RVC has published its Annual Report 2015, Value of Fundamentals. This report presents the company’s performance in creating both financial and non-financial development tools for building an innovation ecosystem in Russia, as well as its achievements in supporting the progress of the National Technology Initiative (NTI).
Among the highlights of the year 2015, the Prime Minister of the Russian Federation appointed RVC to function as Project Office for the National Technology Initiative (NTI), a program proposed by the President of the Russian Federation in an Address to the Federal Assembly in December 2014.
In 2015, RVC focused on elaborating methodological guidelines for the development of road maps, as well as providing administrative, technical, expert analytical, and information support to task teams working on road maps for the NTI.
Based on the work accomplished in 2015, the initial four road maps, including the AeroNet, AutoNet, MariNet for the development of intelligent transportation systems market and the NeuroNet for the neurotechnology market, were endorsed by the Office of the Council for the Modernization of the Economy and presented to the Government of the Russian Federation for adoption. Concepts for another two road maps, the HealthNet and the EnergyNet, were further endorsed by the Interdepartmental Working Group.
Furthermore, in 2015 RVC signed a cooperation agreement with the Skolkovo Institute of Science and Technology, intended to provide expert, scientific and technological support to NTI working teams, as well as a cooperation agreement with the Russian Technological Agency, envisioning support for the creation of project consortia as part of the implementation of NTI road maps.
In its investment activities in 2015, RVC focused on countering the decelerating growth rates of Russia’s venture investment industry, managing to prevent an aggravation of stage-related and industry-related imbalance in a number of areas, as well as to offset the significant market shrinking.
In 2015, RCV-backed venture investment funds targeted medical technology, pharmaceuticals, energy efficiency, space technology, and telecommunications industries as their priority investment areas. In the medical and pharmaceutical industries, investments made by RCV-backed funds were up 198% versus 2014. That being said, transactions by RCV-backed funds remained one of the major drivers in Russia’s venture capital market for biotechnology.
Throughout 2015, the government maintained an active participation in the creation of new funds. Specifically, three new RVC-backed venture funds with a total value of around RUB1.9 billion were established in 2015 based on investment partnership agreements. By year-end, the total number of funds with RVC’s involvement reached 23, of which 10 are based on investment partnership agreements. Their total value reached RUB33.7 billion. Throughout the course of RVC’s activities, a total of 191 projects were approved for investment, including 36 in 2015 alone. By year-end 2015, the total value of approved investment (excluding exited projects) reached RUB17.2 billion, which is a 90.5% increase versus 2014. By year-end 2015, 24 portfolio companies were exited.
In 2015, RVC drew a bottom-line assessment of its project for the support of portfolio companies. Within this project, 16 companies from the portfolios of RVC-backed funds benefited from consulting and marketing support. Program results report a total RUB166 million revenue growth achieved by the companies concerned.
In its efforts towards developing the innovation ecosystem in 2015, RVC remained focused primarily on building competencies and improving interaction efficiency in the venture capital market, promoting technology entrepreneurship, supporting regional infrastructures, and aiding in the globalization of Russia’s innovation industry.
For the purpose of building a community of venture investors and strengthening their expertise, RVC is implementing an investor development program. In 2015, this program saw the participation of over 2000 people from 35 regions in Russia, with business angels and representatives of several venture investment funds and corporations among them. In addition to this, RVS has drawn up and published five analytical reports on the venture investment market.
Remaining a top priority in ecosystem activities for RVC is the program for the globalization of the Russian innovation industry, focusing on pooling and studying current data on the most promising international innovation markets, building partnerships with their key players, and incorporating products and services created by Russian technology companies into global value chains. Among the key achievements of this program in 2015, the export value of the portfolio companies with the involvement of RVC-backed funds grew to a total of USD44 million, 169 Russian companies were provided expert support in their efforts to expand to international markets, and 5 studies of high-potential export markets were performed.
