On February 4, at the initiative of RVC, a meeting of the committee under the ASI Working Group was held as part of the execution of an order of the President of the Russian Federation, dedicated to the analysis of law enforcement practice in the field of venture investments and the consolidation of proposals from market participants to change the regulatory framework that determine permissible cases and the amount of non-return of venture investments.
The meeting was attended by experts from RVC, Rusnano, the Skolkovo Foundation, and representatives of the investment community. The meeting was organized by a committee created by the Working Group, which is engaged in the implementation of Order of the President of the Russian Federation No. PR-2199 of September 18, 2019. Under this document, the Government of the Russian Federation, together with the ASI, the Audit Chamber of the Russian Federation, the General Prosecutor's Office of the Russian Federation and development institutions, must, by June 1, 2020, propose amendments to the regulatory framework governing permissible cases and the amount of non-return of venture capital investments involving state capital in technological projects. The chairperson of the committee is Alexei Basov, Deputy General Director and Investment Director of RVC.
Opening the meeting, Alexey Basov noted that the committee’s participants were faced with a large-scale task — to offer the state a set of tools that would change the nature of venture capital market regulation, create a balanced control system that would take into account the interests of all industry representatives.
According to Irina Monina, Director of Legal Affairs of RVC, the existing mechanisms currently used for state support of venture activities need to be adjusted. There is no law-based definition of venture investment activity that takes into account its increased risk, which is compensated by the excess profitability of individual projects, while the others are unprofitable. Also, the state today is not ready to take entrepreneurial risks upon entering the venture market, along with private players. At the same time, the very concept of “Entrepreneurial Risk” should be clearly described in the legislation to avoid multiple interpretations.
As another factor hindering the development of the venture capital market, Irina Monina cited the lack of a unified methodology for assessing the effectiveness of venture projects with the participation of state capital.
The director for the development and planning department of the Skolkovo Foundation Sergey Izrailit, as a measure to improve the regulatory framework, proposed to clarify the budget code, according to which budget money spent on venture projects should be considered as incentive funds. In this case, the purpose of the funds will be changed, which will remove additional risks from investors and entrepreneurs.
In so doing, to exclude abuses on the part of dishonest managers, Sergei Izrailit proposed introducing a “hygienic minimum” — a set of measures that every manager must observe.
The Deputy General Director for Strategy of Rusnano JSC Alexey Kachay proposed to supplement the system of measures with the ability of market participants to defend their rights in the arbitration court.
Summing up the meeting, Alexey Basov instructed the Committee members to work out in detail and send their proposals by February 10, 2020.