors.”
The process of creating new funds will rely heavily on global standards, which include a thorough examination of applicants and their ability to successfully carry out fundraising in competitive Russian and international markets. Management companies, also referred to as General Partners, will have to possess the structure and capability to implement best practices for the creation and development of successful international technological companies. Additionally, a new organizational legal form for ‘investment partnership’, which to date had not been used, will now be utilized in the development of new RVC venture funds. RVC feels this innovation is necessary for the Russian venture market (Federal Law No. 335-FZ "On Investment Partnership" has come into effect starting January 1, 2012).
RVC’s new branch (cluster) funds will focus on intelligence systems, nuclear associated technology, alternative energy and energy efficiency, and aerospace technologies. These funds will include a maximum volume of commitments for 2012 to include up to 1 billion rubles ($33 million) for nuclear associated technology, up to 2 billion rubles ($65 million) for alternative energy and energy efficiency, up to 2 billion rubles ($65 million) for intelligence systems and up to 2 billion rubles ($65 million) for aerospace technology. RVC’s Board of Directors approved the proposed finance plan which allows RVC to transfer funds to the new diversified funds in 2012. RVC’s current seed funds may total up to 5 billion rubles ($160 million) and their early stage funds are approximately 7 billion rubles ($225 million)
“One of the key Russian venture market development indicators is the volume of investment in innovation companies and venture fund transactions as well as M&A transactions with respective assets,” comments Yan Ryazantsev, RVC Chief Investment Officer. “RVC’s new strategy will allow us to assist the common challenge of starting capital for innovators as well as increase interest and demand of Russia’s technology sector among private enterprise. We envision these new funds to involve close collaboration both inside and outside of Russia.”
Additional Board of Directors Meeting Information:
Statute “On selection procedure of managing companies for the purpose of transfer of Open Joint Stock Company ‘RVC’ monetary funds into trust management” can be found on the RVC website in the ‘Company profile’ section — ‘Main Documents’ (currently only available in Russian).
Extracts from the record of the OJSC RVC Board of Directors meeting, as well as values of the selection criteria applied to managing companies, general partners and venture funds under their management can be found on the RVC website in the ‘Company profile’ section — ‘Main Documents’ (currently only available in Russian).