Government fund of funds
Development institute of the Russian Federation

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NTI Foundation attracts the first investors

24.05.2018

The Memorandum to found the National Technological Initiative was signed at the St. Petersburg International Economic Forum. Among the first private co-investors of the Fund were GasServiceComposite, JSC and Lomonosov Capital MC, the Fund’s managing partner was Kama Flow group company. According to the terms of the Memorandum, the total volume of investment obligations of private co-investors amounted to 600 million rubles

The National Technology Initiative Fund is being created by RVC to support innovative projects that develop ‘end-to-end technologies’, critically important for new NTI markets. They are technologies for storing and analyzing big data, artificial intelligence, blockchain, quantum technologies, new energy sources, robotics, virtual and augmented reality technologies and neurotechnologies. Overall, the Fund’s size together with moneys raised as co-investments in portfolio companies will be at least RUB 3.5 billion, of which RUB 1.5 billion rubles was contributed by RVC Infrafund through the NTI subsidies. The fund will be functioning as an investment partnership for 10 years, the investment period will be 5 years.

In April 2018, the Kama Flow company group won the open competition to manage the NTI Foundation. As managing partner, Kama Flow has enticed the first private co-investors to the fund with a total investment commitment of 600 million rubles. These included JSC GasServiceComposite and Lomonosov Capital MC. Kama Flow also contributes RUB 50M to the fund's capital.

According to the investment strategy, the NTI Fund will be invest in Russian pre-seed and seed projects. The volume of investments in one portfolio company will not exceed 10% of the total investment obligations, unless otherwise decided by the general meeting of partners. In total, the fund plans to invest in at least 8 portfolio companies.

‘The Fund will ensure that NTI projects have diverse instruments of financial support. We plan to use venture investment as an addition and alternative to grant support, which is still the most frequently used mechanism. The Fund is actively engaged in forming a pool of projects and we expect to announce the first deals before the end of 2018,’ said Alexander Povalko, General Director of the RVC.

‘The NTI Foundation is a unique example of a venture fund, which on the one hand solves an important state task to accelerate the development of priority technological sectors, on the other hand it does this with the involvement of a significant amount of private capital. Thanks to this concept, we will have the most effective financial instruments for the development of NTI projects. The managing partner of the fund was first defined as a result of the open and independent competitive procedure. This corresponds to RVC’s renewed investment strategy, which actively involves professional market players in the management of our funds,‘ commented Alexey Basov, Deputy Director General and Investment Director of the RVC.

‘We believe that the key to the fund’s success is an active interaction with the Russian large and medium-sized production businesses both in terms of attracting financial resources and joint investments, and uniting science-and-technology, production, engineering expertise. We expect the Fund to follow this path from the start when searching for future national champions,‘ said Evgeniy Borisov, Development director at Kama Flow.

The NTI Fund was proposed by the National Technology Initiative ‘Venture Support for Growing NTI Companies’. The project was approved on October 18, 2017 by the decision of the Interdepartmental Working Group on the Development and Implementation of the National Technological Initiative under the Presidium of the Presidential Council for Modernization of the Economy and Innovative Development of Russia.




Information

About National Technological Initiative

The National Technological Initiative is a long-term comprehensive program to ensure that in the next 15-20 years Russian companies will take the lead in new high-tech markets. NTI is meant to be a broad coalition, consisting of groups of like-minded people from technology companies, of leading universities and research centers, major business associations of Russia, development institutions, expert and professional communities, interested executive bodies. Currently, there are 12 working groups that are developing road maps for nine promising markets and three cross-market directions.
http://www.nti2035.ru

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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