Rvc brochure 2014 eng by RVC Marketing

Contents

DISCOVERING FUTURE

RVC was established by the Government of the Russian Federation in 2006 as a fund of venture capital funds with the registered capital of RUB 30bn. By 2014, RVC backed 15 venture funds which, in turn, invested in more than 150 innovation companies. As a governmental development institute, RVC is focused on fostering global competitiveness of Russia’s innovation economy through creation of ultimately favorable tech entrepreneur-friendly environment.

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DISCOVERING FUTURE

RVC is a governmental fund of funds and a development institute of the Russian Federation, one of Russia's key tools in building its own national innovation system. From day one RVC saw its key objective in addressing

venture investment market, including angel investment

two paramount tasks: enhancement of venture capital

in startups. Besides, RVC works to raise public awareness

environment fostering innovation and entrepreneurship

about innovation activities aiming to encourage young

in Russia and establishment of relevant infrastructure.

people to make informed choice towards science

Today, RVC promotes a range of supports to tech

and research and technological entrepreneurship as

startups, thus compensating high risks and insufficient

an attractive career path. Besides, RVC implements

interest on the part of private capital at this stage. RVC

projects targeted at improving professionalism of all

experts are experienced in grasping new opportunities

innovation system stakeholders and harmonizing regional

emerging on the Russian and global markets.

infrastructure. As a governmental development institute

The Company places high emphasis on streamlining

RVC is strongly involved in shaping innovation economy

tools that drive the development of the Russian

and supports its participants on a non-competitive basis. 3 Contents

DISCOVERING FUTURE

Team Professional background of the Company’s lead team members include such areas as science, education, key economy industries, experience with public authorities

Board of Directors Anna G. Belova, Chairman of the Board of Directors, Professor, Deputy Dean of the Graduate School of Business of the Higher School of Economics

and non-for-profit organizations, big corporations and

Igor R. Agamirzian

innovative entrepreneurship.

(Professional Trustee), member of the Strategic Planning Committee, CEO, Chairman of the Management Board of RVC

RVC Board of Directors and the Board of Management bring together experts in business, market operations, economic processes and governmental mechanisms. The Company top managers have extensive experience in business building, analysis of high-potential economy sectors, and project team staffing.

Alexander A. Auzan (Independent Director), Chairman of the Strategic Planning Committee

Igor A. Drozdov (Professional Trustee), Senior Vice President for Legal and Administrative Affairs of Skolkovo Foundation

Oleg V. Fomichev, member of the Strategic Planning Committee, Deputy Minister of Economic Development of the Russian Federation

Boris G. Nuraliev (Independent Director), Chairman of Personnel and Compensation Committee, CEO of 1C

Sergey G. Polyakov (Professional Trustee), CEO of Foundation for Assistance to Small Innovative Enterprises (FASIE)

Mikhail B. Rogachev (Professional Trustee), Head of Russian Foundation for Technological Development

Yuri A. Udaltsov (Professional Trustee), Chairman of the Audit and Integrity Committee, Chairman of the Board of ROSNANO, Head of Venture Capital Division

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For more detailed bios of BoD members, please refer to RVC website at http://www.rusventure.ru/en/ company/directors

DISCOVERING FUTURE

In 2010, to discuss relevant market development issues and internal strategic plans, the Company set up an Advisory Board coordinated by Alexander Galitsky, cofounder of Almaz Capital Partners. Starting June 2014, the Advisory Board comprises not only innovation business professionals, but also science, production, education and development institutions experts with vast experience in innovations and venture market.

Mikhail V. Kozlov, Head of Innovations, RusHydro

Mikhail P. Krasnov, Founder of Verysell, member of the Board of Management of AP KIT

Nikolay Y. Lebedev, President, Transas Group

Albina I. Nikkonen, Executive Director, RVCA

Andrey V. Sharonov, Dean of Skolkovo School of Management

Advisory Board members in 2014 Sergey M. Belousov,

Mark M. Shmulevich, Chief Strategic and Operations Officer, Acronis

David E. Yan, Chairman of the Board of Directors, ABBYY

Senior Partner at Runa Capital

Alexey I. Borovkov,

Marina V. Yanina, Vice-President for Corporate Relations, Yandex

Vice-Principal for High-Potential Projects at St. Petersburg State University

Alexander V. Galitsky,

Andrey Y. Zotov, Managing Partner, ADJ Consulting

Managing Partner, Almaz Capital Partners

Leonid M. Gochbeg, First Vice-Principal, Higher School of Economics

Mikael Alemu Gorsky, member of BoD, Olympus Business Publishing House

Gherman V. Kaplun, Head of Strategic Development, TMT Investments PLC

Mikhail P. Kirpichnikov, Dean of Biology Department of Moscow State University

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DISCOVERING FUTURE

Management Board Igor R. Agamirzian,

Eugeny B. Kuznetsov,

CEO, Chairman of the Management Board

Deputy CEO, Head of Project Office

Ruslan M. Akhmetov,

Alexander E. Potapov,

Head of Investments

Deputy CEO, Chief Operations Officer

Gulnara Z. Bikkulova,

Irina V. Teplitskaya,

Head of Investment Markets

CFO

Roman N. Kosyachkov,

Andrey V. Vvedensky,

Deputy CEO, Managing Director, Deputy Chairman of the Management Board

Head of Investment Programs

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For more detailed bios of Management Board members, please refer to RVC website at http://www.rusventure.ru/en/ company/structure/

Contents

RVC’s international program today is first and foremost geared at development and promotion of Russian innovation products in Asian markets through establishment of global network of RVC agents, interaction with trade representations in different countries in order to introduce Russian companies to foreign markets, cooperation with Russian and foreign colleges and establishment of joint technology sharing centers.

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I N T E R N AT I O N A L C O N N E CT I O N S

In 2013, with the assistance of RVC more than 4,000 visitors attended professional events focusing on foreign markets. Today, 24 companies are in the process of signing international deals. Total export earnings of RVC-backed funds’ portfolio companies amounted to USD 29m in 2013. Originally, development of the Russian innovation

RVC operates at the western markets through its regional

ecosystem was strongly impacted by Europe and the USA.

representatives. Their objectives are the following:

Western markets remain highly important for Russia,

supporting partner colleges and portfolio companies,

to a large extent as a source of technologies and

as well as participants of Techuspekh, national economic

competencies.

rating of fast-growing high-tech companies through

Today, however, priorities have shifted towards Asia.

backing their export and helping to find investors and

South-Asian markets have potential, primarily in terms

business partners.

of integration of Russian companies into global value

RVC regional representatives adapt businesses of

chains. Africa and the Middle East are no less significant

companies selected for backing to the specific region’s

in this context. But there are certain challenges here

market. This includes analysis of business indicators,

as Russian companies are much less experienced

product portfolio, marketing materials, development

in the field, and existing market mechanisms are not

of market entry strategy, customer and peer profiling;

always transparent.

companies are assisted with tendering and contract

In the past two years, RVC has systematized experiences

signing.

of cooperation between Russian innovation companies

A company usually gets to know the market through

and western players. RVC is currently closely studying

participation in an industry event, which results

the mechanisms driving Asian innovation markets with

in meeting potential counterparties (investors,

a view to integrate national innovation exporters.

customers, partners, consultants). The role of RVC 9 Contents

I N T E R N AT I O N A L C O N N E CT I O N S

representative here is pivotal. The number of deals

networks of personal business contacts of RVC agents

signed between backed companies and external partners

and team members.

is a clear proof of success of international programs.

Furthermore, RVC works in close contact with

Since 2012, RVC has a representation in the USA (RVC

the Ministry for Economic Development of Russia to

USA, Inc.) with offices in Boston, MA, and Menlo-Park,

coordinate development of initiatives offering non-

CA. Originally, their first task was to find investors,

financial export support to companies-participants

while today the offices are to a large extent focused

of technology platforms* and sectoral business

on promoting Russian innovation entrepreneurs in the US

associations. The initiatives are also aimed to train

market, enhance export of their technologies, products

company staff in foreign economic operations, analyze

and services.

attractive distribution market segments, develop

Since 2013, RVC has its representatives in Israel and

specialized product catalogues and design marketing

Singapore which are the gateways to the markets of

materials.

Africa, the Middle East and South-East Asia. Singapore is a benchmark and has strong business ties with other Eastern Asia countries, that’s why RVC has chosen it as a venue for its regular educational events involving representatives from colleges and venture funds aimed to share experiences and build new cooperation mechanisms. Strengthening business ties with China and South Korea is another focus of RVC activities. These markets are thoroughly studied, connections are built with the most promising players of the innovation and venture business. In European markets, these tasks are addressed through cooperation with Russian trade representations and via

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* Technology platform is an industry-led partnership bringing together stakeholders from public authorities, business, science and education sharing common vision of scientific and technological development and approach to development of relevant technologies. Russia now has more than 30 platforms in top sectors encompassing broad range of stakeholders (top research and educational organizations, big, medium and small businesses, public associations). Total number of participants of Russian technology platforms exceeds 3,000.

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MARKET DEVELOPMENT

RVC’s market development initiatives cover the whole innovation economy value chain starting from idea conceiving by teams of scientists and individual entrepreneurs to support and promotion of innovation products in the domestic and global markets. In 2013, the total volume of deals in the Russian venture ecosystem grew 46% vs 2012 to USD 2,890m (with account of grants, investment in venture infrastructure, as well as deals resulting in investor exit).

