VALUE OF FUNDAMENTALS
ANNUAL REPORT 2015 CONTENTS
1 RVC IN 2015 IN FIGURES P. 2 2 OPENING ADDRESS BY THE GENERAL DIRECTOR AND CHAIRMAN OF THE MANAGEMENT BOARD P. 4 3 RUSSIAN VENTURE CAPITAL MARKET P. 10 MACROECONOMIC CONDITIONS FOR THE VENTURE INDUSTRY IN THE RUSSIAN FEDERATION P. 11 MAIN RESULTS AND KEY TRENDS IN DEVELOPMENT OF THE RUSSIAN VENTURE CAPITAL MARKET IN 2015 4 PRIORITIES OF RVC'S ACTIVITY FOR 2015-2016 P. 14 5 CREATION OF THE NTI PROJECT OFFICE P. 20 6 INVESTMENT ACTIVITY P. 31 MAIN RESULTS OF RVC INVESTMENT ACTIVITIES P. 33 MAIN RESULTS OF RVC-BACKED FUNDS P. 36 SUBSIDIARY FUNDS P. 40 FUNDS WITH FOREIGN JURISDICTION P. 42 FUNDS ESTABLISHED IN THE FORM OF CLOSED-END FUNDS (CEF) P. 44 FUNDS ESTABLISHED IN THE FORM OF INVESTMENT PARTNERSHIP AGREEMENT 7 ACTIVITIES FOR THE DEVELOPMENT OF AN INNOVATION ECOSYSTEM P. 49 INVESTOR DEVELOPMENT PROGRAM P. 55 PROGRAM FOR THE GLOBALIZATION OF THE RUSSIAN INNOVATION INDUSTRY P. 59 PROGRAM FOR PROMOTING INNOVATION ACTIVITIES P. 65 PROGRAM FOR THE DEVELOPMENT OF THE INNOVATION ECOSYSTEM P. 73 INTERNATIONAL PROJECTS FOR DEVELOPING AN INNOVATION ECOSYSTEM 8 EXECUTION OF INSTRUCTIONS OF THE RUSSIAN FEDERATION GOVERNMENT REGARDING THE DEVELOPMENT OF INNOVATION P. 82 9 FINANCIAL RESULTS FOR 2015 P. 86 10 CORPORATE GOVERNANCE P. 90 11 SOCIAL RESPONSIBILITY AND SUSTAINABLE DEVELOPMENT P. 106 12 APPENDIXES P. 112 MAP OF RVC PARTNER INTERACTIONS IN 2015 P. 114 ANNOTATIONS OF ANALYTICAL MATERIALS P. 124 CONTACTS P. 126 GLOSSARY P. 128 FEEDBACK QUESTIONNAIRE P. 130 DISCLAIMER
www.rusventure.ru/en RVC ANNUAL REPORT 2015 1 RVC IN 2015 IN FIGURES OPENING ADDRESS BY THE RUSSIAN VENTURE PRIORITIES OF RVC'S CREATION OF THE NTI INVESTMENT ACTIVITY ACTIVITIES FOR THE EXECUTION OF INSTRUCTIONS FINANCIAL RESULTS CORPORATE SOCIAL RESPONSIBILITY APPENDIXES GENERAL DIRECTOR CAPITAL MARKET ACTIVITY FOR 2015-2016 PROJECT OFFICE DEVELOPMENT OF AN OF THE GOVERNMENT FOR 2015 GOVERNANCE AND SUSTAINABLE INNOVATION ECOSYSTEM REGARDING THE DEVELOPMENT DEVELOPMENT OF INNOVATION RVC IN 2015 IN FIGURES 23 33.7 3 1.9 191 24 44.4 111 % RVC-BACKED FUNDS RUB BILLION NEW FUNDS RUB BILLION PROJECTS EXITS USD MILLION GROWTH IN REVENUE operating as of the is the total value of RVC-backed created with RVC is the total (declared) value of approved for investment from portfolio companies as at is the total value of RVC-backed of RVC-backed portfolio end of 2015 funds as of the end of 2015 capital in 2015 new RVC-backed funds in the during RVC’s operations as of the the end of 2015 portfolio company funds in 2015 company funds form of investment partnership end of 2015 agreement in 2015 (without withdrawn projects)*
* Invested projects and the ones approved for investment and expecting financing are indicated.
RVC IS THE GOVERNMENT FUND OF FUNDS AND THE DEVELOPMENT INSTITUTE OF THE TOTAL (DECLARED) VOLUME OF NEW RVC-BACKED FUNDS, ESTABLISHED IN 2015 IN THE FORM OF INVESTMENT RUSSIAN FEDERATION, ONE OF THE KEY TOOLS OF THE STATE IN BUILDING THE NATIONAL PARTNERSHIP AGREEMENTS (IPA), %
INNOVATION SYSTEM. 1.77
Since its foundation, the activities of RVC have been focused on solving Federation for the period until 2020, RVC is also forming non-financial North Energy Fund I Seed IPA two main tasks: creation of favorable conditions for attracting private instruments, including: formation of innovation infrastructure, Phystech Ventures II IPA venture capital to develop innovative ventures in Russia and forming assistance in globalizing the Russian innovation industry, promoting Life Sciences Seed Fund IPA the necessary infrastructure. Today RVC provides various forms of and popularizing technological enterprises, and events enabling an 47.59 50.64 support to innovative technology companies that are in the early stages increase in the competencies of players in the Venture Capital market. of development, thus compensating the high risks and low activity of Thanks to several years of experience in VC investment and unique private capital in this sphere. expertise, RVC also has the role of a competence center. As such it DISTRIBUTION OF RVC’S INVESTMENTS IN PRIORITY AREAS aims to: create the necessary conditions for cooperation between OF THE MODERNIZATION AND TECHNOLOGICAL DEVELOPMENT RVC conducts its investment activity through venture capital funds different elements of the innovation ecosystem; accumulate and OF THE RUSSIAN ECONOMY FOR THE YEARS 2007–2015 created jointly with private investors. RVC acts as a Limited Partner in promote best investment practice; carry out optimization, integration (BASED ON THE AMOUNT OF APPROVED INVESTMENTS), % all the funds and does not influence investment decisions. and scaling-up of market mechanisms; and contribute to the 11.52 Medical equipment and emergence of new instruments for supporting innovation activities. pharmaceuticals The total number of funds created by RVC as of the end of 2015 13.25 reached 23 (including two funds in foreign jurisdictions), with a total In 2015 RVC was entrusted with the function of Project Office of Strategic computer value of RUB33.7 billion1. Through the RVC-backed funds created, the National Technology Initiative (NTI) Program in recognition of technology and software a total of 191 portfolio companies was approved for investment for its unique competencies. This program is aimed at forming new 31.41 Space and a total sum of over RUB17 billion. markets and creating conditions for Russia to become a global telecommunications leader in the field of technological innovation by 2035. Within the NTI, 17.20 Energy efficiency However, ensuring the sufficient inflow of money in the venture RVC provides technical, analytical and methodological expertise to Other capital market within the framework of public-private partnership support the activities of working teams, and the operations of the NTI’s DISTRIBUTION OF RVC-BACKED FUNDS INVESTMENT is a necessary, but not sufficient, condition for sustainable evolution Interdepartmental Working Team of the Presidium of the Presidential 26.62 BY REGION FOR 2007-2015 (CALCULATED BASED ON AMOUNT of the innovation ecosystem. Taking into account the aims and Council of the Russian Federation on Economic Modernization and OF APPROVED INVESTMENTS), % objectives of the Strategy for Innovative Development of the Russian Innovative Development of Russia. 0.99 5.83 1.67 1.75 Moscow and Moscow region 2.51 Foreign countries 5.94 St. Petersburg Perm Krai 62.55 Tula region Nizhny Novgorod region
18.76 Bryansk region 1 Calculated with account of the current fund closing. Other
2 VALUE OF FUNDAMENTALS www.rusventure.ru/en RVC ANNUAL REPORT 2015 3 OPENING ADDRESS BY THE GENERAL DIRECTOR AND CHAIRMAN OF THE MANAGEMENT BOARD
