Government fund of funds
Development institute of the Russian Federation

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RVC identifies the winner of the competitive selection to manage NTI Fund

03.04.2018

During the selection phase the highest score was gained by the investment team Kama Flow. They are planning to sign legally binding documents with the managing partner before the end of May 2018 once due diligence is passed and corporate approvals are obtained.

In December 2017, RVC launched an open competition to fill the vacancy of the managing partner for the NTI Foundation as part of an updated strategy of creating investment tools. The fund will be established as an investment partnership for 10 years; its mandate will be focused on the tasks of the National Technological Initiative. The competitive selection was managed by the RVC Infrafund that in future is going to become a general partner, the Fund’s contributor.

All applicants went through a two-stage evaluation by an expert committee which consisted of heads of the NTI road maps and RVC representatives. At the first stage, the applicants were assessed by a set of objective criteria, including qualifications and remuneration of the managing partner as well as quality of the projects to be considered for investment on the first-priority basis. At the second stage, the participants held face-to-face presentations and interviews with members of the expert committee. The investment team Kama Flow scored most of the points and thus won the competitive selection.

‘It is the first time that RVC has used an open competition to find a managing partner for a venture fund. We are glad that the experiment was a success: we received high-quality applications from professional market players who declared themselves willing to work with the state capital. The independent committee has selected a team that will not only ensure return on invested capital and stimulate the growth of market segments, which are critically important for the national technological development. RVC plans to replicate the practice of management team competitive selection when setting up new funds,’ said Alexey Basov, Deputy CEO, Investment Director at RVC, Chairman of the competition expert committee.

The size of NTI Fund will total at least RUB 3 billion rubles, of which 1.5 billion are NTI subsidies, at least 1% is the money of the managing partner, the remaining sum is provided by co-investors attracted by the managing partner to the fund or portfolio companies. The fund will invest in Russian-based seed and pre-seed projects. The Fund’s technology priorities will be aimed at the development of end-to-end technologies, such as big data storage and analysis, artificial intelligence, blockchain, quantum technologies, virtual and augmented reality technologies and other areas.

‘This victory in the contest to select the right team to manage NTI venture fund was an important milestone for us. First of all, due to tough competition: we had to struggle with the strongest market players who took part in the competition.

Secondly, due to responsibility we are expected to assume within this project. The NTI Foundation should be one of the boosters for national technological development, support and accelerate the growth of Russian companies that have the makings for a global leadership. Moreover, the fund’s activities should follow the logic of classical venture investment, be commercially effective. Our expertise and competencies we have acquired over five years of investing in technology start-ups fully meet these challenges,’ commented Evgeniy Borisov, Development Director at Kama Flow.

The documentation on the selection procedure can be viewed at: http://www.rvc.ru/investments/fund_nti/




Information

About RVC

RVC JSC is a governmental fund of funds, the Institute of Development of the Russia's venture investment industry. The main objectives of RVC JSC: promote creation of Russia's own venture capital industry and execute functions of the Project Office of the National Technology Initiative (NTI). The authorized capital of RVC JSC is more than 30 billion roubles. One hundred per cent of the RVC capital is owned by the Russian Federation represented by the Federal Agency for Management of State Property of the Russian Federation (Rosimushchestvo). The total number of funds formed by RVC JSC has reached 26, their total size is 35.7 billion roubles. The share of RVC JSC is 22.7 billion rubles. The number of innovative companies approved for investment by RVC funds has reached 223. The total amount of monetary funds approved for investment is 18.2 billion roubles.
www.rvc.ru

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