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MARKET DEVELOPMENT

RVC operates in line with approved 3-year targets and annual business plans. In 2013, targets for 2014-2016 were approved. The objective of shaping competitiveness of Russian innovation economy drives the concrete forms of RVC activities. To address existing issues in innovation and venture capital ecosystem and ensure its effective performance, the Company has developed and uses

a new opportunities that have already emerged or may emerge in the Russian and global markets; a advising and supporting Russian venture capital investors, namely, business angels; a supporting globalization of Russian venture capital

a number of specific tools—initiatives aimed to boost

industry—RVC acts as a guide to international

development of national venture entrepreneurship.

investors in Russia fostering integration of Russian

Such initiatives cover all aspects of activities in the field

innovation entrepreneurs, products and services into

starting from growth of venture capital volumes and

global value chains;

integration into global technological value chains to establishment of market infrastructure and understanding perception of its role by the community.

a regional development of venture capital investments and technological entrepreneurship; a improving professionalism of venture capital ecosystem participants;

Market development tools introduced by RVC are

a promoting and popularizing innovations.

targeted at: Company regulations, as well as 2014-2016 targets, can be seen at http://www.rusventure.ru/en/ company/legal_basis/

a industrial sectors which, for some reason, lack private capital, but are important for the national well-balanced innovation development (biotechnology, medical science, energy and energy efficiency, intellectual systems etc); a tech startup lacking venture capital and relevant tools; 13 Contents

MARKET DEVELOPMENT

RVC expert workshops There’s never enough high-quality experts in the market.

Innovation and R&D Directors Club (iR&Dclub)

Venture capital industry is no exception. That is why

iR&Dclub is a professional community for top managers

RVC hosts expert workshops on venture business

of large Russian corporations in charge of innovation

issues, innovation economy, development processes

development and a platform to establish contacts,

and modernization, aiming to improve qualification and

exchange best practices, formulate priorities and discuss

capacity of experts and develop horizontal ties within

strategies. The Club representatives are the members

the expert community.

of interdepartmental committees of the Presidential

RVC expert workshops is a platform for presenting and

Economy Modernization Council, as well as of the working

discussing findings of research into venture technological

groups established to coordinate developmental institutes.

business, technological trends and processes.

iR&Dclub was founded in 2011 on the basis of Innovation

Workshops are held on a regular basis since

Management Institute of the Higher School of Economics

September 2011, a total of 11 hosted over the first three

under the auspices of RVC, Ministry for Economic

years. Experts have discussed a newly emerged “big

Development, Ministry for Education and Science, as well

data” industry, examples of unconventional innovation

as with participation of the Higher School of Economics

system in global practice, modern engineering,

and VEB Innovations foundation.

technology brokering, search for science agglomerations

The Club’s objective is to foster development of Innovation

in Russia and many other issues.

and R&D directors community, strengthen its weight and

Workshops are attended by leading Russian and

influence and address inter-industry tasks, including

foreign VC and technology experts, including members

innovation and R&D strategy and tools, financing R&D

of the Russian Academy of Sciences, high-ranking

and innovations, staffing and training. Starting 2012,

governmental officials (including Deputy Ministers),

the Club in cooperation with RVC implements an initiative

renowned venture capital investors and entrepreneurs,

geared to stimulate development of corporate venture

top managers of big corporations and development

investment market. The Club initiates specialized

institutions of Russia.

surveys, working meetings and panel discussions.

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For workshop materials, including videos, please refer to News page of RVC website at http://www.rusventure.ru/en/ pressservice/news/

Visit the Club’s website at http://irdclub.ru/about-ird-club

MARKET DEVELOPMENT

iR&Dclub is one of the platforms for building dialogue between Russian business community and developmental For more information on Pro VC program, please see RVCA website at http://www.rvca.ru/eng/

institutes. The Club operates via regular thematic sessions, meetings with governmental officials, domestic and foreign R&D and innovation management experts. Besides, the Club’s activities in specific areas have their own logic and mechanism that to a large extent have a structure of a project: task set up, adjustment of a task wording, development of technical specification for task solution, results reporting to decision-makers, situation follow up and setting up a new task. In 2013, the Club supported establishment of 17 pilot teams of Russian corporations experts that will endeavor to create corporate venture funds (CVF). The teams have already held four consulting sessions on theoretical and practical aspects of CVF creation.

Advanced training program for managers of private/public and private seed and pre-seed investment funds Pro VC Innovation is a highly specific area requiring specific competence. Pro VC is an educational project sponsored by RVC and RVCA (Russian Venture Capital Association) as a response to demand from business community. Pro VC consists of three sessions held during the year in Moscow, Novosibirsk and Irkutsk. It is aimed to optimize deal approval system, streamline fund’s relations with regulatory authorities and ensure regular opinion exchange between managers of seed and pre-seed funds in order to share best practices and improve performance. Training is done through practical workshops. The trainees discuss established practices, get together for panel discussions on most relevant venture funds issues. Sessions are attended by experts: representatives of relevant Ministries and Departments, partners and investment officers of private and publicprivate funds having experience in international deals and understanding Russian business model specifics. They share about venture business, investment deals structure, identification of projects, primary selection,

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MARKET DEVELOPMENT

shareholders participation in company management.

In 2014, advance training program was completed

Besides, the workshops discussions include company

by 20 managers of the largest venture funds

valuation methods, sectoral business models, exit

from 10 regions of Russia.

strategies and investment fund’s back-office functions.

In 2013, 250 business angels were involved in RVC projects. Deals made with participation of angel investors grew 70%. 60 corporations have completed internships and practice sharing programs in corporate venture investment. 7 new corporate venture funds were launched. 580 professional participants attended events on venture capital investment market issues. The events were attended by a total of 5,000 visitors, 600 of them investors.

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MARKET DEVELOPMENT

RVC places strong emphasis on creation and development of the investor communication platforms. For private investors (business angels) it is very important to meet with people they are on the same page with to share practices and new ideas—this is where networking drives establishment of professional teams. RVC hosts specialized events for business angels and mentors, develops platforms that bring together investors and entrepreneurs, implements educational projects and offers methodological guidance for private investors. Ready for Equity To read more about Ready for Equity, please refer to Become an Angel page at NBAA website at http://beanangel.rusangels.ru/

According to the National Business Angels Association, thousands of early stage investment deals are closed in Russia annually. Most of such deals involve nonprofessional private investors (business angels) and startup companies in search of equity finance, some of them implementing innovation high-tech projects. Level of investment readiness, preparation and structuring of early stage venture deals contributes to success of further constructive cooperation between an entrepreneur and investor. Ready for Equity is a special licensed program aimed to prepare business angels and entrepreneurs for private equity investment deals. The program was developed by the National Business Angels Association and Atom

Partners under the auspices of RVC and Center for Innovation Development of Moscow, and was tested and adapted to the Russian early stage venture investment market, being Russia’s first licensed training program. Russian Ready for Equity program was based on the results of two projects, primarily European. Program testing in groups of Russian business angels and entrepreneurs has proven that the initiative meets the market needs and helps to fill in the existing gaps. Especially useful it appeared for the beginners. The program is delivered by experienced trainers and invited speakers. Issues considered at the training sessions include financing gap in small businesses, angel investment specifics, risks faced by business angels, investment criteria that need to be taken into account, syndication, and investment process. Besides, 17 Contents

MARKET DEVELOPMENT

the program advises on support one can get from Russian associations and teaches how to become a business angel; how to evaluate a company and how Russian deal structuring practice works, what are growth strategies, how can a company be influenced and how to exit an investment. The theoretical part is supported by practical advice and tips allowing to better understand venture market specifics. Participation in the program offers great opportunity for trainers and invited speakers to meet new people in the industry and opens new partnership horizons for participants themselves.

Russian Startup Rating (RSR) By far not all startups succeed in getting investment on time, at the early stage, and draw attention of relevant businessmen. This is especially challenging for real sectors: microelectronics, biotechnology, development of new materials, industrial and consumer equipment. Russian Startup Rating (RSR) allows to address these issues. The platform was established by Greenfield Project and Digital October in strategic partnership with RVC. RSR's main task is to assess all required success factors in startups, show the most promising teams and their developments to investors, thus giving startups a chance to catch investor’s eye. RSR partners with the Center for Innovation Commercialization and MedStart Association of Medical Startups that offer expertise in high-tech and biotech sectors. PwC Center for Technology and Innovation acts as RSR methodology development expert. Any tech company operating for less than 6 years and employing not more than 120 people is eligible to apply for participation in the rating by filling in a detailed questionnaire. The application will be assessed internally and then forwarded to experts. The latter will review the project through the Company website or during inperson expert sessions. Final rating will show in which

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To learn more, please refer to http://russianstartuprating.ru/

MARKET DEVELOPMENT

respect and how attractive the project may be for

institutes supported by some funds have launched

investors. Rating results are widely published in mass

the Russian Startup Tour. Sponsors and partners plan

media, both domestic and international.

to lay basis for sustainable and effective search and

Russian Startup Rating results are presented annually. As

promotion of new projects from the regions, overcome

of mid 2014, almost 2014 startups were indexed and this

sluggishness of talented regional inventors and teams,

process is ongoing.

demonstrate them a whole range of opportunities for innovation project development that exist today in the market, starting from education, legal and

To learn more, please refer to http://rst.startupvillage.ru/

Russian Startup Tour

infrastructural support to financing at all stages.

Enterprising people with interesting ideas and projects

As part of Russian Startup Tour experts and mentors

are scattered across a huge territory—this is the specifics

travel around the cities of Russia, meet young

of Russian innovation potential. A technological

entrepreneurs, scientists and inventors. City selection

innovation is often produced locally and is meant to

criteria include, first of all, high rates of entrepreneurial

address local needs, while it could be, subject to slight

activity, including participation of regional startups

modification, applied across the entire country or even

in federal contests and projects. Proactive attitude of

the whole world. Most of Russian innovators didn’t form

regional and municipal authorities encouraging and

a habit towards global thinking—many of them do not

supporting young entrepreneurs also matters. Generally,

see opportunities to enter even the nation-wide level

strong and interesting projects are not invented

believing that local business is more reliable. Hence

by geniuses, but residents of technoparks and business-

the conclusion—Russian innovation ecosystem still lacks

incubators established under the auspices of regional

clear and accessible mechanisms for promoting high-

authorities or on the basis of specialized colleges.

potential projects.

One more selection factor is a geographical location

However, identification of such projects and their

of the cities enabling entrepreneurs from neighboring

promotion up to nation-wide level is crucial for

regions to join the Russian Startup Tour.

development of Russian economy innovation sector.