In 2010-2012, the young Russian venture industry was able to achieve significant growth. Thus in 2012, Russia joined the leaders of the European venture capital market in the sector of high technology DEAR COLLEAGUES, PARTNERS AND FRIENDS! innovation, which was one of the most positive (albeit unfortunately still relatively rare) achievements on the road to move the The past year was not an easy one for our country. Natural resource markets and the domestic economy towards an innovative challenging foreign policy situation had a significant impact on the Russian economy, the rate development model. During the years since the birth of the venture industry, of GDP growth, and the rate of the national currency. As a result, a decrease in economic a number of foundational mechanisms activity was also observed in the sphere of technological innovation companies. All players and tools have been established in our country. It should be recognized however of the Russian venture capital market – investors, technological enterprises and, of course, that it has not yet been possible to build a RVC – had to apply substantial efforts in searching for appropriate solutions to the new completely sustainable system for creation challenges. However, although 2015 was a difficult year for RVC and our partners, it was also an of new capital. extremely rich one. We made significant achievements and built the foundation for productive Due to the current “disruptions” in the national innovation ecosystem, it has work in the coming years. not been possible to fully reveal the potential of the venture industry. The market environment remains excessively overregulated and non-transparent, and The continuation of foreign policy Another clear problem was the deepening Taking into account the depreciation Russian jurisdiction is still insufficiently challenges and dampened effects in the disproportions in both the industry and of the Russian ruble rate, the average attractive and convenient for foreign economy in 2015 exacerbated a series of stage structure of the Russian venture transaction volume in the Russian venture investors. There is a lack of substantial negative trends in the Russian venture capital market. Here the large proportion capital market in 2015 continued to decline money supplied by investment players industry. First, the level of trust in the of investments in the sphere of Internet in both relative and absolute terms. (including pension funds and insurance Russian innovation ecosystem was projects continued to increase, particularly companies) and domestic demand for significantly reduced among foreign and in projects with guaranteed share returns The significant contraction of the Russian innovation products by the real economy domestic sources of venture capital. on investment in the short term. Technology venture capital industry was particularly remains insufficient. Foreign investors adopted a conservative companies at a more mature stage drew noticeable against a backdrop of record position, significantly cutting or even increased interest among investors. rates of growth in the global venture Overall, the Russian venture capital market completely suspending their activity capital market. Results for 2015 show continues to demonstrate the ability in Russia. There was also a noticeable The investment horizon of venture funds that the total transaction volume to maintain business activities even in re-orientation of Russian venture capital was reduced significantly. Whereas exceeded1 USD128 million, which is 44 % conditions of excess pressures from negative to more favorable foreign markets. In investment plans were previously formed higher than 2014. The drivers of the external factors. As is clear, overcoming particular, there was continued growth in a 5-7 year perspective, today the global venture capital industry were the the significant shortcomings of the industry in the number of transactions of Russian majority of funds proceed from short- rapidly growing venture capital markets requires targeted, effective and concerted technology companies structured in term strategies for a period of not more in the USA, Germany, United Kingdom efforts from the government, RVC, other foreign jurisdictions, including those in than 2-3 years. The rate of growth of new and Israel, with significant growth also innovation development institutes and market neighboring countries. funds was severely reduced. observed in Sweden and China. participants.
1 Venture capital trends. — KPMG, CB Insights, 2016.
4 VALUE OF FUNDAMENTALS www.rusventure.ru/enwww.rusventure.ru RVC ANNUAL REPORT 2015 5 Last year RVC undertook considerable was put forward by the Russian President of non-financial instruments that are the results of a meeting of representatives remains to be done, but there is one efforts to maintain the main elements in an address to the Federal Assembly aimed at development of the venture from the expert community on innovation thing I am confident of: just as it is today, of the venture capital market’s of the Russian Federation in December capital ecosystem and innovative development issues. With the assistance the most important strategic resource infrastructure, which enables the 2014. NTI is perhaps the first attempt technological enterprise. Above all, this of RVC, proposals were prepared to and reliable pillar of RVC will always industry’s fast recovery right from the in the history of our country to identify involves targeted RVC activities such develop the system of venture and remain its partner network representing start of economic improvements and the priorities of development based on as improvement of the competencies industry funds with participation of large thousands of organizations, investors, normalization of the foreign policy market demand rather than on the basis of market participants, support for government companies, and a project business angels, experts, entrepreneurs, situation, and a subsequent move to long- of available technology. NTI’s main task innovation infrastructure in the regions, was developed on the «Innovation in scientists and researchers – our term, sustainable growth. RVC’s activities is to ensure a competitive position for our and popularization of technological Russia» national report. RVC experts also colleagues, friends and associates. as the government fund of funds were country and for domestic companies in enterprises by using a unique partner actively participated in the development aimed at stimulating the activity of private the global technology markets that will be network of the project for the updated Strategy for Together we can achieve any goal. investors and also compensating the stage developing in the next 10-20 years. This Innovative Development of the Russian Thank you for being with us! and industry disproportions of the Russian new prospective objective given to RVC Let me offer a couple of examples. Federation for the period through 2020. venture industry. is at once an acknowledgement of the RVC’s cooperation with leading market company’s competence and efforts in the In 2015 on the basis of the GenerationS players in 2015 also included the initiative Based on 2015 results, the government work of creating an innovation ecosystem, startup accelerator, a federal platform to prepare and submit for wider expert maintained its active participation in the and also a very complex challenge that was created for developing instruments discussion the Strategy for Development Igor Agamirzyan creation of new funds. In this way, three requires mobilization of all our creativity, of corporate acceleration. More than of the Russian Venture Capital Industry. General Director and Chairman of the RVC-backed venture funds were created in ingenuity and experience. 2,500 teams from 14 countries applied to Management Board of RVC 2015 in the form of investment partnership participate in the acceleration program. In 2015 RVC’s activities, like that of other agreements with a total volume of around Considerable time and effort was The project was the largest startup government development institutes, RUB2 billion. spent during the year, including in the accelerator in Russia and the CIS, were carefully studied by independent discussions with our strategic partners, bringing together more than 150 partners consultants. For all of RVC’s teams, RVC-backed venture funds in 2015 focused on deciding how to draw up the outlines from government organizations and cooperation with external experts was on market segments that are traditionally of NTI’s support. Indeed, this is the way it commercial companies. a good opportunity not only to look at linked to high risks for private investors, should be. The main driving force behind ourselves from another angle, but also such as medical technologies and the Initiative should not be the customary Within the 4th national TechUp rating held to establish what needs to change our pharmaceuticals, energy efficiency, space bureaucratic structures but rather a by RVC