National%20Innovation%20Fund%20Of%20Kazakhstan

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National Innovation Fund Of Kazakhstan
Industrial-innovative strategy of Kazakhstan new
opportunities for the US business
September 9, 2005 San Diego
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National Innovation Fund
Republic of Kazakhstan

• Established May 30, 2003
• Charter capital 150 million
• Shareholder Government of Kazakhstan
  (100)

• Associate member of the European Private Equity
  and Venture Capital Association and Singapore
  Venture Funds Association

www.nif.kz
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National Innovation Fund
Republic of Kazakhstan
Our mission

• Increase innovative activity in ??zakhstan
• Support and promote development of high
  technologies

How we achieve our objectives

• We
• Create venture funds together with domestic and
  foreign investors
• Finance promising applied RD
• Make equity investments in innovation projects
  and infrastructure for innovations
• Establish technology business incubators and
  centers of excellence

www.nif.kz
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National Innovation Fund
Republic of Kazakhstan
Development Institutions in Kazakhstan

• Kazakhstan Investment Fund
• Kazakhstan Development Bank
• Export Insurance Corporation
• National Innovation Fund
• Center for Marketing and
• Analytical Research
• Center for Engineering and Transfer of
• Technology
• Kazakhstan Contract Agency

Corporate Investors
Research Institutes, centers of excellence
Universities, laboratories, IC2, MIT, CRDF
International Financial Organizations
Kazakhstan Foreign Governments
National Academy of Science
www.nif.kz
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National Innovation Fund
Republic of Kazakhstan
Investment strategy of the Fund
Types of investments
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35
10
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Venture Funds
Innovation projects
Infrastructure conducive to innovation
Applied research and development
10 mln
5 mln
0.3 mln
0.25 mln
Investment limits
www.nif.kz
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National Innovation Fund
Republic of Kazakhstan
Priorities of the Fund

• Information technology
• Alternative sources of energy
• Biotechnologies, pharmaceuticals
• New materials and nanotechnology
• Technologies for hydrocarbon industries and
  related services

www.nif.kz
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National Innovation Fund
Republic of Kazakhstan
Principles of investment in venture funds

• Investment policy is in line with the Fund
  objectives
• The Fund is a minority shareholder (up to 49)
• Professional management team
• New technology or advanced existing
  product/technology
• Project is commercially viable
• Minority interest of the Fund (up to 49 of
  chartered capital)
• Well defined time-horizon for investment
• Staged financing
• Qualified management

Principles of investments in innovation projects
www.nif.kz
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National Innovation Fund
Republic of Kazakhstan
The Funds Investments in Venture Funds
Our current portfolio

• 1st Stage 2nd Stage Total Capital
• Areket VC Fund 5 mln. 10 mln. 21 mln.
• Advant VC Fund 5 mln. 10 mln. 21 mln.
• Centras VC Fund 5 mln. 10 mln. 21 mln.
• CASEF Private Equity 2 mln 6.6
  mln. 17.6mln.
• Wellington Partners 10 mln. 180mln.
• Halyk Private Equity 20 mln.
• Kazakhstan-Baltic VC Fund 20-50 mln.
• Kazakhstan-Asian Technology Fund 20-50 mln.
• Kazakhstan Technology VC Fund 20 mln.

founder
Our plans
joined partner
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National Innovation Fund
Republic of Kazakhstan
The NIF in the world venture funds system
European Venture Funds Association
CASEF (in cooperation with IFC, SECO, SEAF)
NIF
Wellington III Tech. Fund L.P. (Germany)
Singapore Association of Venture Funds
www.nif.kz
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National Innovation Fund
Republic of Kazakhstan
The Funds Investments in innovation projects

• Telecommunication
• Space engineering
• Pharmaceutical industry
• Mining/gas service industries

Our current portfolio 5 projects for 72.5 mln.
in
Our plans 16 projects for 36 mln. in

• Software development
• Hi-Tech
• IT technologies
• Telecommunication
• Pharmaceutical/bio-technologies

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National Innovation Fund
Republic of Kazakhstan
Perspective areas for cooperation Wind power
generation industry

• Kazakhstans wind energy potential capacity -
  1.8bln. kW-hr
• Pilot project on construction of the first wind
  power station in the Jungar
  Gate in the South-East of Kazakhstan
• Max. capacity - 5.5mWt.
• Total cost of the pilot project - 5.5 mln.
• UNDP - 1.0 mln.
• NIF - 2.7mln.
• US/EUN investors - 1.8 mil
• Second stage - 170.0mln.
• The winner gets a contract for guaranteed
  purchase of electric power for a max. price of
  3.5 cents/KW/hr.

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National Innovation Fund
Republic of Kazakhstan
Perspective areas for cooperation The Methane
Project (Karaganda, Central Kazakhstan)
Operator Schlumberger

STAGES 1 stage (pilot phase) drilling of 6
pilot wells Total Cost 13-20 mln, duration
12-18 months
Fund 35 (7 mln) Petrol Total Establishment -
20 (4 mln) US/EUN investors - 45 (9 mln).
2 stage (commercial phase) drilling and
exploration of 110 commercial wells Total Cost
180-220 mln, duration 25 years
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National Innovation Fund
Republic of Kazakhstan
Perspective areas for cooperation
Pharmaceutical Industry

• Kazakhstan pharmaceutical market - 518 mln
• Share of domestic pharmaceutical industry 9
• Production of antibiotics in Stepnogorsk, Central
  Kazakhstan.
• Total project cost - 45-50 mln.
• Start of industrial production - 2008 year
• Other perspective projects includes
• - Production of anti tuberculosis medications
  20 mln
• - Production of bio-degradable packaging up
  to 40 mln
• - Production of insulin up to 150 mln.

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National Innovation Fund
Republic of Kazakhstan
Perspective areas for cooperation
IT City Alatau

• Total area 340 hectares
• Free economic zone
• Includes 4 clusters
• 43 ongoing projects with the leading high tech
  companies

- Manufacturing - Training - Apartments
leisure - Commerce
We offer US companies partnership in managing
the IT city and developing high tech projects
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National Innovation Fund
Republic of Kazakhstan
Collaboration with the US

• Joined RD program with CRDF
• Center of Excellence with the World Bank
• Two business incubators with the IC2 at Austin,
  Texas
• Flagship Venture Funds 2004, LP

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Thank you
26A, Abay avenue, Almaty, 050013 Republic of
Kazakhstan Tel [phone] Fax 011-7-
3272 599839 E-mail info_at_nif.kz Web-site
www.nif.kz