The first tour took place in March–April 2013. One-

To address this issue RVC and other developmental

day meetings between market experts and young 19 Contents

MARKET DEVELOPMENT

technological entrepreneurs and innovators were held in 15 Russian cities and brought together more than 3,500 startupers. In 2014, meetings covered 27 cities from Vladivostok to St. Petersburg. Russian Startup Tour-2014 events were held from January through April and were attended by more than 9,000 participants. 469 regional startupers, selected out of 2,500 applications, presented their projects to expert jury and got preliminary evaluation of the quality and investment appeal of their work. 182 startups were invited to join federal programs and contests for further promotion and commercialization. Most of presented high-tech startups cover IT solutions for business, education and service industry (34%). The Russian Startup Tour’s TOP 5 also included healthcare (16%), chemical industry (15%), instrumentation (12%) and mechanic engineering, including in the Transport segment, and industrial equipment production (8%). Potential was also seen in innovative solutions for oil and gas industries, railway transport, metallurgy and power engineering, construction and agriculture.

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Regional sessions of practical consulting (RSPC) Venture market and innovation ecosystem development is a world-wide process. To feel confident in the market, one should understand how it functions. Knowing international experience and up-to-date practices is an important success factor: why inventing from scratch what has already been invented and tested? That was the purpose of establishing the Regional sessions of practical consulting (RSPC), the initiative combining expert trainings and consultations held in the regions on a regular basis through support of RVC. Usually the sessions last for several days. The audience brings together stakeholders who are one way or another interested in the development of innovation business: businessmen, investors, fund managers, inventors and innovators, governmental officials, students and professors.

To learn the events schedule, please refer to the Calendar at RVC website at http://www.rusventure.ru/ru/ calendar/ Participation requests can be e-mailed at education@rusventure.ru

MARKET DEVELOPMENT

* Innovation territorial cluster is a network of businesses and research laboratories with common goals and shared activities in key economic industries, mechanism of activities coordination and cooperation between cluster members, synergy effects driving improvement of economic performance and performance of each business due to high concentration and cooperation. Clusters boast a well-established innovation infrastructure (educational facilities, R&D centers, technology transfer centers, business incubators, technoparks, centers for shared use of scientific and engineering equipment, public organizations, financial institutions, cluster development centers etc).

The sessions incorporate a whole spectrum of practices:

Starting 2008, RVC has held more than 200 regional

lectures, business games, one-on-one business expert

sessions for 9,000 participants and 2,100 projects.

consultations.

During 2013, more than 670 projects got individual

During the sessions the attendees learn the basics

consultations and underwent preliminary expert

of venture business, angel investment and national

evaluation, some were selected to work with funds and

innovation system. Then, an investor search process

private investors.

is considered in detail: which criteria are taken into

In 2014, RSPC events have been held in 30 regions.

consideration, what are investor objectivity limits.

The program is targeted at science and technology

Then comes time of purely practical issues: how to make

community based in innovation territorial clusters* and

an effective pitch, how to negotiate, how to manage

closed cities.

team work.

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MARKET DEVELOPMENT

GenerationS: Russian startup support initiative Our life these days cannot be imagined without innovation. Many things that we use in our everyday life today have recently been someone’s idea or a dream. And such idea could be conceived in any corner of our country. However, not all innovators have enough funding, organizational resources or entrepreneurial skills required to successfully promote one’s innovation in the market and build an effective business. Many of RVC’s projects are aimed to address the above issues. The most effective in many respects are the contests of business plans, ideas and innovations. Anyone can participate in the contests, priority given, of course, to students of tech colleges, entrepreneurs, engineers and scientists. As part of the contests, the participants get their projects evaluated by professional experts, meet potential partners and present their projects to investors. To ensure scalability of these processes, in 2003 an entrepreneurial competition “Business of Innovative Technologies (BIT)” was established following the idea of partner competitions in the USA, such as MIT $100K and MassChallenge. Starting 2010, the competition has been sponsored by RVC.

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In May 2013, BIT was further elaborated by GenerationS, federal competition and accelerator of technological startups hosted by RVC and the Center for Innovation Development of Moscow under the auspices of the Government of Moscow. Contestants are offered to compete for the right to present their projects to investors at the Open Innovations International Forum in Moscow and get an award of RUB 5m and other special prizes from competition partners. An educational accelerator program offering hands-on training in tech business basics plays a vital role in GenerationS. In 2013, 70 teams from 18 cities of Russia and CIS selected out of 1,600 applications took part in GenerationS. All of them completed training at API Moscow accelerator platform. More than 90 experienced businessmen and consultants acted as mentors and experts. Based on the pitches results, 18 teams became the program finalists and, hence, participants of Open Innovations Forum. The winner status was given to Apperсode project, a mobile cross-platform management system. As a result of the competition, at least 7 companies have found their investors, as much are in the process of negotiating, 3 have become Skolkovo residents, and some regional projects opened their offices in Moscow.

To learn more, please visit: http://en.techstartrussia.ru/

MARKET DEVELOPMENT

The key tasks of GenerationS-2014 are to find and accelerate development of technological projects, improve their investment appeal, identify strong industry players, attract investors to the deals and find the best solutions that could be applied in the city environment. In 2014, GenerationS split into 4 sectoral tracks and got more large-scale: a total of 1,858 applications were collected in IT (Information Technology), Industrial (Industrial Solutions), BioTechMed (Biotechnology and Medicine) and CleanTech (Energy Efficiency and Resource Conservation). Four sectoral acceleration programs took place in Tomsk, St. Petersburg, Kazan and Moscow. 10 finalists were named at the Open Innovations Forum where they presented their projects to leading Russian and international investors. The key tasks of GenerationS-2014 are to find and accelerate development of technological projects, improve their investment appeal, identify strong industry players, attract investors to the deals and find the best solutions that could be applied in the city environment.

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MARKET DEVELOPMENT

Innovation environment requires constant supply of new talents, presentation of their achievements to wider public, sharing success stories and best practices. One of RVC’s main tasks is to engage as many talents from science and education as possible in technological business as company founders and effective middle and top managers. It is important to ensure the flow of highly qualified engineering staff whose shortage has been one of the key obstacles to development of high-tech market segments. Historically strong and widespread national engineering school has considerably lost its positions, science and inventive work being no longer prestigious. However, it is professional engineers that drive creation of technological innovation and it is the engineering environment that give birth to companies that change the “face of industry”. Instilling innovation skills in scientists and academics Russian science has long existed separately from business. Recently, the situation started to slightly reverse, but many developments of Russian scientists and engineers still see very little demand and remain pure theories or, at best, experimental samples. Often lack of interest to Russian inventions and innovations accounts for lack of scientists’ presentation skills. Insufficient entrepreneurial abilities of scientists and academics seriously hamper commercialization of

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the results of research and development activities of universities and research institutes, which, in turn, impairs development of high-tech economy sector in general. To address this issue, RVC implements a number of educational projects aimed to develop innovation skills among academics. Thus, as part of research conferences and schools for young researches, RVC supports educational events, extra-curriculum activities and tracks intended to give knowledge and skills required for commercialization of one’s developments. RVC has already supported more than twenty schools and conferences devoted to wide spectrum of priority subject-

Event schedule: http://www.rusventure.ru/ru/ calendar/ To apply for participation, please e-mail at education@rusventure.ru

MARKET DEVELOPMENT

matters in science and technology attended by more than

of business mentors take part in hands-on trainings

3,000 participants. One of the most notable events of this

practicing in commercialization of biotech R&D results.

format was the series of schools of science for young

By 2014, there have been four of such schools with a total

researches under a common name “Biotechnologies

of more than 400 participants.

of the Future”. In these schools, the students, postgraduates and young scientists specializing in different areas of modern biology and selected through competition not only listen to the lectures of leading Russian and foreign scientists during a week, but under the guidance

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MARKET DEVELOPMENT

Open development programs Our country boasts strong scientific background and solid entrepreneurial experience that only need to be brought together. Moreover, today society has come to realize that it’s possible and crucial. But how to do it? The answer to this question came through experience, both international and Russian. One just has to get good

startups in Palo-Alto, and educational program of StartupAccess offsite incubator in Boston. During 2012–2014, RVC supported more than 80 schools aimed to support and train innovators. Russian programs were attended by 17,000 people. More than 180 startups and 200 foreign mentors participated in offsite events.

use of it. To facilitate the task, RVC supports initiatives aimed to raise public awareness and educate. These programs are open for everybody interested: innovation entrepreneurs, R&D experts, students, college professors, business incubator staff—in other words, people who need to know how to develop innovation business at early stages. Open educational programs can have different formats: master classes, offsite workshops and trainings, business games and even game championships. Some of these educational activities are incorporated in advanced training schools curricula. Some of them are located in Russia only—for instance, schools of the Academic Park in Novosibirsk and SUMIT startup school in St. Petersburg. There are also offsite programs offering intensive training in successful innovation environment. These are such projects as DeepDive into Silicon Valley, a workshop for Russian

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Innovation management education in colleges Russian companies shifting towards innovation development are facing acute shortage of R&D, product and technology design and promotion managers. Middle management—project managers and workstream leaders—are the biggest deficit. To address the issue, Russia’s leading colleges, at RVC's request, develop and introduce educational master’s and bachelor programs aimed to improve innovation and R&D management competences. Establishment of RVC’s basic academic Department in Moscow Institute of Physics and Technology is one of the first successful projects of the kind. The Department prepares personnel for corporate R&D functions and venture fund management companies under Tech Projects Management Master’s program. Most of similar

To learn about event schedule, please refer to the Calendar at RVC website at http://www.rusventure.ru/ru/ calendar/ Participation applications can be e-mailed at education@rusventure.ru

MARKET DEVELOPMENT

educational programs in other colleges are meant for

colleges of Russia as the Presidential Academy

accomplished specialists, while RVC’s program offers

of National Economy and Public Administration,

Master’s education to bachelors.

National Research Institute of IT, Mechanics and

The Department is chaired by RVC CEO Igor Agamirzian.

Optics, National University of Science and Technology

The program is based on two pillars. First, study of

and others.

relevant applied disciplines in economics, management

In 2013, RVC ordered the National University of Science

and systemic engineering taught by leading industry

and Technology to develop Innovative Economy Basics

professionals. The second offers practical internship

module for further inclusion in basic Economics

in R&Ds units of major technological corporations,

curriculum for bachelors majoring in Engineering,

venture funds and innovation infrastructure facilities.