and its partners, a unique set of work. At the same time it is pleasing that technologies and telecommunications. real, active entrepreneurial community, instruments was created to enable the external analysts confirm the efficiency For example, investments in the medical the support of which also represents the effective search for perspective high- of instruments adopted by our company. and pharmaceutical sector increased main task of the NTI project office. In 2015 technology export-oriented companies, Thus according to a report by PwC, RVC by almost 200 % compared to 2014. In we managed to outline the design for the identification of significant demand and has demonstrated the highest share of this way, transactions with participation organization, and methodological and analysis of existing barriers to their export earnings among the innovation of RVC-backed funds remained one of expert support of the NTI’s working teams. accelerated development. Already development institutes, and also the best the main drivers of the Russian venture To succeed, a range of mechanisms and there are currently 200 companies score for attracting co-investors’ funds. capital market also in the sphere of tools need to be formed in cooperation successfully exporting their products biotechnology. with the Agency for Strategic Initiatives to foreign markets. The consistent and coherent work of for Promoting New Projects ANO, federal the RVC team will be necessary in order One of the most important milestones executive bodies, universities, and One of the priorities in 2015 was RVC’s to take on the company’s broadened of 2015 was the decision of the Prime representatives of scientific organizations participation in implementing measures mandate, combined with the difficulties Minister of the Russian Federation to and business. aimed at improving the innovation of operating in the macroeconomic designate RVC as the project office of the ecosystem within execution of the order and foreign policy context that requires National Technological Initiative (NTI). The RVC was able to achieve significant of the Prime Minister of the Russian significant efforts to maintain and restore proposal of implementing the initiative results in 2015 thanks to the scaling up Federation from July 25, 2014, based on the Russian venture capital market. Much
6 VALUE OF FUNDAMENTALS www.rusventure.ru/enwww.rusventure.ru RVC ANNUAL REPORT 2015 7 RUSSIAN VENTURE CAPITAL MARKET RVC IN 2015 IN FIGURES OPENING ADDRESS BY THE RUSSIAN VENTURE PRIORITIES OF RVC'S CREATION OF THE NTI INVESTMENT ACTIVITY ACTIVITIES FOR THE EXECUTION OF INSTRUCTIONS FINANCIAL RESULTS CORPORATE SOCIAL RESPONSIBILITY APPENDIXES GENERAL DIRECTOR CAPITAL MARKET ACTIVITY FOR 2015-2016 PROJECT OFFICE DEVELOPMENT OF AN OF THE GOVERNMENT FOR 2015 GOVERNANCE AND SUSTAINABLE INNOVATION ECOSYSTEM REGARDING THE DEVELOPMENT DEVELOPMENT OF INNOVATION
MACROECONOMIC CONDITIONS FOR THE VENTURE MAIN RESULTS AND KEY TRENDS INDUSTRY IN THE RUSSIAN FEDERATION IN DEVELOPMENT OF THE RUSSIAN VENTURE
THE EXPECTATIONS OF PARTICIPANTS OF THE RUSSIAN VENTURE CAPITAL MARKET IN 2015 WERE CAPITAL MARKET IN 2015 PRIMARILY LINKED TO THE FALL IN OIL PRICES BELOW THE FORECAST LEVEL HAVING A NEGATIVE INFLUENCE ON THE RATE OF ECONOMIC DEVELOPMENT IN THE RUSSIAN FEDERATION. THE PREVAILING NEGATIVE CONTEXT, CHARACTERIZED BY FOREIGN POLICY CHALLENGES AND NEGATIVE TRENDS IN THE ECONOMY, DID NOT ENCOURAGE AN INFLOW OF INVESTMENTS INTO THE Considering the significant reliance of the Russian economy According to assessments by KPMG and CB Insights1, the global on conditions in the global commodity markets, the possible venture capital market reached record highs in 2015. The volume ECONOMY OF THE RUSSIAN FEDERATION IN GENERAL, OR INTO THE VENTURE CAPITAL MARKET consequences of such a development included risks of destabilization of global venture capital invested in technology companies in 2015 SPECIFICALLY. of the banking system, a worsening balance of payments and level reached over USD128 billion, which was 44 % higher than the of confidence among economic agents, a sharp weakening of the total volume of venture investments in 2014. There were a total of ruble exchange rate, a high level of inflation, and decreasing domestic 7,872 transactions in 2015, a quarter of which had corporations as demand. Unfortunately, this forecast was realized. The plunge in investors. The activity of both foreign and domestic investors decreased In large part due to the launch of new RVC-backed funds onto the energy prices had a major impact on the Russian economy, the rate of significantly due to the declining level of trust in the Russian market in 2015, it was possible to reverse the trend of decreasing GDP growth, and the rate of the national currency. While efforts taken A substantial share of investments was made in so called mega- innovation ecosystem. The focus of Russian venture capital total capital of new venture funds that had been emerging since by the Government of the Russian Federation led to a gradual slowing transactions, during which the estimated cost of investment in shifted to foreign innovation markets. In particular, there was 2013. The total volume of new venture funds was markedly of the rate of economic decline, it was not possible to completely technology companies was at least USD100 million. This indicates continued growth in the number of transactions with Russian higher than in the previous year, which was USD331 million in overcome in 2015, especially in the area of demand for investment. shifting preferences of investors towards more mature projects. At technology companies structured in foreign jurisdictions, including 2015 compared to USD188 million in 2014. The main contribution Thus the interaction of external factors on the Russian venture capital the end of the year 71 technology companies were valued at more than neighboring countries. towards achieving this was ensured by government-backed funds. industry were extremely negative last year. USD1 billion, which also exceeded 2014 results. According to data from the Russian Venture Capital Association The cautious position maintained by investors throughout the year (RVCA), more than a third of new funds formed in 2015 were Meanwhile a range of disproportions persisted in the global venture was also evidenced by the decreasing average size of transactions. accomplished with government backing. Their total volume (taking capital market. The industry’s domination by projects in the field of the The volume of investments by active venture funds decreased into account private funding) was 74 % of the total amount of Internet was evident (50 % of the total number as of the end of 4Q 2015). significantly. While the earlier investment strategies were based capital in venture funds formed during the year, which were mainly on long-term perspectives, in 2015 the majority of these were new RVC-backed funds in the form of investment partnership aimed at a planning horizon of not more than 2-3 years. Meanwhile agreements. the sharp devaluation of the ruble during 2015 significantly impacted on the currency component of venture transactions with Therefore, a significant market decline was avoided in 2015 Russian assets. thanks to the compensating support of government development institutes – above all RVC – and the activity of several private Based on growth figures for the total capital of funds operating in market participants. Furthermore, according to RVCA the Russian market, the domestic venture industry fell in 2015 by assessments, an overall positive trend was observed in 2012 to 11.9 %. In absolute terms the number of new venture funds in 2015 2015 in the total number of operating venture funds, with growth of also decreased (21 new funds compared to 30 funds in 2014)2. 42 % (from 159 funds in 2012 to 226 funds in 2015).
