Russian Venture Company
|Government Fund of Funds|
|Igor Agamirzian - CEO of RVC|
Russian Venture Company (Russian: Российская Венчурная Компания[romanization needed]) (OJSC) (RVC or Russian Venture Company) 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.
Russian Venture Company 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.
RVC’s authorized capital — RUB 30 011 320 700 (about US$ 983.2 mln.) — is 100% owned by the Federal Agency for State Property Management (Rosimushchestvo).
Board of Directors
Chairman of the Board of Directors: Oleg V. Fomichev — Deputy Minister of Economic Development of the Russian Federation
- Members of the Board of Directors
- Igor R. Agamirzian — CEO of RVC;
- Alexander A. Auzan — Dean of Faculty of Economics in Lomonosov Moscow State University;
- Gleb S. Nikitin — Deputy Minister of Industry and Trade of the Russian Federation;
- Boris G. Nuraliev — Director of 1C Company.
- Dmitri N. Peskov — Director of "Young Professionals" Agency for Strategic Initiatives;
- Alexander B. Povalko — Deputy Minister of Science and Education of the Russian Federation
- Sergey G. Polyakov — General Director of Foundation for Assistance to Small Innovative Enterprises (FASIE);
- Yuri A. Udaltsov — Deputy Chairman of the Management Board, Venture capital;
- The Management Board
- Igor Agamirzian — CEO of RVC;
- Egor Beketov — Director and Chairman of the Board of RVC Biopharmaceutical Investments (RVC Biofund);
- Andrey Vvedensky — Director of Investment Programs;
- Gulnara Bikkulova — Director, Technology Capital and Markets Access Department;
- Roman Kosyachkov — Deputy CEO, Vice Chairman of Management Board;
- Eugeny Kuznetsov — Director, Strategic Communications Department;
- Aleksandr Loktev — Director and the Chairman of the Board of RVC Infrastructure Investment Fund (RVC InfraFund);
- Alexander Potapov — Deputy CEO, Managing Director;
- Aleksey Teleshev — Director and the Chairman of the Board of RVC Seed Fund, Ltd. (FPI RVC).
RVC operates through private-public partnerships that take form of private VC funds: 49% of their capital is contributed by RVC—to be matched by 51% from private investors. RVC backed VC funds’ investment priorities focus on technologies from the Critical Technologies List approved by Russian President:
- security and counterterrorism;
- living systems (understood as biotechnologies, medical technologies and medical equipment);
- nanosystems and materials;
- IT systems;
- efficient nature management;
- transportation and aerospace systems;
- power generation and energy conservation.
RVC invests capital through VC funds that it creates in partnership with private investors. All in all, RVC has backed 21 funds (including 2 funds in under a foreign jurisdiction) to a total capitalization of RUB 29 bln i.e. about US$ 529 mln., its share amounting to RUB 18,3 bln i.e. about US$ 333 mln.
- VTB Venture Fund (RUB 3,061 mln i.e. about US$ 56 mln),
- Bioprocess Capital Ventures (RUB 3,000 mln i.e. about US$ 55 mln),
- Maxwell Biotech Venture Fund (RUB 3,061 mln i.e. about US$ 56 mln),
- Leader Innovations (RUB 3,000 mln i.e. about US$ 55 mln),
- Innovation Solutions (RUB 1,800 mln i.e. about US$ 33 mln),
- S-Group Ventures (RUB 1,800 mln i.e. about US$ 33 mln),
- New Technologies (RUB 612 mln i.e. about US$ 11 mln),
- RVC Seed Fund (RUB 2,000 mln i.e. about US$ 36 mln),
- RVC Infrastructure Investment Fund (RUB 2,000 mln i.e. about US$ 36 mln),
- RVC Biopharmaceutical Investment Fund (RUB 1,500 mln i.e. about US$ 27 mln),
- Civil Technologies, ltd (RUB 1,000 mln i.e. about US$ 18 mln),
- RBV Capital (RUB 2 070 mln i.e. about US$ 38 mln),
- Finematika Aerospace Fund (RUB 1 515 mln i.e. about US$ 28 mln)
- Da Vinci Pre-IPO Fund (RUB 3 788 mln i.e. about US$ 69 mln)
- Softline Seed Fund (RUB 34 mln i.e. about US$ 0,6 mln),
- High Technologies Seed Fund (RUB 33 mln i.e. about US$ 0,6 mln),
- Venture Fund Accelerator (RUB 33,4 mln i.e. about US$ 0,6 mln),
- Seed fund ACP (RUB 33,4 mln i.e. about US$ 0,6 mln),
- Seed Fund in living systems (RUB 33,4 mln i.e. about US$ 0,6 mln),
- RUSSIAN VENTURE CAPITAL I LP (Great Britain) (US$ 38 mln),
- RVC IVFRT LP (Great Britain) (US$ 40 mln).
As on 2015, RVC backed funds run a portfolio of 174 companies, invested capital totaling more than RUB 16,2 bln i.e. about US$ 295 mln.
RVC has signed 36 cooperation agreements with different Russian regions.
On October 22, 2009, RVC launched its RVC Seed Fund. Its mission is to invest into Russian innovation-based start-ups promising high growth opportunities both on Russian and foreign IT markets. This RUB 2 bln (i.e. about US$ 68 mln.) vehicle is assisted by a network of Venture Partners—special entities who have access to academic, technology and financial resources required for their activities.
An important area of RVC efforts is infrastructural development. RVC is struggling to create an environment in Russia that would favor innovation business. These include legislative initiatives, efforts to launch an ecosystem as a partner network of RVC, and international efforts involving both import of technologies and competencies from developed innovation markets and assistance to Russian companies on their way to global markets.
Since May 2009, RVC is headed by a new CEO—Igor Agamirzyan. His accomplishments include RVC Corporate Strategy and Business Plan 2010. As per these documents, RVC is planning this year to double its investments into innovation companies and increase its Seed Fund’s deals to RUB 440 mln, as well as to launch up to four new special purpose vehicles to a total capitalization of up to RUB 11 bln i.e. about US$ 374 mln.
In April 2010, the Board of Directors of RVC resolved to join an international venture capital investors’ alliance by establishing in the UK a specialized venture capital fund named RUSSIAN VENTURE CAPITAL I LP and invest the dollar equivalent of RUB 300 mln (as per Central Bank of Russia exchange rate - USD 10 mln) in BrightSource Energy Inc as a part of Round D totaling over USD 150 mln. The pool of BrightSource Energy Inc. investors includes Morgan Stanley, BlackRiver, Chevron Human Energy, BP Alternative Energy, StatOil HydroVentures, Draper Fisher Jurvetson and other world’s largest funds. Additionally, the Board of Directors of RVC resolved to establish a special-purpose VC fund to carry out transactions aimed at joining international later-stage funds. June 25, 2010, RUSSIAN VENTURE CAPITAL II LP was registered in the UK. It is a 100% RVC backed fund focused on joining leading international later-stage venture capital funds. This mechanism of joining international later-stage VC funds (consortiums, alliances) will provide RVC with access to the best VC practices to be disseminated on the Russian market. Additionally, RVC will get a firm foothold in this club of leading international funds, which in return, via RVC, will find their shortcuts to investing capital into Russian companies.
In the years to come, RVC is expected to play a pivotal role in the cause of developing Russian VC industry.