Technology and Natural Science. During the first

2014 saw the third student admission and first graduates

project year, the course has been heard by more than

who defended their master’s thesis. As part of thesis

700 students in five different technical universities

defense, graduates presented the results of their two-

across Russia. The program will be further made part of

year work with real technological projects and their

standard educational curriculum.

commercialization in different sectors, from drug development to quantum cryptography, from smaller space vehicles to mobile networks for hard-to-access settlements. 11 Master’s graduates were recruited by Russian tech companies and venture funds by the time of their graduation, and some have even launched their own successful technological startup. RVC is a partner of HSE Master’s program “R&D and Innovation Management in a Company”, preparing innovation directors and project managers. Besides, the Company implements post-graduate and advanced professional training programs in such leading 27 Contents

MARKET DEVELOPMENT

Project office In 2006, when RVC was established, Russia in fact had no innovation environment at all, and neither had it a well-developed venture investment market. By 2013, the situation has drastically changed. Today, innovation entrepreneurship has reached the scales when it needed the coordinating authority that would accumulate best practices and solutions from all over Russia and facilitate their implementation. Over the past few years, a whole lot of diverse governmental and departmental innovation support programs have been developed. These programs enabled creation and funding of innovation infrastructure: technoparks, innovation clusters, engineering centers (both based on colleges and independent); sometimes, colleges themselves got subsidies for innovation activities. Such programs are not always interrelated due to their departmental focus: they address the relevant issues of various Ministries. The Ministry of Industry and Trade, for instances, oversees new technologies; the Ministry of Economics is in charge of regional clusters development, and the Ministry of Education and Science supports colleges in the regions. The programs are focused on respective relevant activities and don’t always complement each other. This hampers the efficiency of

28 Contents

the interface between the programs, hence the need for creating synchronization instruments. This is primarily relevant for cities with intricate and complicated innovation infrastructure—Novosibirsk, Tomsk, Samara, Kazan, Moscow, and St. Petersburg. In 2014, RVC established a Project Office meant to coordinate innovation ecosystem members. The Project Office works in close cooperation with the Ministry of Economic Development and engages experts from Higher School of Economics Center for Strategic Developments as analysts. RVC’s Project Office sees its key task in monitoring innovation ecosystem in order to identify the best practical solutions and assist with distributing accumulated experience. A region that only starts shaping its innovation ecosystem may avoid mistakes made by its neighbors—it’s vital to demonstrate successful examples to organizations that are interested in them. Such feedback also performs an educational function—the more important it is to coordinate activities of all stakeholders. The Project Office strives to bring together representatives of all members of the infrastructure in group work. Conferences and roundtables are not always sufficient for a constructive dialogue, because participants usually confine themselves to discussing

MARKET DEVELOPMENT

problems and situations instead of developing a concrete

they are eligible for, and federal authorities are often

action plan.

too far from understanding regional specifics and do

This is how strategic sessions emerged as a new RVC

not take into account the peculiarities of local clusters,

working tool. This is a group work format in which

technoparks and engineering centers. The Project

the participants are split into several teams that

Office’s super-task for the upcoming years is to improve

discuss a concrete issue. They break this issue down

performance of interfaces between different innovation

into components, set up and prioritize tasks, and then

management levels, and this task is fully consistent with

look for a solution together. Thus, the participants don’t

public policy priorities.

merely share experiences, but manage to find a key to understanding relevant issues and learn to find solution algorithm. Within the upcoming two or three years, the Project Office will become some sort of a one-stop shop within the Russian innovation management system. Federal innovation infrastructure support programs are plenty; many of them overlap which makes things complicated. It is not always obvious for regional players which program

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MARKET DEVELOPMENT

Open Innovations Forum Open Innovations International Forum is a global discussion platform bringing together three pillars of the innovation system: business, scientific community and public authorities. Open Innovations Forum was established by leading Russian development institutes, RVC being a co-organizer and intellectual partner of certain panel discussions in such tracks as Capital, Education, Corporations, Biomedicine and Healthcare, Smart Computer and Green Technologies. Participation in the Forum is a real opportunity to make new acquaintances in innovation and venture environment, learn about possibilities to access governmental programs supporting innovation entrepreneurship, demonstrate achievements and share experience. Scientists will learn about cutting edge research of their colleagues and have a chance to share best practices. The Forum allows to build ties with entrepreneurs interested in developing products on the basis of R&D, get expert opinion of one’s own projects and learn how to adopt them to business. Open Innovations is an event that proves efficiency of development programs. Forum attendance by the country’s high-rank officials attests to high interest

30 Contents

in innovation development on the part of the State, which is always beneficial for investment climate. At Open Innovations 2013 RVC signed six cooperation agreements with leading western companies, including Europe’s largest aerospace corporation EADS, Finnish business accelerator StartupSauna and German Commission for Electrical, Electronic & Information Technologies (DKE). Also, among the Forum participants were TOP 10 companies of TechUp national rating, established by RVC in partnership with the Association of Innovative Regions of Russia, Vnesheconombank and PwC. At the official award ceremony of the GenerationS accelerator competition program, the jury comprising both Russian and foreign investors chose TOP 4 teams out of 19 semifinalists. Open Innovations 2014 is expected to welcome more than 4,000 guests. About 500 top Russian and foreign companies have applied for participation in Open Innovations Expo, an exhibition held as part of the Forum with estimated number of visitors exceeding 10,000.

To learn more, please refer to http://forinnovations.org/

MARKET DEVELOPMENT

Smart Home project To learn more, please refer to http://www.rusventure.ru/ru/ programm/cprojects/smart-house/

The earth's natural resources are getting fewer, its population is growing, and so are the risks of man-made disasters and accidents. To survive, humanity needs to drastically change its consumption model—spend fewer resources and reduce environmental load. Creation of intellectual “smart homes” is one of the steps in this direction. Modern technologies can make our homes safe, manageable and comfortable. Living space interacts with a human-being through high-tech appliances by adjusting to one’s preferences: choosing temperature, light and even music in line with what the master

To answer the above questions and in furtherance of the directive of the RF President RVC has implemented the Smart Home showroom initiative that became the center for popularization of high-tech intellectual buildings concept and respective innovative technologies. The project mission is to attract attention of as many stakeholders as possible, including representatives of regional executive authorities and business community, to implementation of pilot projects within the framework of Smart Home concept. The showroom demonstrates cost efficiency, as well as new standards of safety, manageability and comfort of homes built using intellectual systems.

favors. Depending on external and internal conditions, control systems regulate and monitor functioning of all utilities and electrical appliances, thus saving power consumption. “Smart homes” are no longer an imagination of fantasy authors; they became a reality gradually turning into a powerful industry that allows many countries to use a lot less resources and creates millions of jobs. But is there a demand for this reality in Russia? How much are those projects and are they cost-effective? And what’s most important, who can benefit from it and implement it?

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MARKET DEVELOPMENT

As part of innovation promotion, RVC popularizes venture business and attracts active population to working in the field, which results in creation of new companies. The main objective here is to establish adequate information environment, increase public awareness of technological entrepreneurship and innovation development, generate, through success stories, an image of a technological entrepreneur as a “hero of our times” who deserves to be respected and followed. Innovation popularizing contests and awards Mass media has traditionally been one of the main vehicles of translating crucial important information to wide audience and immediate participants of certain processes. Two things are vital for development of innovation infrastructure. First, mass media needs to realize that it is possible to achieve cost recovery of innovation business and that it can add value to economy in general, and in certain instances, to social structure. Second, competent and high-quality coverage of this topic shall be ensured. Innovation is a vast and complicated area that should be only covered by reporters that have understanding of its process and progress. To foster and incentivize this segment of journalism, RVC organizes and sponsors 32 Contents

contests aimed to reveal the best works in the field and reward the authors. Thus, for instance, RVC regularly supports such major prestigious contests as “PRESSZVANIE”and “SILVER BEAM”. These projects are meant to award the best innovation news writers. Apart from its immediate task— to identify and award top writers—the contests set high professional standards for entire community and enhance popularity of this topic among the reporters. RVC has its own competition for innovation reporters—Tech in Media—that has been held for the 4th time in a row. Originally it was called Innovation Through the Eyes of Reporters, but in 2014 was re-launched under Tech in Media brand taking over from same-name educational project for reporters sponsored by RIA Novosti and supported by RVC in 2013. The contest featured selection

To learn more about Tech in Media, please refer to http://www.rvc-contest.ru/ or Facebook https://www.facebook.com/groups/ konkursRVK/?fref=ts

MARKET DEVELOPMENT

In 2013, RVC supported more than 10 relevant mass media which made the latter double their audience. More than 700 reporters participated in educational programs in the field of innovation journalism. Target audience covered exceeded 12 million people. In June 2014, RVC’s campaign aimed to improve venture market transparency received two nominations of the IPRA Golden World Awards in Financial Services, Investor Relations and Technology. of the best reporters’ works covering innovation processes

The competition is judged by well-known editors and

in Russia—both in specialized innovation and venture

reporters of public and popular science mass media. In

publications and in popular media. The main objective

their observation, the quality of works improves each year

of Tech in Media is to incentivize professional media

and new committed reporters are emerging as the market

community to pay more attention to covering science,

develops.

innovation, high tech and venture entrepreneurship.

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MARKET DEVELOPMENT

Partner support of Technopark TV show Innovations are invented by people and for people, therefore, to boost development of the innovation environment it’s important not only to establish the ecosystem bringing together scientists and researchers, businessmen and investors, but ensure its interface with wider audience. People should not only know that certain products exist, but understand what they were invented for and who invented them, how effective, safe and applicable in one’s everyday life they are. This task is addressed, in particular, by the Technopark TV show telling about the best examples of technological entrepreneurship in our country. Technopark is a program about new developments, technological solutions that make people’s lives easier. The show is broadcast on Rossia-24 channel during evening primetime hours on weekends. Each release features a short story about new solutions to pressing issues of a human being and humanity in general. How to purify water? How to reduce heat and power consumption?