Nonetheless, the measures taken by RVC and other government development institutes in 2015 did have an impact. Particularly the financial and non-financial instruments of government support played an important, positive role in developing the national venture capital market.
1 Venture capital trends. — KPMG, CB Insights, 2016. 2 Market overview. Equity and venture capital investments in Russia. — RVCA, 2015. http://www.rvca.ru/rus/resource/library/rvca-yearbook/.
10 VALUE OF FUNDAMENTALS www.rusventure.ru/en RVC ANNUAL REPORT 2015 11 RVC IN 2015 IN FIGURES OPENING ADDRESS BY THE RUSSIAN VENTURE PRIORITIES OF RVC'S CREATION OF THE NTI INVESTMENT ACTIVITY ACTIVITIES FOR THE EXECUTION OF INSTRUCTIONS FINANCIAL RESULTS CORPORATE SOCIAL RESPONSIBILITY APPENDIXES GENERAL DIRECTOR CAPITAL MARKET ACTIVITY FOR 2015-2016 PROJECT OFFICE DEVELOPMENT OF AN OF THE GOVERNMENT FOR 2015 GOVERNANCE AND SUSTAINABLE INNOVATION ECOSYSTEM REGARDING THE DEVELOPMENT DEVELOPMENT OF INNOVATION
A number of disproportions were still noted in the structure of the The total volume of venture transactions increased in dollar terms The number of large transactions (volume of more than USD100 The absence of large numbers of interested strategic investors will venture capital industry in Russia. The information technology reaching USD2.19 billion — 31 % higher than the same figure million) remained at the same level, with two transactions worth significantly restrict future growth in the number of exits and positive (IT) sector maintained its leading role in terms of total volume of in 2014. The overall figure is usually significantly influenced by USD200 million completed (in 2014, two transactions were made for outcomes. Overall however, the levels and trends in investment activity investments. However, growth in the interest of government-backed transactions of investors exiting onto the market. The largest an amount of USD350 million)1. permit a cautiously optimistic forecast, provided there are no serious venture funds in the real economy was also an important outcome transaction for market exit in 2015 was that of an investment group external shocks occurring. in 2015. The share of new government-backed venture funds that from the Avito project with a value of USD1.2 billion. Excluding The number of exiting investors in 2015 was reduced from 30 to have mixed industry preferences or investment solely in the real this transaction, the total volume of venture transactions was 26, while the total cost of exits in 2015 more than doubled to reach According to RVCA data, the situation in the venture capital segment economy (i.e. not in the IT, e-commerce and Internet sectors popular USD0.99 billion2. USD1,573.5 million (compared to USD731.5 million in 2014)4. is relatively favorable. Overall there are signs of some stabilization, with private investors), was 87 % compared to 23 % in a similar group or at least a halt in the decline of the venture capital market that was of private funds1. In 2015 the market of venture capital transactions, which is the main In 2015, 6,074 grants were awarded, which represent one of the observed in 2013-2014, mainly in investment activity. venture capital ecosystem, showed a decline of 52 % (excluding most important sources of financial support for the Russian venture The growth in the number of transactions in the industrial transactions with a value of more than USD100 million) to USD232.6 ecosystem. They reached a total value of USD178.2 million, and in Meanwhile, it is clear that the government’s role in the near future will technology sector was remarkable, as was the growth in the total million, compared to USD480.9 million in 2014. Furthermore, the ruble terms this sum increased considerably more than the dollar remain highly perceptible in the investment segment for companies at investment volume, which was 65 % in USD. 2015 was also marked number of transactions reached 180 (including 29 transactions with equivalent. A substantial part of the grants was awarded for support both mature and seed stages. Ultimately, this ensures relative stability by a considerable increase in the number of transactions in the unknown amounts), which is 21 % higher than the figures in 20142. of projects in the industrial and biotechnology sectors. Based on 2015 of the market situation and creation of the conditions to achieve the biotechnology sector. The number of new investments in this sector results, the increased grant activity enabled some compensation for strategic development goals of the venture capital industry in the increased seven-fold from six in 2014 to 39 in 2015. At the same time, The average transaction size in 2015 decreased to USD1.5 million the declining availability of funding for early stage projects4. Russian Federation. In order for this to happen, RVC is reviewing the transactions of RVC-backed portfolio funds remained one of the main (compared to USD3.3 million in 2014). The largest decrease in provision of sustainable productive capital aimed at developing the drivers of the Russian venture capital market in the biotechnology average investment size was observed in transactions in early or There is a clear negative trend in the market’s development. national system of innovative technological enterprises. segment. Thus the industrial and biotechnology segments in 2015 seed stages (an 80 % reduction from USD4.1 million to USD0.8 However, one should bear in mind that the average annual ruble demonstrated steady growth with an overall increase in their share of million for early stage and a 67 % reduction from USD0.9 million rate fell by 37 % in 2015, according to the data of the Central Bank of the total transaction volume to 12 %. to USD0.3 million for seed stage transactions). The decline of the Russian Federation. Although it is impossible to distinguish the average investment size at startup and expansion phases were less exact impact of the currency component in every transaction, there significant at 65 % and 48 % respectively. In this way, the total share is every reason to believe that the declining volume of the Russian of investments in projects at the early stages (seed and startup) market in rubles in 2015 was much less than 50 %. declined to 9 % of the total venture capital market volume (compared to 29 % in 2014 and 21 % in 2013).