As part of the program for promoting innovation activities, 2015 saw the implementation of a number of initiatives designed to popularize and promote scientific, technical, and innovation activities by developing innovation journalism and accelerating industry-related networking events and media. As of year-end 2015, the total audience coverage by the media for the projects encompassed by the program reached 20 million people. Besides this, RVC has also designed and presented a designated program for popularizing scientific, R&D, and innovation activities. Furthermore, RVC has completed four analytical studies on the key subjects related to the projects implemented within the program.
During its four years of existence, the TechUp national rating for fast-developing high-tech companies has proven itself as an effective tool for bringing out, monitoring, and promoting fast-growing high-tech companies with high leadership potential in both domestic and global markets. The rating’s 2015 edition featured 260 companies, of which 50 were shortlisted, with the average annual revenue benchmark at around RUB1.6 billion. Based on the 2015 bottom-line, the companies featured in this rating have demonstrated an average annual growth of over 30%, spending over a quarter of their earnings on technology innovations.
With a view to strengthening cooperative relations among innovation ecosystem members, RVC is implementing a program for the development of an innovation ecosystem, focused on expanding accessible facilities, as well as establishing and building innovation ecosystems for universities and scientific institutions. Based on the 2015 bottom-line, more than 170 innovation industry facilities were covered by RVC-operated support and development efforts and programs.
2015 saw further progress on cross-program projects for the development of an innovation ecosystem. The largest-scale startup accelerator in Russia and Eastern Europe, the GenerationS, was implemented for the third time. Since 2015, the resources of the GenerationS have been used to create corporate accelerators, with corporations participating directly in the selection, expert assessment, and acceleration of projects based on their own requirements in terms of innovation developments. In the past year, the GenerationS received a record-breaking number of over 2560 applications, which is an impressive 1.4 times increase versus 2014. The number of regional projects went up 1.5 times, and the amount of projects from research-intensive areas doubled from the year before. The project’s 2015 edition saw 2159 startups from 139 Russian cities and 14 countries presenting their developments. Bringing together over 150 partners including government institutions and for-profit businesses, this project has proven itself as the largest startup accelerator within Russia and the CIS.
In 2015, RVC devoted particular efforts to developing the institution of intellectual property as one of the key instruments ensuring the country’s technological, economic, social, and cultural development. In 2015, RVC presented a method of developing practices for the management of intellectual property rights generated by public and private companies as well as scientific and educational institutions. Furthermore, RVC has presented a concept for the establishment and operation of a Patent Aggregator Fund, issued a proposal for the establishment of an efficient institutional environment in the field of intellectual property, and administered 10 educational events on the subject.
In the past year, partnering with EY and a number of leading venture investment market experts, RVC has worked out a Development Strategy proposal for the Russian venture investment industry. This strategy envisions a series of goal-oriented, efficient, and coordinated actions to be taken by the government, the development institutions and the market players for the venture investment industry to evolve into a prominent part of the innovation ecosystem. As an important achievement of this project, a number of the proposed provisions were included into the updated Strategy of Innovation Development of the Russian Federation until 2030.
In 2015, along with other public development institutions, RVC had its performance meticulously evaluated by independent consulting service providers. As a result, the company has received positive appraisal from the Government of the Russian Federation as it implemented an extensive performance assessment of innovation-based development institutions in terms of their contribution to the technological upgrade of the Russian economy.
The complete edition of the Annual Report 2015 is available at the following link:
RVC OJSC, a public limited company, is a state-established fund of funds and public development institution for the Russian Federation, founded by the government to function as a core tool for building a national innovation industry. With an authorized capital of over 30 billion rubles, RVC OJSC is 100% owned by the Russian government, represented by the Federal Agency for State Property Management (Rosimuschestvo). Since 2015, RVC has been designated as the project office for implementing the National Technology Initiative (NTI), a strategy aimed at establishing brand new markets and shaping an environment for Russia to achieve global technology leadership by 2035.
For further information, please contact:
The Public Relations Department with RVC OJSC
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