34 Contents

How to preserve rare books and historical treasures? The show gives the audience an overview of the problem, outlines solutions proposed by Russian innovators, and describes venture business functioning. Technopark show presents to the audience Russian small and midcap high-tech companies that are already recognized as the elite of Russian innovation business. Thanks to that show, mass audience will learn how and what one can achieve by becoming a tech entrepreneur in Russia. Technopark project started off in May 2012. As of now, more than 170 stories of technological entrepreneurs were broadcast. Starting 2013, Technopark features stories exclusively about TOP 30 companies from TechUp rating. In H1, these were the companies from 2012 rating, and in H2—the companies from last year’s rating. In 2014, TOP 30 TechUp companies remain the core of the show, however, from now on the companies from GenerationS and the Russian Startup Rating (RSR) will be added. For Russian high-tech startups, a broadcast of their 13-minute success stories by a federal channel before a 50 million audience across the country is often the most powerful way to present their young and promising teams and inventions to existing and potential investors.

To learn more: http://tv-technopark.ru/ To see all shows on Youtube http://www.youtube.com/channel/ UCBnXCI59G9m9klghpJBj0BA

MARKET DEVELOPMENT

TechUp rating Once initial difficulties are behind, a startup finally enters To learn more: http://www.ratingtechup.ru/en/rate/

the market, becomes a full-fledged company and is set adrift. But what are the criteria that would allow to evaluate the performance of an innovation company? What does a “successful high-tech company” mean at all? Adequate evaluation requires special standards, as well as a benchmark that the startupers could strive for. These issues are addressed by TechUp, a national rating of high-tech fast-growing companies with annual revenues ranging from RUB 100m to 10bn, and CAGR of at least 15%. To qualify for the rating, a company should meet several conditions. It should be four years old; over the past three years it should introduce at least one new or substantially upgraded product or service to the market on the basis of intellectual property it owns. Revenues from sales of such product or service shall not be less than 30%. Three years’ average R&D spending shall not be less than 5% of the revenues, and technological innovation spending—not less than 10%. Rating methodology has been developed with due consideration of most established international

practices such the World's Most Innovative Companies (Forbes), TOP 100 Global Innovators 2012 (Thompson Reuters) and The Global Innovation 1000 study of R&D spending (Booz&Co). The rating was established by RVC and the Association of Innovative Regions of Russia. Rating results were for the first time presented at Open Innovations 2012. This is an open rating, so any company that meets qualification requirements can be rated. In 2013, the rating was joined by Vnesheconombank and PwC. Vnesheconombank provided to participating companies access to specialized programs supporting mid-cap production business and PwC strongly contributed to rating methodology development. The rating takes into account multiple indicators, including innovation component itself. This is, perhaps, the most challenging moment, so to assess this component special experts—the most experienced innovation entrepreneurs—are invited. The most successful companies are split into three categories: TOP 10 biggest companies (by revenues), TOP 10 fastgrowing companies (by CAGR) and TOP 10 innovation companies (by technological advancement of released

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MARKET DEVELOPMENT

products, their novelty, availability of intellectual property,

innovation and technological entrepreneurship.

R&D spending and technological innovation).

Since 2014, the rated companies have their own

TechUp winners award ceremony is a prestigious event

professional club—a platform for expanding

held as part of Open Innovations Forum which is widely

communication opportunities, improvement of top

covered by mass media. Thus, the event itself and its key

management competence and building inter-industry

participants receive publicity, including international,

dialogue.

and set high standards for innovation environment

TechUp today is an important indicator of innovation

to look up to.

economy maturity, a tool that shapes favorable

Rating participants also become the characters of

environment driving its further growth, improves market

the Technopark TV show broadcast on weekends

transparency, ensures identification and scalability of

on Rossia 24 channel and telling about national

the best business practices.

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For more details, please visit Investment section ofÂ RVCÂ website http://www.rusventure.ru/en/investments/funds/

Contents

INVESTMENTS

RVC backed 15 funds worth RUB 25.2bn. RVC's total share in these funds exceeds RUB 15.7bn. Investments in 156 portfolio companies worth RUB 14.4bn are approved by the funds.* Upon RF Government assignment, RVC is overseeing 21 regional venture funds. Special attention is given to living systems (biotechnologies and medical technologies), information and communication technologies. Electronic engineering, development of new materials, power and industry issues also play an important role. * As of 3Q 2014.

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funds

INVESTMENTS

49%

62%

RVC share

7 closed-end mutual funds: NAV—RUB 16,334m; RVC share—49%

RUB

25.2bn 2 funds in foreign jurisdiction: NAV—USD 78m; RVC share—74%

38% Others

92%

4 subsidiary funds: NAV—RUB 6,482m; RVC share—92% 2 microfunds set up by RVC Seed Fund: NAV—RUB 67m; RVC share—75%

RVC’s funds include multi-sector, sector-specific and infrastructure funds. The latter are geared to directly address venture entrepreneurship ecosystem development tasks. The scope of RVC-backed venture funds investment activity is consistent with the List of Priority Development Areas in Science, Technology and Engineering in the Russian Federation, approved by the President of Russia. 39 Contents

INVESTMENTS

As the first wave of RVC-backed funds exits from portfolio companies is expected during 2014-2016, an important task would be to perform an audit and develop, based on its findings, the investment portfolio development plan. This refers both to the funds RVC has a stake in and such funds’ portfolio companies. It will enable RVC to timely plan and allocate necessary resources and prepare relevant tools. Portfolio companies of RVC-backed funds participate in programs aimed to drive innovation through public and private procurement, namely in Innovation Products Register. RVC Seed Fund The Seed Fund’s main objective is to support innovative

to investment committees and provide post-investment

companies at the earliest stage of development granted

(professional) support to the company. The Fund’s

such portfolio company’s business is consistent with

any of the priority areas of development in science,

than 70 companies from different regions of Russia.

technology and engineering in the Russian Federation.

First innovation projects were approved by the Fund

Maximum first round funding amounts to RUB 25m per

in June 2010. Now, there are more than 50 companies

company on the condition that a private investor provides

in the Fund’s portfolio.

at least 25% of the capital. The Seed Fund attracts private venture capital investors through the system of venture capital partners that seek out innovation projects, prepare them for presentation 40 Contents

Limited liability corporation. Established in 2009. NAV—RUB 1,982bn. Active investment period is planned for 6 years subject to further reinvestment. RVC is the majority stakeholder of the Fund (99.9%).

INVESTMENTS

Softline Seed Fund (SSF) SSF specialty is investment into seed and pre-seed

on Investment Partnerships No. 335-FZ adopted in 2011.

projects with focus on cloud services, digital marketing

Investment partnership does not imply incorporation of

and data safety solutions, as well as mobile apps. Softline

a legal entity.

Venture Partners is the managing partner in this Fund.

Established in 2013. NAV—RUB 34m. This is a seed and pre-seed stage microfund set up in a form of investment partnership agreement by RVC’s Seed Fund.

SSF investment period is 3 years subject to reinvestment. SSF is Russia’s first venture fund set up on the basis of investment partnership agreement. Investment partnership is a legal structure enabling to join financial and organizational efforts of several stakeholders to invest in high-risk projects or projects requiring significant capital. This set up is based on the Law

High Technology Fund The Fund will invest in biotech, new materials and

and addresses an important task promoting seed and

energy efficiency project and is planned for 5 years

pre-seed investments playing a special role in innovation

subject to extension. The major source of investments

ecosystem buildup.

comes from the Seed Fund and private investors.

Established in 2013. NAV—RUB 33.4m. This is a seed and pre-seed stage microfund set up in a form of investment partnership agreement by RVC’s Seed Fund.

Establishment of the High Technology Fund enables to realize a new venture capital investment mechanism—an investment partnership that manifests a positive trend in investment relations between the participants of the emerging market. The Fund focuses on development of strategically vital industries of the Russian economy 41 Contents

INVESTMENTS

RVC Biopharmaceutical Investments In today’s Russia, innovative Russian-made drugs

stages of development. RVC Biofund accepts direct

account for less than 1%. Moreover, there is no

applications from the initiators of innovative projects

infrastructure for the development of biopharmaceutical

or from potential private investors. The Fund can invest

and medical startups, which makes innovative projects

up to RUB 100m in a project during the first round

either flee abroad or spend 50-80% of their resources

of investment. The investment share of RVC Biofund

to procure foreign services. These include not only

cannot exceed 50% of the capital of an innovative

laboratory research, but also information analysis and

biopharmaceutical company. The Fund’s share in service

consulting services. RVC Biofund is intended to stimulate

companies can be up to 75%, with the rest coming from

the development of biotechnology projects in Russia.

a private co-investor.

Limited liability company. Established in 2011. Authorized capital as of September 1, 2014—RUB 800 Mio, potential target capital—RUB 1.5bn. RVC shareholding amounts to 96.25%. RVC Biofund’s life is unlimited.

The Fund creates conditions to prevent one of the most promising sectors from leaving Russia at the earliest

RVC Infrastructure Investment Fund RVC Infrafund aims to develop venture industry service

RVC InfraFund accepts applications for investment

infrastructure. The Fund focuses on consulting projects

directly from initiators of service projects in the field of

in marketing, finance, law, intellectual property, and

innovation or from investors ready to invest their assets

investor relations which are exactly the services that

in such projects. Maximum investment in one innovation

many tech innovation companies lack. Innovation

project amounts to RUB 100bn with 25% coming from

investors provide capital to companies that don’t develop

a private co-investor.

their own innovation projects and are not engaged in venture business, but support its key players.

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Limited liability company. Established in 2011. Authorized capital as of yearend 2013 amounts to RUB 1.1bn subject to increase up to RUB 2bn. The Fund’s life is unlimited. RVC shareholding amounts to 99.9%.

INVESTMENTS

MIC Civil Technologies Civil Technologies of the Military Industrial Complex is

in newly established companies not more than RUB 30m

an investment tool aimed to bring MIC technologies and

(at the first investment round). The Fund co-invests up

projects to the Russian and foreign civil markets. The

to RUB 100m with sector investors or venture capitalists

Fund fosters investment in seed stage companies whose

(including second rounds). As of September 1, 2014,

business is consistent with the list of critical technologies

3 projects were approved for investments by the Fund.