Main indicators of the Russian venture capital market3 Sum and number of transactions by sector in 2013–2015 2
Indicator 2013 2014 2015 Sector Indicator 2013 2014 2015 Total volume of transactions in venture ecosystem, USD billion2 2.89 1.69 2.19 Transaction amount, USD million 13 35.1 18.1 Biotechnology Total capitalization of venture funds operating in Russian market, USD million1 4,968 4,682 4,125 Number of transactions 13 6 39 Number of venture capital funds operating in the Russian market1 201 216 226 Transaction amount, USD million 611 440.6 205.9 Information technology Volume of venture transactions per year, USD million2 653 481 233 Number of transactions 193 133 97 Number of venture transactions in Russian market per year2 222 149 180 Transaction amount, USD million 29.1 5.2 8.6 Industrial technology Average volume of investment transactions in Russian venture capital market, Number of transactions 16 10 15 3.1 3.3 1.5 USD million2
4 About 76 % of the total amount is due to withdrawal of Accel Partners, Kinnevik and Northzone from Avito. 1 Market overview. Direct and venture investments in Russia. RVCA, 2015. http://www.rvca.ru/rus/resource/library/rvca-yearbook/.
2 Fifth annual MoneyTree; Venture Market Navigator overview of venture capital industry in Russia in 2015.
http://www.rusventure.ru/ru/programm/analytics/docs/MoneyTree_rus_2016.pdf. 3 Data on total capitalization of venture capital investment funds, operating in the Russian market, differs from the data puplished in 2013 and 2014 RVC Annual Reports due to specification of RVCA procedure (significant devaluation of Russian currency against US dollar in 2015 lead to recalculation of capitalization of funds, denominated in rubles, with account of the average weighted ruble exchange rate in the respective reporting periods).
12 VALUE OF FUNDAMENTALS www.rusventure.ru/en RVC ANNUAL REPORT 2015 13 PRIORITIES OF RVC'S ACTIVITY FOR 2015-2016 RVC IN 2015 IN FIGURES OPENING ADDRESS BY THE RUSSIAN VENTURE PRIORITIES OF RVC'S CREATION OF THE NTI INVESTMENT ACTIVITY ACTIVITIES FOR THE EXECUTION OF INSTRUCTIONS FINANCIAL RESULTS CORPORATE SOCIAL RESPONSIBILITY APPENDIXES GENERAL DIRECTOR CAPITAL MARKET ACTIVITY FOR 2015-2016 PROJECT OFFICE DEVELOPMENT OF AN OF THE GOVERNMENT FOR 2015 GOVERNANCE AND SUSTAINABLE INNOVATION ECOSYSTEM REGARDING THE DEVELOPMENT DEVELOPMENT OF INNOVATION PRIORITIES OF RVC'S ACTIVITY FOR 2015-2016
RVC OJSC’S DEVELOPMENT STRATEGY THROUGH 2020 DOCUMENTS THE MISSION, AIM AND MAIN DOCUMENTS FOR STRATEGIC AND BUSINESS PLANNING OF RVC OJSC OBJECTIVES OF RVC. IN 2015 THE COMPANY CARRIED OUT ACTIVITIES IN ACCORDANCE WITH THE 2013 VERSION OF THE DEVELOPMENT STRATEGY. THIS VERSION IDENTIFIED THE MAIN AIM OF RVC FOR THE PERIOD THROUGH 2020 AS ENSURING EFFECTIVE PUBLIC-PRIVATE PARTNERSHIPS FOR BALANCED STAGE AND INDUSTRY STRUCTURE OF THE VENTURE CAPITAL MARKET IN RUSSIA, TAKING INTO ACCOUNT GOVERNMENT PRIORITIES, AND THE MARKET’S SUSTAINABLE GROWTH AND GLOBALIZATION. RVC OJSC's Development Strategy The main objectives of RVC in accordance with the Strategy were: In 2015 RVC operated with the following priorities:
‣‣Creation of financial and non-financial instruments for supporting 1. Organizing activities aimed at developing and implementing the NTI. technological enterprises in early (pre-seed and seed) stages; ‣‣Creation of financial and non-financial instruments for supporting 2. Enhancing the maturity of the Russian venture capital market by 2013 technological enterprises in industries considered priorities for creating and adopting the financial and non-financial instruments that RVC OJSC's modernization of the Russian economy; are necessary to form a balanced stage and industry structure, as long-term development ‣‣Engagement of Russian and international private venture capital well as sustainable infrastructure development, in the venture capital program and intellectual resources in developing technological enterprise in market. 2014 industries considered priorities for the modernization of the Russian economy; 3. Ensuring effective participation of RVC in the integrated Innovation ‣‣Support for public-private partnerships, involving creation of 2.0 initiative, which is being implemented in cooperation with federal 2015 RVC OJSC's investment and infrastructural instruments for development of the executive bodies, development institutes, organizations and market 2015 annual venture capital market and technological enterprise; participants. This was specified in order of the Prime Minister of business plan ‣‣Facilitating the launch of Russian innovation and service businesses the Russian Federation based on the results of the meeting with 2016 into the global market and their integration into international value representatives of the expert community on the issue of innovation 2016 chains, as well as transfer of breakthrough foreign technology into development on July 25, 2014 (resolution from August 9, 2014 2017 2015 the Russian Federation. No.DM-P36-6057)1.
The long-term development program of RVC OJSC is an internal In conjunction with the specification and widening of RVC’s mandate 2017 2018 document that outlines specific instruments adopted to reach the in 2015, the company started to develop an updated Development main goals and objectives formulated in the Company’s Development Strategy of RVC OJSC for the period until 2020. This document is based 2019 Strategy. on the understanding that NTI is crucial to the integration of the two main directions of RVC’s activities: as the government fund of funds 2018 The main goals, objectives and directions of the company’s activities and an institute of innovation development. 2020 in the short-term perspective are determined by the annual business plans of RVC OJSC. In 2016-2020 RVC’s activity will be aimed at forming an effective set of financial and non-financial instruments based on the principles of 2019 In accordance with the decision of the Prime Minister of the Russian public-private partnership. This will ensure access for Russian high- Federation, RVC was in 2015 designated as the project office of technology companies to sources of venture capital, as well as access the National Technology Initiative (NTI), a long-term public-private to the competencies and services necessary to compete for leading partnership program that is aimed at forming new prospective markets positions in prospective global markets. 2020 on the basis of high-technology solutions that will determine the development of the global economy during the next 15-20 years.
1 2015 RVC Business Plan (updated version). Approved by RVC Board of Directors (minutes 9 as of August 06, 2015).
