Statement from CEO
Dear friends and colleagues,
We live in an age of wonders, a time of truly great changes. Advanced technologies are rapidly transforming the global economy: new markets are emerging, old ones are being modernized and companies are competing for demanding consumers by offering ever more sophisticated products.
These global trends also have a significant impact on Russia’s technological development.The commodity-based economy is currently being transformed into a «smart» economy. Coming to the fore are intellectual resources, which are essential for the development of high-tech industries and for the creation of new products.
I believe that Russia has already the infrastructure needed for a qualitative technological breakthrough. Russian companies are ready to enter new markets and compete with global leaders. Our task is to provide comprehensive support for their efforts and to help them in developing new technological advances and putting together research teams.
While remaining an institution whose aim is the development of the venture capital market, RVC today has also has a broader mandate. We are the project office for the National Technology Initiative (NTI), and we have at our disposal a whole range of instruments aimed at the development of technology business and the digital economy in Russia. The NTI concept is focused on overcoming the various barriers—financial, technological, regulatory—that are faced while creating the segments that will underlie the new economy of the future: driverless vehicles, neurotechnologies, new sources of energy, biomedicine, artificial intelligence. RVC, together with other development institutions, has worked hard to reduce the number of such barriers, and this was one of our main activities last year.
At the same time, advanced technologies need not only ideas and solutions but also people with sufficient skills to bring such ideas and solutions to life, which is why we apply such great importance to education. In a variety of formats—from the ambitious and experimental NTI University to traditional programs involving comprehensive cooperation with universities—we continued to build a system for training future leaders of technological change. This part of business will remain one of RVC’s priorities in the future.
Finally, one of our key tasks remains the shaping of the national venture capital market, which is one of the most important sources of funding for leading technology companies worldwide. In 2017, RVC approved its development strategy to 2030, which establishes our new mission as the creation of a mature venture capital market in Russia. Acting as a fund of funds, RVC keeps on providing state support to private investors. At the same time, it is extremely important to use RVC investment effectively, so that the market become less dependent on the state and that new standards of quality and professionalism be introduced in the venture industry. RVC is not only a source of needed financial resources, but also an integrator of best market practices and a platform for the development of highly professional capable representatives of the venture industry.
All of RVC’s initiatives that were implemented in 2017 were in some way future-oriented, related to improving the systems and processes that are shaping the country’s economic and social development. Both the technology industry and the world in general are changing, and it is important to respond to such changes timely. Thus, we are not only shaping the present but also creating opportunities for the future. The idea of creating new opportunities is the keynote of RVC’s Annual Report 2017. I hope you will find it interesting.
Best regards,Alexander Povalko
RVC is a state fund of funds and a development institution in the Russian venture capital market, one of the key state instruments for building a national innovation system.
RVC’s mission is to create a mature venture capital market through the consolidation and development of resources, competencies and initiatives on the part of investors, investment portfolio managers and entrepreneurs so as to create and promote innovative products and technologies in priority technology areas, making Russia a leader in the global technology market.
RVC’s strategic goal is to become, by 2030, an important player in the international venture capital market comparable to European funds of funds in terms of its scope of operations, to support Russian entrepreneurs operating in priority technology areas, and to efficiently transform potential in various fields of science and technology into innovative technologies, products and services.
Statement from the Chairman of Board of Directors
2017 marked an important milestone for RVC: a new strategy for the Company’s development to 2030 was approved, and strategic objectives and key lines of business were identified.
RVC’s mission is to develop a mature and stable venture capital market in Russia, since a successful venture market is necessary condition to realize the country’s potential in the areas of technology and innovation.
RVC, in partnership with other development institutions and state corporations, worked on the development of new instruments for venture investments in 2017. With the addition of four new funds last year, 26 funds have now been created operating with the total of RUB 35 billion of RVC-backed funds as of the end of 2017. Their investment focus fully corresponds with the state’s priorities, i.e. knowledge-intensive industries that need to be developed for the technological revitalization of the Russian economy. In 2017, there were also six new exits from portfolio companies in the RVC-backed funds.
Another important area covered in the new strategy is the integration of all RVC instruments with the goals and objectives of the National Technology Initiative (NTI). In 2017, two new NTI roadmaps were within this area in 2017, and 21 projects received state support. To overcome the significant barriers to technology development, NTI technology competitions were launched. In cooperation with the Agency for Strategic Initiatives, RVC founded Russia’s first NTI University 20.35, which will shape a new generation of professionals for global markets.
In 2017, RVC provided financial and administrative support for the implementation of two projects run by Russia’s Ministry of Economic Development: «Development of leading innovation clusters: in securing investments at the global level» and «Support for private high-tech leaders». In particular, RVC facilitated administrative and analytical support for the projects.
To encourage interaction between representatives of the venture investment industry and the state, RVC and the Ministry of Economic Development set up a Venture Capital Market Council in 2017.
Promoting technology entrepreneurship and supporting medium-sized innovative businesses remain most important activities among RVC. In 2017, within the framework of GenerationS, Russia’s largest accelerator, RVC brought together entrepreneurs for the fifth time, this time from 237 cities and 13 countries representing 3,470 start-ups.
I believe that the implementation of these initiatives in 2017 will serve as the foundation for the successful implementation of RVC’s new strategy.
Best regards,Oleg Fomichev