Limited liability company. Established in 2013. Authorized capital—RUB 500m, target capital—RUB 1bn. Planned life—7 years.

of the Russian Federation and that operate primarily in the field of high-tech instrumentation, special-purpose microelectronics and micromechanics, vision aids, high-precision navigation, new materials development, built-in systems, welding, soldering and heat treatment technologies. The Fund provides targeted convertible loans of RUB 5m to innovation companies or invests

Bioprocess Capital Ventures Bioprocess Capital Ventures focuses on investment

Companies of MICEX Innovation and Investment Market.

in venture projects in three areas of today’s high-

The Fund accounts for ca. 10% of total capitalization of all

technology industry: living systems/biotechnology,

companies traded in the Sector.

fine chemistry and telecommunications. The Fund’s

A closed-end venture capital fund. Established in 2007. NAV—RUB 3bn. Unit holders—RVC, Vnesheconombank, and the Fund’s venture capitalists.

portfolio companies are engaged in development and production of socially relevant products. Bioprocess Capital Ventures ranks TOP 1 in Russia for investments in innovation projects in 2007-2011 (according to PricewaterhouseCoopers). In May 2011, the Fund’s units started trading in the Sector for Innovation and Growth 43 Contents

INVESTMENTS

Maxwell Biotech The Fund is one of the pioneers and leading venture investors in biotech projects. For each project, Maxwell Biotech has custom tailored strategies for development

A closed-end venture capital fund. Established in 2008. NAV—RUB 3,061bn. Unit holders—RVC, private investor, the Fund’s venture capitalists.

and protection of intellectual property and applies different business models to diversify exit options. The Fund builds strategic partnerships at early project stages. In 2012, a cooperation agreement was signed between Maxwell Biotech and High-Tech Gründerfonds (HTGF), one of Europe’s largest venture capital investment firms.

VTB Venture Fund Investment focus: energy and energy efficiency, transport, aviation and space systems, rational management of natural resources, information and telecom, software development technologies, nanotechnologies and nanomaterials, information processing, storing and transfer technologies.

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A closed-end venture capital fund. Established in 2007. NAV—RUB 3,061bn. Unit holders—RVC, VTB Bank, the Fund’s venture capitalists.

INVESTMENTS

Innovative Solutions The fund is managed by Innovative Solutions, a company of the leading Israeli financial group Tamir Fishman. The main investment areas include information technology, energy and energy efficiency, biotechnology, medical

A closed-end venture capital fund. Established in 2008. NAV—RUB 1.8bn. Before 2013, known as the Tamir Fishman CIG Venture Fund. Unit holders—RVC, private investors, the Fund’s venture capitalists.

technology, new materials and nanotechnology. At present, Innovative Solutions has 5 innovation projects in its portfolio.

Leader Innovations Investment in one company ranges from RUB 50m to 300m. The Fund focuses on energy and efficient energy use, advanced chemicals and petrochemicals, media and telecommunications, software, innovative materials,

A closed-end venture capital fund. Established in 2008. NAV—RUB 3bn. Unit holders—RVC, SIBUR Holding, GPB and the Fund’s venture capitalists.

services and equipment, priority given to projects engaged in energy efficiency sector.

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INVESTMENTS

S-Group Ventures Severstal, one of Russia’s steel industry leaders, is a co-investor of S-Group Ventures. The Fund is managed by S-Group Capital Management. Key investment

A closed-end venture capital fund. Established in 2008. NAV—RUB 1.8bn. Unit holders—RVC, private investor, the Fund’s venture capitalists.

focus: financial services, nanotechnology and new materials, biotechnology and healthcare, Internet and telecommunications. S-Group Ventures portfolio companies specialize in IT.

New Technologies The Fund is managed by Allianz Investments, a company of the Allianz international financial group.

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A closed-end venture capital fund. Established in 2009. NAV—RUB 612.2m. Unit holders—RVC, MTS Bank and the Fund’s venture capitalists.

INVESTMENTS

RUSSIAN VENTURE CAPITAL I LP Great Britain The Fund is managed by Russian Venture Asset

Venture Partners, Chevron Technology Ventures, BP

Management Ltd. RUSSIAN VENTURE CAPITAL I LP

Alternative Energy etc.

was established to invest in the shares of BrightSource Energy, Inc., a venture company with headquarters

RVC’s first foreign venture capital fund. Established in 2010. NAV—RUB 1,150m. RVC is a sole stakeholder of Russian Venture Capital I LP.

in California and research facility in Israel. Today, BrightSource Energy, Inc., is contracted to build 2.6 GW solar power plants in the USA. Ca. USD 615m has already been invested in the Company by the largest foreign venture funds, such as Morgan Stanley, VantagePoint

Volga Venture Partners I, LP Great Britain RVC’s second foreign fund, originally registered as

partners and lure foreign partners to the Russian venture

RUSSIAN VENTURE CAPITAL II LP and then taken over

capital market.

by Volga Venture Partners I, LP in 2011. The latter

Established in 2010. NAV—RUB 1,200m. RVC’s second foreign venture capital fund.

was established on a parity basis with Investment Venture Fund of Tatarstan Republic and is managed by Volga Venture Management Inc., Delaware, USA. This cooperation adds value giving RVC new access to vast information about the latest (“hottest”) venture capital deals, enabling to develop a network of VC investor 47 Contents

INVESTMENTS

Portfolio companies of RVC-backed funds Medicine and Healthcare

NAPOLI

AELITA

Production of Chitosan nanofiber wound dressings in combination with different agents offers a new innovative approach to wound care Moscow

Production of universal digital anesthesia breathing equipment. WWW.ANEKOM.COM Nizhny Novgorod

Telecom

MAXTELCOM

IIKO

Production of technological equipment for fiber optic fusion splicing WWW.MAXTELCOM.RU Moscow

Development of integrated software solutions—innovating management systems for hospitality industry WWW.IIKO.RU Kazan

MIC Civil Technologies

Electronics

For more details please refer to Investment Portfolio section of RVC website http://www.rusventure.ru/ru/ innovative_projects/

48 Contents

Chemicals

RMT

AXION-RDM

Commercialization of thermoelectric cooler production technology and new methods of thermoelectric cooler manufacture automation WWW.RMTLTD.RU Nizhny Novgorod

Development and manufacture of new ion-exchange materials for selective extraction of rare, earth-rare and precious metals WWW.AXION–RNM.COM Perm

INVESTMENTS

BIOEQ

THERAMAB

HEPATERA

Specialized early-stage clinical trial unit WWW.BIOEQ.RU St. Petersburg

Development of innovative, highly effective and broadly applicable immunotherapeutic monoclonal antibody against autoimmune diseases and B-cell chronic lymphocytic leukemia WWW.THERAMAB.RU Moscow

Development and launch of innovative products for treatment of liver diseases WWW.HEPATERA.RU Moscow

VOCORD SOFTLAB

CDN-VIDEO

MOBI-MONEY

Design and development of turn-key intellectual video surveillance and telecommunications solutions WWW.VOCORD.RU Moscow

Content Delivery Network operator WWW.CDNVIDEO.RU Nizhny Novgorod

Convenient, secure and flexible universal cashless payment platform WWW.MOBI–MONEY.RU Moscow

Industrial equipment

PERM CHEMICAL COMPANY

ENGO

ECOCAT

Manufacture of highly refined electronic gases; development of pharmaceutical components WWW.PERMCHEMICAL.RU Perm

Development and commercialization of innovative Supersonic gas separation technology (3S–technology) Moscow

Practical application of catalytic technology developed by Catalysis Institute of the Russian Academy of Sciences WWW.ECOCAT.BIZ Moscow

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VENTURE MARKET LANDSCAPE. USEFUL LINKS

How to get funding from RVC-backed funds

Study focus, investment

Prepare project

policy and strategy

documentation in

of the fund

accordance with the funds' requirements see management

CLOSED-END

companies contacts

INVESTMENT FUNDS

Go Investment section at RVC website at http://www.rusventure.ru/en/ investments/funds/

Choose a relevant fund Prepare project documentation in accordance with SPECIALIZED

the funds' requirements

FUNDS To get funding, one needs to apply to one of RVC-backed specialized funds or management companies of closed-end funds.

Study focus, investment policy and strategy of the fund

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RVC Private Equity Fund http://www.rusventure.ru/en/ investments/fpi/authors.php RVC Biofund http://www.rusventure.ru/en/ investments/biofund/index.php RVC Infrafund http://www.rusventure.ru/en/ investments/infrafund/ Civil Technologies MIC http://www.rusventure.ru/en/ investments/opk/

VENTURE MARKET LANDSCAPE. USEFUL LINKS

Fund management companies contacts

e-mail the documents or use online application forms

Bioprocess Capital Partners LLP see management

(Bioprocess Capital Ventures closed-end investment fund), www.bcvf.ru

companies contacts VTB Capital Investment Management (VTB Venture Fund closed-end investment fund), am@vtbcapital.com, www.vtbcapital-am.ru Await response from

Allianz Investments (New Technologies closed-end investment fund),

the fund or contact

info@allianz-invest.ru, www.allianz-invest.ru

the fund (VC partners, in case of private equity

Maxwell Asset Management (Maxwell Biotech closed-end investment

funds) for status

fund), info@ammaxwell.ru, www.ammaxwell.ru

e-mail the documents or use online application

LEADER (Leader Innovations closed-end investment fund),

forms

info@leader-invest.ru, www.leader-invest.ru

RVC Private Equity Fund, Civil Technologies MIC: via VC partners only, for register refer to http://www.rusventure.ru/en/ investments/fpi/register.php RVC Biofund info@rvcbio.ru RVC Infrafund application@rvcinfra.com

S-Group Capital Management (S-Group Ventures closed-end investment fund), info@sgcm.ru, www.sgcm.ru Innovative Solutions (Innovative Solutions closed-end mutual fund), info@mdcg.ru, www.innovative-solutions.ru

51 Contents

VENTURE MARKET LANDSCAPE

Methodological support to market participants

More guidelines for ecosystem members: a E-commerce in Russia. A guide to successful

Investment partnership agreement template Development of legal framework is crucially important for building sustainable innovation ecosystem. To set up joint investments in Russia in compliance with the Federal

investments and projects a Federal target programs guide for innovative companies

For more details, please refer to: http://www.rusventure.ru/ru/ press-service/news/detail.php? ID=14426&sphrase_id=25952 http://www.rusventure.ru/ru/ programm/analytics/docs/201304_ RVC_DIT.pdf

a A guide to government-owned companies innovation programs for innovative companies

Law on Investment Partnerships of November 28, 2011 No. 335-FZ, RVC proposed using an investment partnership agreement as a risk-mitigation tool driving appeal of the Russian jurisdiction. An investment partnership agreement is a new legal pattern offering various possibilities of structuring joint investment activities. Agreement template was developed on the basis of best international investment practices under the guidance of Russian VC and private equity experts.