16 VALUE OF FUNDAMENTALS www.rusventure.ru/en RVC ANNUAL REPORT 2015 17 RVC IN 2015 IN FIGURES OPENING ADDRESS BY THE RUSSIAN VENTURE PRIORITIES OF RVC'S CREATION OF THE NTI INVESTMENT ACTIVITY ACTIVITIES FOR THE EXECUTION OF INSTRUCTIONS FINANCIAL RESULTS CORPORATE SOCIAL RESPONSIBILITY APPENDIXES GENERAL DIRECTOR CAPITAL MARKET ACTIVITY FOR 2015-2016 PROJECT OFFICE DEVELOPMENT OF AN OF THE GOVERNMENT FOR 2015 GOVERNANCE AND SUSTAINABLE INNOVATION ECOSYSTEM REGARDING THE DEVELOPMENT DEVELOPMENT OF INNOVATION
MAIN DIRECTIONS OF RVC PROGRAM ACTIVITIES IN 2015 IN 2016-2020 RVC PLANS TO FOCUS ITS EFFORTS ON ACHIEVING THE FOLLOWING OBJECTIVES:
Administrative, organizational and expert analytical support for NTI working teams NTI project office activity: Creation and launch of the NTI project Methodological support for the NTI ‣‣Forming and implementing an effective, large-scale system of project management, technical and expert analytical support for organizations, office Informational and instrumental support for the activities of the NTI project office informational and financial development, and implementation of NTI road maps; Promotion of the NTI ‣‣Facilitating attraction of co-financing in projects that are implemented within the frames of the NTI road maps, and claiming subsidies from the federal budget; Creating funds aimed at raising capital in the Russian venture capital market and supporting ‣‣Providing support for the activities of the Interdepartmental Working Team on development and implementation of the NTI, and the Presidium technological projects Council of the President of the Russian Federation for Modernization of the Economy and Innovation Development of Russia, within the frames of Creating funds aimed at investment in industries considered priorities for the modernization of the implementation of the NTI. Russian economy Program for creating investment tools Support for corporate venture capital tools, including in cooperation with government-backed large RVC’s activity as the government fund of funds: corporations and companies ‣‣Assisting the move of the Russian Federation’s venture capital industry towards sustainably expanding its reproductive capital by lowering risks Sharing practices of forming investment tools within (or with the application of) Russian jurisdiction for investors and providing market capital through mechanisms of public-private partnership; ‣‣Creation of new specialized investment instruments (funds) aimed at supporting technological enterprise, executed in the priority stage, industry Identification of terms and development of opportunities for attracting international capital to the market segments and also in new prospective markets of the NTI; Russian venture capital market in the prevailing economic conditions ‣‣Effective management of portfolio investments, including ensuring financially attractive conditions for RVC exits from portfolio funds. Removing barriers in order to form a unified instrumental environment for development of all subjects and facilities of the national innovation ecosystem, and creating conditions for their RVC’s activity as an innovation development institute: Program of innovation ecosystem productive cooperation and coordination development ‣‣Creation and provision of integrated selection of non-financial and financial instruments in the market that facilitate increased, rapid Development of competencies and cooperation of participants of the innovation ecosystem, and development of Russian companies that are potential leaders in prospective global and regional technology markets; elimination of system deficiencies in the area of social and human capital ‣‣Expanding the supply of high-quality innovation projects, by offering assistance during the process of market launches of technology companies Increasing the qualifications and competency development of venture investors and business that are of interest to strategic and venture investors and clients; angels ‣‣Facilitating increased demand in advanced domestic technologies, products and solutions (innovation), as well as innovative companies (teams) Investor development program in the real economy. This includes the implementation of stimulation programs for forming corporate and industry funds with the participation of Cooperation to create and develop corporate instruments for open innovation and venture large companies (including government corporations and government-backed companies). investment Support to Russian innovation and associated enterprises in their exit onto the global market and integration into international value chains. This is done by promoting companies from RVC's fund portfolio and using other partner pools (export support, searching for technological and strategic partners, and late stage investors) Russian innovation industry globalization Integrated representation of the interests of the Russian innovation ecosystem in current markets program (search and accompaniment of partnerships, exchange of best practice) Cooperation in transferring “breakthrough” foreign technologies and advanced international business competencies into the Russian Federation; commercialization and incorporation of innovative Russian technologies into the global market. Engagement of successful inventors, science and education representatives into international business circles Popularization of new professions and careers in the area of science and technology Program for promoting innovation Creating an image of technological enterprise in society as a “hero of our time” (PR of technological initiatives enterprise) Popularization among young people of engineering and IT education, scientific and technical activity Development of information infrastructure for new technology markets
18 VALUE OF FUNDAMENTALS www.rusventure.ru/en RVC ANNUAL REPORT 2015 19 The National Technological Initiative, unveiled by the CREATION OF THE NTI President of the Russian Federation on December 4, 2014 in an Address to the Federal Assembly of the Russian Federation, is a long-term public-private partnership PROJECT OFFICE program. It is aimed at forming new prospective markets based on high-technology solutions that will determine the development of the world economy over the next 15-20 years. The intended result of the NTI is the emergence of leading Russian companies onto global markets of the future in 2030-2035. RVC IN 2015 IN FIGURES OPENING ADDRESS BY THE RUSSIAN VENTURE PRIORITIES OF RVC'S CREATION OF THE NTI INVESTMENT ACTIVITY ACTIVITIES FOR THE EXECUTION OF INSTRUCTIONS FINANCIAL RESULTS CORPORATE SOCIAL RESPONSIBILITY APPENDIXES GENERAL DIRECTOR CAPITAL MARKET ACTIVITY FOR 2015-2016 PROJECT OFFICE DEVELOPMENT OF AN OF THE GOVERNMENT FOR 2015 GOVERNANCE AND SUSTAINABLE INNOVATION ECOSYSTEM REGARDING THE DEVELOPMENT DEVELOPMENT OF INNOVATION
CREATION OF THE NTI The project office was created with the aim of methodologically organizing accompaniment of all internal processes of the NTI, PROJECT OFFICE including coordination of working groups, cooperation with bodies of government authorities, launching specific projects through the THE NTI ENCOMPASSES A SET OF PROJECTS AND PROGRAMS AIMED AT FORMING development institute, coordination of the scientific technical policy THE CONDITIONS FOR GLOBAL TECHNOLOGICAL LEADERSHIP OF RUSSIAN COMPANIES of the Ministry of Education and Science of Russia, and support for IN THE NEW MARKETS THAT WILL DETERMINE THE DEVELOPMENT OF THE WORLD interaction with the regions and international cooperation. During the AND RUSSIAN ECONOMIES OVER THE NEXT 15-20 YEARS. first stage, the project office should build a system of accompaniment and establish cooperation with all participants of the NTI. I am certain Compared to other government initiatives, the NTI was from the very start designed as a wide coalition movement consisting of project groups that the project office team will manage this task, as many of the with representatives from government bodies, development institutes, scientists and Russian companies. At the same time, NTI adds to and employees have experience in managing difficult organizational strengthens existing support programs for scientific and technological development by ensuring that enquiries from potential leaders of the new processes, including preparation and implementation of the Winter markets are transferred to the system of state management. Olympic Games in Sochi. Nine prospective markets were identified by the NTI in 2015. The main instrument for the development of these markets are road maps, which include projects and activities for developing technologies, innovation products, and leading companies. The road maps also envisage improvements in the normative legal basis and standards system, infrastructural development, ways to ensure the future human resource demands of new markets, and popularization and development of professional communities.
