Russian Venture Company
|Government Fund of Funds|
|Alexander Povalko, CEO of RVC.|
RVC (Russian: Rossijskaja Venchurnaja Kompanija) (JSC) is a government fund of funds and a development institute of the Russian Federation, one of Russia's key tools in building its own national innovation system.
RVC was established by Russian Government on June 7, 2006 (Order No. 838-r). Its mission is to encourage Russia's own VC industry and boost capital of VC funds. RVC's role is that of a government fund of venture capital funds channeling public incentives to venture capital and financial support to the hi-tech sector, and of a Russian VC industry development institute.
Since 2015, RVC JSC has been defined as a project office for implementation of the National Technology Initiative (NTI)—the long-term strategy of the country's technological development, aimed at formation of new global markets by 2035.
Owners and executives
100% of the RVC's capital is owned by the Russian Federation represented by the Federal Agency for State Property Management of the Russian Federation (Rosimushchestvo). Authorized capital of RVC JSC is 30,011,320,700 rubles (about US$463,555 mln).
- Members of the Board of Directors
Chairman of the Board of Directors: Oleg V. Fomichev — Deputy Minister of Economic Development of the Russian Federation
- Alexander A. Auzan — Dean of Faculty of Economics in Lomonosov Moscow State University;
- Vasily M. Belov — Senior Vice-President, Innovations development of Skolkovo Foundation;
- Alexandr Galitskiy — Managing Partner of Almaz Capital Partners venture found;
- Boris G. Nuraliev — Director of 1C Company;
- Dmitri N. Peskov — Director of "Young Professionals" Agency for Strategic Initiatives;
- Alexander B. Povalko — CEO of RVC;
- Sergey G. Polyakov — General Director of Foundation for Assistance to Small Innovative Enterprises (FASIE);
- Yuri A. Udaltsov — Deputy Chairman of the Executive Board, RUSNANO Management Company LLC.
- The Management Board
The number of Board members cannot be less than five people.
- Alexander Povalko — CEO of RVC;
- Sergey Abdykerov — Operational Director of the National Technology Initiative project office;
- Mikhail Antonov — Deputy CEO, Director for Innovative Infrastructure Development;
- Mikhail Fedotov — Deputy CEO, Financial Director;
- Anna Romanenko — Deputy CEO, Managing Director;
- Alexey Basov — Deputy General Director — Investment Director of RVC JSC;
- Kumanina Ekaterina — Director for Strategic Communications of RVC JSC;
- Elena Mikheeva — Director of Risk Analysis and Internal Control Department at RVC JSC, a member of the Management Board of RVC JSC.
Government along with Skolkovo Fund, Rusnano JSC and Vnesheconombank refer to RVC as Development Institute of Russian Federation, in other words "an vehicle to resolve state objectives in market environment" RVC's role is to be a state fund of funds — founder and financial member of venture capital funds, which invest in innovation projects and activities on developing innovation ecosystem via specialized programs and inter-program projects.
Investment activity of RVC is aimed at involving private Russian and foreign players into innovative segments of Russian economy and development of new investment instruments of the national venture capital market. This activity is carried out through establishment of funds based on public-private partnership. RVC is focused on knowledge-intensive high-risk industrial sectors with low presence of private capital, which are essential for the country's balanced innovative development and for promising interdisciplinary segments. Another priority of RVC's investment activity is creation of RVC seed and pre-seed funds.
As on 2016, RVC backed funds run a portfolio of 202 companies, invested capital totaling more than RUB 17,6 bln. i.e. about US$294 mln.
RVC operates through private-public partnerships that take form of private VC funds.
The total number of RVC funds has reached twenty two (including two funds in foreign jurisdictions), with their total target size of RUB 33,8 bln. i.e. about US$518 mln. The share of RVC is RUB 20.6 bln. i.e. about US$322 mln. The first funds were set up in 2007-2008 as closed-end investment funds (CEIF), later as LLCs; now the new funds are being established in the form called the investment partnership.
- Subsidiary funds
- RVC Seed Fund (RUB 1,982 mn.)
- Civil Technology (RUB 1,000 mn)
- RVC Infrafund (RUB 2,000 mn)
- RVC Biofund (RUB 1,500 mn)
- Funds in Foreign Jurisdictions
- Funds established in the form of Closed-End Funds
- Bioprocess Capital Ventures (RUB 3,000 mn)
- Maxwell Biotech Venture Fund (RUB 1,224,4 mn)
- Leader Innovations Venture Fund (RUB 3,000 mn)
- S-Group Ventures Venture Fund (RUB 1,800 mn)
- VTB – Venture Fund (RUB 3,061 mn)
- Funds established in the form of Investment Partnership Agreement (IPA)
- Industry funds
- RusBio Ventures IPA (RBV Capital) (RUB 2,070 mn)
- Finematika Aerospace Fund IPA (RUB 1,515 mn)
- Da Vinci Pre-IPO Fund IPA (RUB 3,788.7 mn)
- North Energy Fund I Seed IPA (RUB 923.3 mn)
- Phystech Ventures II IPA (RUB 900 mn)
- Russian-Belorussian Venture Investment Fund IPA
- Venture Fund of Skolkovo — Industrial I IPA (RUB up to 3 bln)
- Venture Fund of Skolkovo — IT I IPA (RUB up to 3 bln)
- Softline Seed Fund IPA (RUB 136 mn)
- High-Tech Seed Fund IPA (RUB 133,2 mn)
- Venture Accelerator Fund IPA (RUB 33,4 mn)
- ACP Seed Fund IPA (RUB 133,4 mn)
- Life Sciences Seed Fund IPA (RUB 33,4 mn)
- Seed fund of Tomsk State University IPA (RUB 33,4 mn)
Development of innovation ecosystem
Along with investing to venture funds, RVC is playing a tremendous organization role in developing the innovation ecosystem in Russia. Its activity programs include:
- Investor Development Program — educational events for investors, business angels, managers of venture funds, corporation managers.