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http://www.rusventure.ru/ru/ programm/analytics/docs/201312_ ecommerce_p1.pdf http://www.rusventure.ru/ru/ programm/analytics/docs/ recommendations_federal_ program.pdf http://www.rusventure.ru/ru/ programm/analytics/docs/ recommendations_state_ companies.pdf

Contents

In 2013, the global total of VC investment amounted to USD 48.5bn, Russia’s share equaling to 2%. Total capital supply in 2013 exceeded demand, but still there was a shortage of bankable projects. The Russian market sees shortage of supply of seed and pre-seed funding, venture capitalists becoming more risk averse and shifting their attention to later-stage investments.

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VENTURE MARKET LANDSCAPE

The Russian VC industry saw skyrocketing growth starting 2007. In the most conservative estimates, during 2007-2012 the Russian venture market has posted fourfold growth both in terms of value and number of deals.

EY Venture Capital Insights and Trends 2007-2013 by EY and RVC

Russian VC industry insight and trends

http://www.rusventure.ru/ru/ programm/analytics/docs/201402_ RVC_EY_venture_markets_EN.pdf

In 2007, the estimates of the Russian Venture Capital

http://www.ey.com/Publication/ vwLUAssets/EY-russian-andglobal-venture-markets-eng/$FILE/ EY-russian-and-global-venturemarkets-eng.pdf

generated through 34 transactions at USD 108.3m.

Association (RVCA) put Russian VC market volume By 2009, annual investment volume increased 49% with a doubled number of deals. Global financial crisis of 2008 has adversely affected 2009 market indicators, but recovery was fast. In 2010, the market grew 24% vs. 2009. Through joint efforts of market players and the Government, investment volumes went up to USD 746.2m. While direct comparison of 2010 and 2011

purely attributed to methodology discrepancies. The market indeed has drastically changed and for the first time enabled to assert that private equity funds showed interest in and felt confident about the venture capital market. In 2012, the venture market has re-affirmed its success by reaching new record volumes of USD 1,213m (63% growth vs. previous year). 267 venture capital deals were recorded which is 34% up compared to 2011. By yearend, total investment volume has hit USD 2.51bn since 2007. In other words, in 2012 the volumes were almost the same as over the five previous years.

may seem inconsistent as different data sources were used for assessment, a multifold growth may not be 55 Contents

VENTURE MARKET LANDSCAPE

In 2013, although globally the market was bigger than

will be motivated to continue and expand their investment

in 2011, the Russian market slowed down significantly

activities.

with total investment volumes shrinking. Primarily,

Another positive trend is an increasing awareness about

the trend can be attributed to industry maturation—

the relevance of early stage investments on the part of

despite growth of funds capitalization and inflow of new

new investors emerging in the market in 2012-2013, as

players, investors became more risk averse and set

well as on the part of more experienced players that start

tougher project requirements.

to commit funds for investment in early stage projects.

As own experience is accumulated, first failures

Market players are unanimous in realizing the need

are admitted and national and foreign cooperation

for enhancement of seed investment and early stage

strengthens, investors do not only reconsider their project

support institutions. Development institutes fund more

evaluation criteria, but change their deal structuring

and more grants, and in mid-term perspective the trend

approach in general. In their risk minimization efforts

must secure for venture capital industry a foundation

they invest less at all investment rounds and become

for further growth creating a new flow of projects and

more demanding to companies as regards effective

improving their quality.

investment management. The above results in reduction of median deal value bringing it in consistence with certain developed markets, as well as in investors’ shift towards later stage projects and decrease of seed deals. Many funds have focused on portfolio companies that have already received funding, thus significantly cutting their investment activity. Given the above, growth number of exits and exit values is seen as an absolutely positive trend. If the trend preserves, the management funds and their stakeholders will gain confidence about VC investment potential and 56 Contents

MoneyTree Survey. Venture Market Navigator. Prepared by PwC jointly with RVC http://www.rusventure.ru/ru/ programm/analytics/docs/201402_ Money%20Tree2013_eng.pdf http://www.pwc.ru/en/technology/ publications/moneytree-april-2013. jhtml

VENTURE MARKET LANDSCAPE

It should be noted that market volume is an important,

Public financing of early stage projects plays

but not an exhaustive evaluation parameter. Volume

an important role and fosters expansion of project funnel

of issued grants is a good indicator of VC industry

for classical venture capital investment. On the other

development, but they are qualified as non-market

hand, a number of big grants exceeding USD 500,000

funding sources, therefore are not accounted in market

issued by Skolkovo has decreased from 107 in 2012 to 35

volume evaluation. In 2013, 1,693 grants worth

in 2013.* As before, the majority of grants were issued

USD 102.8m were allocated, which is 3-fold increase vs.

by the Fund Supporting Small Science and Technology

last year (702 in 2012), however, grants value decreased

Businesses also known as the Bortnik Fund.

(USD 145m in 2012). Median grant amount in 2013 also

Most grants are issued in biotech and industrial

decreased as did a median venture capital value: from

technology sectors aiming to underpin high-tech

USD 207,000 in 2012 to USD 61,000 in 2013—primarily

startups. Thus, out of total grants issued in 2013,

due to an increasing share of earliest-stage investor.

1,250 accounted for industrial and biotechnologies. In 2013, Russian GDP grew 1.5 % against 3.4 % in 2012. Economy growth rates slowdown was driven by a whole number of factors, both internal and external. Global recession of 2009 continues; global demand for Russia’s top exports is still far behind its pre-crisis volumes. Under the circumstances, the RF Government undertook certain measures to secure budget sustainability. They include, among other things, cutting investment spending. Decrease of public investments and a whole number of other adverse trends that we are seeing in the national market have driven reduction of business’ and private investors’ R&D spending.

* The report includes information about grants published before January 15, 2104.

Challenging macroeconomic conditions have not only driven slowdown of innovation business activity, but also 57 Contents

VENTURE MARKET LANDSCAPE

affected the timelines of certain programs aimed to

proceeds generated by investors grew more than 5-fold—

enhance technological modernization of Russia. All of

from USD 372m to ca. 2bn.

the above factors have hardly contributed to accelerated

At the same time, a number and value of venture deals

development of Russian venture market.

as a key venture ecosystem segment have changed

2013 results attest to certain positive developments

inconsistently. A number of deals grew by 18% to 222

in the Russian VC investment market, however, some

vs. 188 a year earlier, but total investment value shrank

disproportions and issues that have arose upon

28% from USD 1,213m in 2012 to USD 900m in 2013.

termination of initial growth and commencement of more

The accounting year saw tangible proliferation of

even and sustainable development have preserved.

business angels—Russia ranked Europe’s TOP 3 by angel

Total venture capital deals, including grants, investments

investment volume (Bureau van Dijk and Crunchbase

in venture infrastructure, as well as investor exits,

Deals).

grew 46% vs. 2012 to USD 2,890m, according to Venture Capital Insights 2013 yearend and EY. Investor exits were the key indicators of venture ecosystem growth. In 2013, such deals grew to 21 (vs. 12 in 2012). According to Bureau van Dijk and Crunchbase Deals, total exit

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VENTURE MARKET LANDSCAPE

Total angel investments amounted to USD 117m

development, remaining a main investor in high-tech

(up 4.5 times vs. 2012), while total number of business

and highest-risk sectors. “Geographical inconsistency”

angels deals increased 2.7 times vs. 2012. Proliferation

preserved: VC investment tools were fully accessible

of angel investment in Russia in consistent with global

in certain cities only (Moscow, St. Petersburg, Kazan, and

trends: in 2013, every fourth startup investment deal

Tomsk).

in USA and Europe was closed with participation of

All in all, in 2013, investment community has been

business angels or business incubators. Despite all

reconsidering their experiences from previous years.

achievements, venture market itself is still very immature

Many investors that entered the market 3 or 4 years ago

and shows obvious imbalances.

have completed their first investment round and focused

Average deal value in 2013 decreased from USD 5.6m

on portfolio management—hence deceleration of their

to 3.1m which can be attributed to market maturation

investment activity and interest towards new projects.

and adjustment of investors’ company evaluation and risk approach. Despite ongoing reduction of RVC-backed funds’ share in total venture investment volume— from 39% in 2010 to 13% in 2013—the Company remains an important contributor to innovation economy

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VENTURE MARKET LANDSCAPE

Foreign markets insights and trends The USA and Europe remain the world’s venture markets. They account for 88% of total global investments and 87% of global total deals in 1Q 2013. In 2012, in the USA the venture capital market volume slipped by 15% vs. 2011 to USD 29.7bn. A number of transactions also decreased, however, not so significantly—by 4% only (to 3,363). A downward trend preserved in 2013. Nevertheless, US VC industry remains a significant part of its domestic economy. Over the period from 2000 to January 2013 USD 167.9bn was invested in 8,288 businesses, considerable portion of funding still accounting for Silicon Valley. Starting early 2000, USD 62.2bn worth of VC deals were closed in Silicon Valley exceeding total figures for all other innovation centers in the USA. During 2007 through 3Q 2013, IT sector was the most attractive for venture capital investors. Speaking about global trends, the following key developments can be mentioned. 2014 saw skyrocketing

60 Contents

growth of investments in digital health startups. As of mid 2014, total funding volume amounted to USD 2.3bn, while in mid 2013 it did not even hit USD 1bn. There’s a growing interest in tech companies engaged in development and production of portable computers, primarily “smart watches”. Ca. 330 Mio smart watches are expected to be sold by 2018, and portable computers sales volumes will hit USD 47.7bn. “Smart toys” for children is another fast-growing industry. The USA has

Global and Russian venture market insights and trends 2007-2013 by EY supported by RVC http://www.rusventure.ru/ru/ programm/analytics/docs/201402_ RVC_EY_venture_markets_RU.pdf http://www.ey.com/Publication/ vwLUAssets/EY-russian-andglobal-venture-markets-eng/$FILE/ EY-russian-and-global-venturemarkets-eng.pdf

an established demand for these products with China, Brazil and Russia keeping up. The global market is seeing sagging demand for tablets and at the same time an increasing demand for PCs and laptops. Demand for tablets is expected to go down by 6.7% by 2014 yearend and by another 5.3% the year after. Besides, the bitcoin market was experiencing tremendous growth of 800% from June 2013 through June 2014 to USD 8.3bn by mid 2014, which drives increase of startups whose business models are linked to this currency.

http://ru.scribd.com/ doc/234301389/SparkLabsGlobal-Ventures-Technologyand-Internet-Market-Bi-MonthlyReview-0714–2014

VENTURE MARKET LANDSCAPE. USEFUL LINKS

Useful links To whom?

