RUSSIA:

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RUSSIA CHALLENGES AND OPPOTUNITIES
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INNOVATIONS
INFRASTRUCTURE
A special economic development institute
STIMULATING
Industrial Special Economic Zones Seaport
Special Economic Zones Tourist Special Economic
Zones
Technology and Development Special Economic
Zones Technology Parks
Russian Venture Company Regional Venture Funds
(over 20) Russian Nanotech Corporation
Russian Development Bank Russian Investment Fund
Concession Agreements
INVESTING

• WWW.RUSVENTURE.RU

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First venture funds

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New mission, new funding
RVC capital is being doubled to RUB 30
billion USD 1.25 billion RVC mission is being
expanded Finance new segments of innovation
companies Do hi-tech market development work

• WWW.RUSVENTURE.RU

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Investment scope expanded
Seed financing Range - RUB 1 to 10 million (USD
40K to 400K) Capital contribution, refundable (or
convertible) only if and after startup is venture
funded Later stage Several later stage funds may
be created in 2008-2009 Will operate in between
early stage funds and private equity funds (as
2nd and 3rd round investors) Will have a smaller
share of RVC money and less generous buyback
rights but less restrictive fund
terms Co-financing of venture funded
companies RVC can provide matching funds to deals
with Russian startups led by an eligible VC
(Russian or international) Same tech eligibility
criteria will apply

• WWW.RUSVENTURE.RU

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New high-tech market development functions
Russian Venture Company has been entitled by the
Government to perform new market development
functions as a organizer and finance
provider TRAINING AND EDUCATION Professional
training for entrepreneurs and other key
professions in innovation ecosystem MARKET
KNOWLEDGE Research of innovation-related markets
and industries in Russia and worldwide, to be
published for public use INTERNATIONAL Relations
with leading high tech clusters around the world
for the benefit of cooperation between startups,
tech corporations, research universities, venture
funds and tech ecosystems PROJECTS Other
innovation-related projects, based on capacity
and market need

• WWW.RUSVENTURE.RU

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Investment legislation reform
Examples US SEC Regulation D EU European
Prospectus Directive Possible uses Venture
funds Private equity funds Hedge funds Real
estate funds Asset planning Status State Duma
2nd reading passed Nov 6, 2007 Becomes a law
E 1H 2008

• Concept of a qualified investor
• Asset size
• Experience in securities markets
• Funds for qualified investors
• Can be commitment based (money is contributed to
  fund on demand)
• Right to keep reporting private
• Right to create an investment committee with the
  power to approve and veto deals
• Can charge increased fees
• Other exceptions defined in fund charters

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Innovation economy landscape

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Innovation economy landscape

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Service infrastructure potential

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Emerging venture capital boom
Europe, May, 25, 2007, 1239PM EST Russia's
Venture Capital Boom Tech startups in the
Federation are coming of age and starting to
attract serious VC funding from the U.S. and
Europe by Jennifer L. Schenker To encourage
such investments, the Russian government has set
up a trust that matches investments from private
venture capitalists. Already, it has agreed to
dispense nearly 100 million to three groups of
investors. Among them Asset Management, run by
legendary Silicon Valley venture capitalist
Franklin "Pitch" Johnson, which has secured 52
million in matching funds from the Russia
government for a new investment vehicle called
Bio-Process Capital Partners. The Russia-based
fund will scope out investment opportunities in
biotech. . To be sure, Russia still lags far
behind other global destinations for venture
capital. Since 1999, foreign venture capitalists
have invested only about 300 million in total in
the country's tech companies, says Yuri Ammosov,
the adviser to Russia's minister of economics,
who is overseeing the government's new investment
fund. That's less than venture capitalists
invested in China in the first quarter of this
year alone, according to figures from Ernst
Young. .

• WWW.RUSVENTURE.RU

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RUSSIA 2.0
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CONTACT
OJSC Russian venture company Office 42, 3-4
Kapranova lane, Moscow, 123242, Phone [phone]
01 04 Fax [phone] E-mail
info_at_rusventure.ru Web-site www.rusventure.ru

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