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EBRD in partnership with Russia’s VTB group in venture capital fund
612 million rouble investment aims to help commercialise Russia’s high-tech potential
The European Bank for Reconstruction and Development joins a 3-billion rouble (€88 million) venture capital fund launched by the VTB group, Russia’s second biggest bank, in order to stimulate the commercial development of advanced and innovative technologies.
EBRD President Jean Lemierre said investing in this fund, which will target private sector initiatives, once again demonstrated the Bank’s commitment to the diversification of the Russian economy and the development of the country’s considerable high-tech potential.
The EBRD, which will invest 612 million roubles, is taking a 20 percent stake in VTB Venture Capital Fund. Apart from capital, the EBRD is contributing its unparalleled expertise in investing in Russian private equity.
The Russian Venture Company, a state owned corporation, is a co-sponsor of the fund along with VTB. The fund will be managed by VTB Asset Management in cooperation with DFJ (Draper Fisher Jurvetson), which will contribute experience in managing venture capital funds.
The driving force behind the launch of the government-backed venture capital programme is the perception that technology companies in Russia have until now not had access to the funding needed to enable them to commercialise their inventions and ideas.
The fund’ strategy will be to invest between $1 million and $10 million in each company, usually in exchange for a significant minority stake. It aims to invest in companies at various stages of development, providing seed capital for start-ups but also for mature projects which need to expand.
The fund’s initial investment targets will include information technologies and internet media, semiconductors and biotechnology, medical and laser equipment, nano technologies and composite materials, as well as other promising, value-added areas that can increase the global competitiveness of Russia’s high-tech sector.
Russia’s leading research institutes are to act as scientific advisors to the fund.
The EBRD’s commitment is subject to satisfactory completion of the relevant documentation.
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