Dmitry Peskov In accordance with the decision of the Prime Minister of the Russian Federation D.A. Medvedev, RVC fulfills the function of the NTI project office. In Director of the Management Board of Young Professionals 2015 RVC prepared methodological recommendations for the development of road maps, and also implemented technical, expert analytical and and Agency for Strategic Initiatives for Promoting New Projects ANO informational support for the activities of the working teams that are developing the NTI road maps.
RESULTS OF THE NTI IN 2015: ‣‣Methodological road maps developed for the NTI; In 2015, the road map for development of the AutoNet market was ‣‣Four road maps – AeroNet, AutoNet, MariNet and NeuroNet – approved by the Presidium Council of the President of the Russian Federation for developed and approved by the Presidium of the Council of the Modernization of the Economy and Innovation Development of Russia; President of the Russian Federation for Modernization of the Economy ‣‣Two road map concepts – HealthNet, EnergyNet – were approved by the Interdepartmental Working Group1; and Innovative Development of Russia. The main value of the prepared ‣‣Cooperation agreement signed with Skolkovo Institute of Science and Technology for providing expert and scientific and technological support for NTI working teams; document, which is the product of the collective work of experts within ‣‣Cooperation agreement signed with the Russian Technological Agency, which outlines support for creating project consortia within the the Foresight Fleet 2015, is the comprehensiveness of the activities implementation of NTI road maps. elaborated to develop the market. Priority directions were allocated in accordance with the requirements of the NTI project office, which propose projects that are as concrete as possible, last up to three years, and aimed at achieving real, significant results for Russian companies in the near future.
Sergey Kogogin General Director of Kamaz PJSC 1 Interdepartmental Working Group for development and implementation of NTI (science, technology and innovation) under the Presidium Council of the President of the Russian Federation for Modernization of the Economy and Innovation Development of Russia.
22 VALUE OF FUNDAMENTALS www.rusventure.ru/en RVC ANNUAL REPORT 2015 23 RVC IN 2015 IN FIGURES OPENING ADDRESS BY THE RUSSIAN VENTURE PRIORITIES OF RVC'S CREATION OF THE NTI INVESTMENT ACTIVITY ACTIVITIES FOR THE EXECUTION OF INSTRUCTIONS FINANCIAL RESULTS CORPORATE SOCIAL RESPONSIBILITY APPENDIXES GENERAL DIRECTOR CAPITAL MARKET ACTIVITY FOR 2015-2016 PROJECT OFFICE DEVELOPMENT OF AN OF THE GOVERNMENT FOR 2015 GOVERNANCE AND SUSTAINABLE INNOVATION ECOSYSTEM REGARDING THE DEVELOPMENT DEVELOPMENT OF INNOVATION
INITIATIVE FOR NTI METHODOLOGICAL SUPPORT
PROJECT FOR RVC EXPERT METHODOLOGICAL SUPPORT IN THE IMPLEMENTATION OF NTI ACTIVITIES. DEVELOPMENT OF METHODOLOGICAL REFERENCE MATERIAL PROJECT FOR DEVELOPING A METHODOLOGY FOR CREATING ALL TYPES OF ROAD MAPS FROM THE SOURCE MATERIAL OF NTI ROAD MAP RESOURCES
PROJECT AIMS: PROJECT RESULTS: PROJECT AIMS: PROJECT RESULTS: ‣‣Analysis of the activities of the federal ‣‣Development of a methodology for Methodological materials Single model for completing executive bodies and development Methodological reference Recommendations aimed creating, procedures for agreement and with description of structures various sections of the road map institutes that are supported by NTI; materials that identify the at improving participation implementation of NTI road maps; and differentiated requirements for presentation for agreement ‣‣Creation of maps of NTI financial conditions for access to of development institutes in ‣‣Providing support for working teams for completing three types of by federal executive bodies; instruments; resources for NTI participants; implementation of the NTI. by using the methodology during road map: market, technology ‣‣Analysis of opportunities to use existing development of road maps. and infrastructure; financial instruments in the interests of implementing NTI road maps; ‣‣Development of recommendations for educational seminars for NTI NTI working teams1 received improving the participation of development working teams on using the methodological support for institutes in the development of the NTI. 2 methodology and completing key 10 developing road maps. models;
1 NTI working teams having methological support for developing road maps are: AvtoNet, NeuroNet, AeroNet, MariNet, HealthNet, EnergyNet, SafeNet, FoodNet, TechNet and Kruzhkovoye Dvizhenie.