- The key program results of 2014 included 315 business angels trained through special educational programs; 500 entrepreneurs and investors from 10 regions of Russia participating in Talk2VC program for communication between investors and entrepreneurs; 98 specialists and managers of 43 venture funds trained in ProVC investor program, the first Russian education program seed and pre-seed funds; 34 corporations participating in the education program on corporate venture investments.
- Russian Venture Capital, along with the Russian National Business Angels Association, conduct research of business angel investment market in Russia. According to Russian Angel Monitor, extensive research presented by National Business Angels Association (NBAA) with support of RVC and Firrma, one of 2016 trends on the business angel investment market in Russia was growth in the number of private investors by minimum 25–30%. RVC and NBAA compile annual ratings of business angels in Russia. According to their study, in 2015, the title of Russia’s most active business angel was given to Alexander Borodich. In 2016, Alexander Rumyantsev was recognized the most active angel investor, with Borodich moving to the second position.
- Innovation Ecosystem Development Program – educational and infrastructural activities and projects with universities initiating technology transfer process; educational activities for technology entrepreneurs; RVC backed launch of Academic course “The essentials of innovation economics" in several universities.
- At 2014, over 1,000 people including university principals and corporate R&D directors were involved into the Leaders of Change Community; 1,835 entrepreneurs from 32 regions of Russia received educational courses on start-up management and fundraising; 734 technology companies were provided by free consulting services; RVC also supported 23 training and acceleration programs which were attended by 1,800 people
- Program for Globalisation of Russian Innovation Ecosystem – supporting marketing and promotional activities of Russian high-tech companies upon entering foreign markets.
- Among the key points of 2014 annual report there are follows: the export revenue for innovative products made by portfolio companies of RVC-funded funds is $27mln; new entries to foreign markets were made with help and assistance of RVC by 50 Russian high-tech companies; 10 analytical research reports are issued on biotechnology, IT and microelectronics foreign markets to help access for Russian small and medium companies.
- Innovation Promotion Program – acceleration of media infrastructure facilities for media which popularize science and technology entrepreneurship.
- During 2014, various competitions, awards and ratings of innovation projects were organized and supported by RVC with 6,714 total number of teams taking part; 23 media focused on covering the subject of innovative entrepreneurship and venture business have received support; 22 million audience as the resulting total media coverage of program.
- Development of Intellectual Property Institute – this program develops together with the Ministry of Economic Development of Russian Federation, the Ministry of Education and Science of Russian Federation and other federal bodies of executive power.
- Key projects are: developing practices of IP ganmanagement in companies, scientific and educational institutions, creating an institution of technological brokerage; analysing cases of judicial practice, preparing proposals, schemes and models of investment in IP and IP protection. In 2014, in particular, the "Guide to Intellectual Property" compiled by experts of the British Venture Capital Association was published with RVC's backing and "International practice of support tools for patenting" manual was created and published by RVC.
- Inter-program innovation ecosystem development projects
- GenerationS, a federal accelerator for technological start-ups
- GenerationS has been held since 2013 with the support of Russian corporations, development institutions, and representatives of venture infrastructure. Since 2015, GenerationS structure includes 7 corporate and industry accelerators (tracks) which are held in close cooperation with large Russian corporations. 2566 projects participated in the entering contest, 141 projects are selected for the acceleration. The superfinal pitch takes place on 24 November 2015 at Moscow Corporate Venture Summit.
- Open Innovation – Moscow International Forum of Innovative Development
- The Open Innovation Forum, a global discussion platform, takes place yearly in Moscow since 2012. In 2014 the Forum was attended by 16,000 guests from 72 countries, and 700 participating startups from 19 countries participated in the exhibitions. In 2015 the event got its new shape of Forum and Technology Show with 12,000 attenders. RVC is a co-organizer of the Forum together with RF Government, Moscow Government, Ministry of Economic Development and several state development institutions.
- TechUspekh, national rating of fast-growing mid-size technology companies
- The rating (TechUspekh for Russian Tech Success, in English the name in use is TechUp) was first organized by RVC in partnership with the Association of Innovative Regions of Russia (AIRR) in 2012 with the support of Rusnano and the Foundation for Assistance to Development of Small Research and Technology Enterprises. The current rating methodology was developed by PwC In 2014 250 companies applied to participate; 110 companies were selected according to eligibility criteria. In 2015 60 companies selected out of 250 applicants were announced at the Open Innovation Forum on October 28. The average revenue of a TOP-50 member has raised for 35% comparing to 2014, while their summarized innovation expenses grew up 19%.
- Russian Venture Company
- "The Management Board". RVC.ru.
- "Number of transactions with participation of business angels grew by 41% in 2016". www.rvc.ru. Retrieved 2017-08-17.
- Russia Russian Angel Monitor 2016. http://www.rvc.ru/upload/iblock/301/RAM_16_5.pdf
- "В 2016 году рынок бизнес-ангельских инвестиций вырос на 30%". www.rvc.ru. Retrieved 2017-08-17.
- "В 2016 году рынок бизнес-ангельских инвестиций вырос на 30%". www.rvc.ru. Retrieved 2017-08-17.
- Open Innovations – Forum and Technology Show
- TechUp - Russia's fast-growing high-tech companies national rating