Russian Venture Company

Russian Venture Company (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 institution.

RVC Mission

The mission of RVC is to ensure faster development of an efficient and globally competitive innovative system through creating a self-sustained VC industry in synergy with other development institutions, engaging private venture capital, nurturing innovative entrepreneurship and technology business expertise, and mobilizing Russian human resources.

Authorized Capital

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 (Rosimuschestvo).

Board of Directors

The Board is composed of seven directors, including:

• Igor Agamirzian — CEO of RVC;
• Ruben Vardanian — Chairman of the Board of Directors, Troika Dialog (independent director);
• Sergey Guriev — Rector of Russian Economic School;
• Yigal Erlich — founder and Managing Partner of Yozma Group;
• Ivan Oskolkov — Director of Department, Ministry of Economic Development of Russia;
• Aleksey Sitnikov — Head of Department of International Cooperation, Foundation for Development of the Center of Research and Commercializing of New Technologies (Skolkovo Foundation);
• Yury Udaltsov — Director for Innovative Development, Member of the Board of Directors RUSNANO.

Management Board

• Igor Agamirzian — CEO of RVC;
• Andrey Vvedensky — Director of Programs and Projects Department;
• Nikolay Korolev — Chief Operating Officer;
• Evgeny Kuznetsov — Director of Development and Communications Department;
• Jan Ryazantsev — Director of Department of Investments and Expertise.

Priority Investment Areas

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 Funds

RVC invests capital through VC funds that it creates in partnership with private investors.
All in all, RVC has backed 12 funds (including 2 funds in under a foreign jurisdiction) to a total capitalization of RUB 26.1 bln i.e. about US$ 855 mln., its share amounting to RUB 16 bln i.e. about US$ 524 mln.

VTB Venture Fund (RUB 3,061 mln i.e. about US$ 100 mln),
Bioprocess Capital Ventures (RUB 3,000 mln i.e. about US$ 98 mln),
Maxwell Biotech Venture Fund (RUB 3,061 mln i.e. about US$ 100 mln),
Leader Innovations (RUB 3,000 mln i.e. about US$ 98 mln),
Tamir Fishman CiG Russian Fund (RUB 2,000 mln i.e. about US$ 66 mln),
S-Group Ventures (RUB 1,800 mln i.e. about US$ 60 mln),
New Technologies (RUB 3,061 mln i.e. about US$ 100 mln),
Russian Venture Company Seed Fund (RUB 2,000 mln i.e. about US$ 66 mln),
RVC Infrastructure Investment Fund (RUB 500 mln, to be increased to RUB 2,000 mln),
RVC Biopharmaceutical Investment Fund (RUB 500 mln, to be increased to RUB 1,500 mln),
RUSSIAN VENTURE CAPITAL I LP (Great Britain) (Rub 300 mln),
RUSSIAN VENTURE CAPITAL II LP (Great Britain) (RUB 1,200 mln).

As on December 2011, RVC backed funds run a portfolio of 101 companies, invested capital totaling RUB 9.1 bln i.e. about US$ 298 mln.

RVC has signed 26 cooperation agreements with different Russian regions.

An important area of RVC efforts is to create and support a special-purpose service infrastructure for VC market players, to increase transparency of investee funds and companies, to ensure enabling conditions in Russia for international investors and entrepreneurs and to optimize legislation affecting the development of innovative business. RVC is improving investment mechanisms to consolidate various industry-specific technology clusters in Russia.

RVC is pursuing international efforts in order to import modern technologies, knowledge and technology entrepreneurship know-how, as well as to assist Russian companies on their way to global markets.

Since May 2009, RVC is headed by a new CEO — Igor Agamirzian. His accomplishments include RVC Corporate Strategy, Position about the investment policy and Directions of work of the RVC for 2011-2013. As per these documents, RVC is planning to intensify investments in innovative companies and form a number of special-purpose funds.

In the years to come, RVC is expected to play a pivotal role in the cause of developing Russian VC industry.