Why?

What?

Where?

Innovative

What are

RVC Calendar will keep you posted of all

companies

additional

ongoing and planned events

www.rusventure.ru/ru/calendar

RusBase platform

http://rusbase.com/startup/

GenerationS acceleration contest

http://en.techstartrussia.ru/

Internet platform

www.askcap.ru

RusBase venture platform

http://www.rusbase.vc

http://beanangel.rusangels.ru/useful-

Association (NBAA)

resources/find-investor

fund raising opportunities?

How to find aÂ business angel?

A glossary of PE/VC terms compiled by the Russian Venture Capital Association (RVCA) and containing a collection of definitions most frequently used in business circles and private equity and venture capital community. It also explains terms and expressions relating to stock exchange, particularly, to IPO. http://www.rvca.ru/upload/files/lib/RVCA-Glossary-2011.pdf

61 Contents

VENTURE MARKET LANDSCAPE. USEFUL LINKS

To whom?

Why?

Innovative

How to join

companies

an educational program and get project development and preparation advice?

What?

Where?

RusBase venture platform

http://rusbase.com/startup/

OhMyMentor program

http://ohmymentor.ru

Events Calendar at RVC website

http://www.rusventure.ru/ru/calendar

Courses and sessions of Higher School of Economic incubator

http://inc.hse.ru/eng/

Academpark “Winter” and “Summer” schools (Novosibirsk)

http://school.academpark.com

SUMIT startup schools (St. Petersburg)

http://sumit.ru

Taiga startup school (Irkutsk)

http://startuptaiga.ru

Friendship Accelerator program (Tomsk)

http://accelerator.tomsk.ru

RIS Ventures consulting company

www.risventures.com

ABRT Mangrove CEOCamp program

www.abrtcamp.com

LOGA Group consulting company

www.logagroup.com

Specialized Seed Forum trainings sponsored by RVC

www.seedforum.org

Russian Startup Tour, the road-show of the leading experts of Russian development institutions 62 Contents

www.startuptour.ru

VENTURE MARKET LANDSCAPE. USEFUL LINKS

To whom?

Why?

What?

Innovative

How to join

Knowledge Stream remote interactive

companies

an educational

educational project

program and get project development

Where? http://www.knowledgestream.ru/en http://www.ingria-startup.ru/en/useful/

“Startuper’s guide. St. Petersburg”

start-up_guide/ www.academpark.com/business_

and preparation advice?

“Startuper’s guide. Novosibirsk”

incubator/guide_startup

Where to get

Strogino Technopark (Moscow)

www.tpstrogino.ru/en/

Ingria Technopark (St. Petersburg)

www.ingria-park.ru/english/

incubator and technopark services?

ITMO University business incubator (St. Petersburg)

http://startup.ifmo.ru

Fabrika IT-park (Astrakhan)

www.itpark-astrakhan.ru

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VENTURE MARKET LANDSCAPE. USEFUL LINKS

To whom?

Why?

Experts and

Where to find

professional

Russian VC

market

market research

participants

findings?

What?

Where? http://www.rusventure.ru/en/programm/

RVC website

analytics/

MoneyTreeTM. Venture Capital Market Navigator report. Russian VC Industry. Survey of the Russian venture capital industry by PwC in cooperation with RVC

http://www.pwc.ru/en/

Russian and global venture capital markets in 2007-2013 by E&Y in cooperation with RVC

http://www.ey.com/

RVCA Venture Capital Market Survey

http://www.rvca.ru/eng/

NBAA angel investment market survey

http://rusangels.ru/en/

RusBase VC market analytics

http://rusbase.com

Preqveca VC deals base

http://www.preqveca.ru/en/

Russian Internet Deal Book survey by Fastlane

http://www.fastlaneventures.ru/?lang=en_us

J'son & Partners Russian venture market survey

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http://json.ru/en/json_partners/

VENTURE MARKET LANDSCAPE. USEFUL LINKS

To whom?

Why?

What?

Where?

Russian Startup Rating

www.russianstartuprating.ru

RusBase Russian venture market platform

http://pipeline.rusbase.vc/

GenerationS acceleration contest

http://en.techstartrussia.ru/

initial review?

OhMyMentor expert network

www.ohmymentor.ru

What educational

Be an Angel program

http://beanangel.rusangels.ru

Experts and

Where to find

professional

information about

market

startups with

participants

expert opinions and company profiles? Where to find information about startups with expert opinions and other data for

programs are there for business angels?

Ready for Equity training program for business angels and entrepreneurs introducing

http://rusangels.ru/naba/investors/

theÂ trainees to venture capital investing

ready-for-equity/about

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VENTURE MARKET LANDSCAPE. USEFUL LINKS

To whom?

Why?

What?

Where?

RusBase VC investment platform

http://www.rusbase.vc

MOEX Innovation and Investment market

www.moex.com/s25

Experts and

Where to sell

professional

one’s stake

market

in an innovation

participants

company?

iR&Dclub

www.irDclub.ru

Management

How to apply

To learn more about procedures, please

fundselection@rusventure.ru

companies

for participation

contact RVC

in competitive selection of management companies and fund set up? Strategic

Where to learn

investors

about tech companies going public?

MOEX iIM sector

www.moex.com/s25

Online information and trading system

http://www.ipoboard.ru/?locale=en

supporting leading non-public innovative companies in capital raising Russian Innovation IPO Club

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www.moex.com/a1765

VENTURE MARKET LANDSCAPE

Contacts RVC 29 Serebryanicheskaya nab. 4th Floor Silver City Business Center, 109028, Moscow, Russia +7 (495) 777-01-04 http://www.rusventure.ru/en/ Subsidiary: RVC USA Inc. USA

RVC Biofund 43 Lesnaya str., Office 412 127055, Moscow, Russia +7(495) 789-69-47 info@rvcbio.ru

RVC InfraFund 24 Krasnaya Presnya str. 123022, Moscow, Russia +7 (495) 729-64-59 office@rvcinfra.com www.rvcinfra.com

420 Boylston str., 6th Floor Boston MA 0211 +1 (857) 284-72-20 info@rvc-usa.com www.rvc-usa.com

RVC Seed Fund 5 М. Golovin per., 4th Floor 107045, Moscow, Russia +7 (495) 730-03-55 partner@rvcseed.ru www.rvcseed.ru

67 Contents

CONTENTS

Discovering Future

Team ................................................................................................................4

International Connections Market Development

7 11

RVC expert workshops ..................................................................................14 Innovation and R&D Directors Club (iR&Dclub) ...........................................14 Advanced training program for managers of private/public and private seed and pre-seed investment funds Pro VC ............................15 Ready for Equity ............................................................................................17 Russian Startup Rating (RSR) .......................................................................18 Russian Startup Tour ....................................................................................19 Regional sessions of practical consulting (RSPC) ........................................20 GenerationS: Russian startup support initiative ..........................................22 Instilling innovation skills in scientists and academics ...............................24 Open development programs........................................................................26 Innovation management education inÂ colleges ............................................26 Project office .................................................................................................28 Open Innovations Forum ...............................................................................30 Smart Home project ......................................................................................31 Innovation popularizing contests and awards ..............................................32 Partner support of Technopark TV show ......................................................34 TechUp rating ................................................................................................35

Contents

Investments

RVC Seed Fund ..............................................................................................40 Softline Seed Fund (SSF)...............................................................................41 High Technology Fund ...................................................................................41 RVC Biopharmaceutical Investments ...........................................................42 RVC Infrastructure Investment Fund ............................................................42 MIC Civil Technologies ..................................................................................43 Bioprocess Capital Ventures .........................................................................43 Maxwell Biotech ............................................................................................44 VTB Venture Fund ..........................................................................................44 Innovative Solutions ......................................................................................45 Leader Innovations ........................................................................................45 S-Group Ventures ..........................................................................................46 New Technologies .........................................................................................46 RUSSIAN VENTURE CAPITAL I LP (Great Britain) ........................................47 Volga Venture Partners I, LP (Great Britain) .................................................47 Portfolio companies of RVC-backed funds ...................................................48 How to get funding from RVC-backed funds.................................................50 Methodological support to market participants ...........................................52

Venture Market Landscape

Russian VC industry insight and trends ........................................................55 Foreign markets insights and trends ............................................................60 Useful links....................................................................................................61 Contacts ...............................................................................................................67

æ rusvk ä rusventure å rusventure

RVC www.rusventure.ru info@rusventure.ru +7 (495) 777-01-04

To read this brochure online, please refer to http://issuu.com/ russianvc/docs/rvc_ brochure_2014_eng/1

RVC e-resources are available at https://issuu.com/russianvc