24 VALUE OF FUNDAMENTALS www.rusventure.ru/en RVC ANNUAL REPORT 2015 25 INVESTMENT ACTIVITY
Main results of RVC investment activities 31 Main results of RVC-backed funds 33 Subsidiary funds 36 Funds with Foreign Jurisdiction 40 Funds established in the form of closed-end funds (CEF) 42 Funds established in the form of investment partnership agreement 44 RVC IN 2015 IN FIGURES OPENING ADDRESS BY THE RUSSIAN VENTURE PRIORITIES OF RVC'S CREATION OF THE NTI INVESTMENT ACTIVITY ACTIVITIES FOR THE EXECUTION OF INSTRUCTIONS FINANCIAL RESULTS CORPORATE SOCIAL RESPONSIBILITY APPENDIXES GENERAL DIRECTOR CAPITAL MARKET ACTIVITY FOR 2015-2016 PROJECT OFFICE DEVELOPMENT OF AN OF THE GOVERNMENT FOR 2015 GOVERNANCE AND SUSTAINABLE INNOVATION ECOSYSTEM REGARDING THE DEVELOPMENT DEVELOPMENT OF INNOVATION
INVESTMENT ACTIVITY In 2015, negative factors of the internal environment affected the RVC'S INVESTMENT ACTIVITY IS AIMED AT ATTRACTING PRIVATE RUSSIAN AND FOREIGN PLAYERS Russian innovation ecosystem and venture capital market. The activity of venture investors decreased and there were a number INTO THE INNOVATION SEGMENTS OF THE RUSSIAN ECONOMY, AND ALSO DEVELOPING NEW of cases of Russian venture capital reorienting to foreign markets. INVESTMENT INSTRUMENTS OF THE NATIONAL VENTURE CAPITAL MARKET. Nonetheless, thanks to the active measures of government support, the Russian market for innovative technological This is achieved by forming funds based on public-private partnerships. RVC pays particular attention to knowledge-based sectors that have low enterprise demonstrated a clear safety margin. levels of private capital and are important for the development of balanced innovation of the country. Developing the venture capital market and introducing global best practice in fund management, RVC provides market participants with In the prevailing conditions, the investment activity of RVC as the methodological support and consultations on a wide range of issues. The company takes part in developing fund concepts (strategy, main state institute for development of the venture capital industry is parameters, mandates, management system etc.), works on creating mechanisms (criteria, procedures) for selection of the management teams a positive assessment, and was in 2015 aimed at compensating of funds, provides methodological and expert accompaniment for fund activities, and organizes discussions with potential investors. The work the slowing rate of growth of the Russian venture capital market. with potential investors takes place in two directions. Firstly, the company assists in analyzing the strategy documents and business plans funds, determining aims that can be achieved with their backing. Also, the company assists in preparing documents for review by management bodies This enabled RVC to avoid a worsening of a number of phased that take decisions on their participation in fund formation. and industry disproportions, and a significant reduction in market volumes. The main industry directions of RCV-backed investment funds in 2015 were medical technology and pharmaceuticals, energy efficiency, space technologies and telecommunications, which resulted in noticeable growth in investment in the area of medicine and pharmaceuticals.
It is also important to note RVC’s strength on the part of practical application and promotion of the investment partnership agreement as a perspective form for implementing collective investments in the Russian market. During the last three years, 10 RVC-backed funds were created in the form of an investment partnership agreement.
In assessing the results of RVC activities in 2015, one should also note that the most crucial event for the company in 2015 was the decision of the Prime Minister of the Russian Federation D. A. Medvedev on granting RVC the function of project office of the National Technological Initiative.
Oleg Fomichev State Secretary – Deputy Minister of Economic Development of the Russian Federation
28 VALUE OF FUNDAMENTALS www.rusventure.ru/en RVC ANNUAL REPORT 2015 29 RVC IN 2015 IN FIGURES OPENING ADDRESS BY THE RUSSIAN VENTURE PRIORITIES OF RVC'S CREATION OF THE NTI INVESTMENT ACTIVITY ACTIVITIES FOR THE EXECUTION OF INSTRUCTIONS FINANCIAL RESULTS CORPORATE SOCIAL RESPONSIBILITY APPENDIXES GENERAL DIRECTOR CAPITAL MARKET ACTIVITY FOR 2015-2016 PROJECT OFFICE DEVELOPMENT OF AN OF THE GOVERNMENT FOR 2015 GOVERNANCE AND SUSTAINABLE INNOVATION ECOSYSTEM REGARDING THE DEVELOPMENT DEVELOPMENT OF INNOVATION
MAIN RESULTS OF RVC INVESTMENT ACTIVITIES
Based on the successful experience of the Da Vinci Pre-IPO venture fund created together with RVC, I have 23 33.7 19.9 10 noted that in the prevailing situation of a deficit of “long- RVC-BACKED FUNDS RUB BILLION RUB BILLION FUNDS term money” and new quality elements on the Moscow as of the end of 2015 Total value of RVC-backed funds Total volume of RVC's investment in the form of investment as of the end of 2015 obligations in fund creation partnership agreements as of Stock Exchange, the new fund is more relevant than ever during the period of operation the end of 2015 for the support of Russian medium-sized companies. The Da Vinci Pre-IPO fund, for which RVC was the anchor investor, is oriented towards Russian high-
tech companies that are planning to carry out a public CHANGE IN THE VOLUME OF APPROVED INVESTMENTS IN PRIORITY DIRECTIONS offering within the next 2-3 years. The uniqueness FOR THE MODERNIZATION OF TECHNOLOGICAL DEVELOPMENT OF THE RUSSIAN ECONOMY IN 2015 COMPARED TO 2014 22 of the project is that the fund consists of a Russian REGIONAL VENTURE FUNDS provided with expert support and an international part (Da Vinci PE Fund II created Medical technologies for widening their functionality, and pharmaceuticals +198.63 % with participation of large international investors), including through development of new investment instruments and the relationship between them is regulated by Energy efficiency +78.02 % co-investment agreement. This is the first fund in the Russian market that has been realized in such a Space and telecommunications +16.24 % format, which opens up new possibilities for attracting long-term investments in the Russian economy by Computer technologies and software –70.61 % international investors. 2.8 2014 Other RUB BILLION –24.93 % 2015 Total volume of approved investments in the company's 0 200 400 600 800 1,000 1,200 1,400 portfolio as of the end of 2015
Oleg Zhelezko Managing Partner of Da Vinci Capital Management
30 VALUE OF FUNDAMENTALS www.rusventure.ru/en RVC ANNUAL REPORT 2015 31 RVC IN 2015 IN FIGURES OPENING ADDRESS BY THE RUSSIAN VENTURE PRIORITIES OF RVC'S CREATION OF THE NTI INVESTMENT ACTIVITY ACTIVITIES FOR THE EXECUTION OF INSTRUCTIONS FINANCIAL RESULTS CORPORATE SOCIAL RESPONSIBILITY APPENDIXES GENERAL DIRECTOR CAPITAL MARKET ACTIVITY FOR 2015-2016 PROJECT OFFICE DEVELOPMENT OF AN OF THE GOVERNMENT FOR 2015 GOVERNANCE AND SUSTAINABLE INNOVATION ECOSYSTEM REGARDING THE DEVELOPMENT DEVELOPMENT OF INNOVATION
MAIN RESULTS OF RVC-BACKED FUNDS
RVC-BACKED FUNDS AS OF THE END OF 20151
Name of fund Total fund size Subsidiary funds: 191 90.5 % 17.2 24 RVC Seed Fund LLC RUB1,982.0 million PROJECTS GROWTH IN THE NUMBER RUB BILLION EXITS Biofund RVC LLC RUB1,500.0 million approved for investment during OF APPROVED INVESTMENTS Total volume of approved by project companies 1 Infrafund RVC LLC RUB2,000.0 million RVC operations as of the end of in project companies in 2015 investments in innovation as of the end of 2015 2015 (not including projects from compared to 2014 companies as of the end of 2015 Civil Technologies MIC LLC RUB1,000.0 million which exits were executed)1, 2 (not including projects from 1 Funds in foreign jurisdictions2: which exits were executed) Russian Venture Capital I LP RUB1,588.376 million RVC IVFRT LP RUB1,794.336 million DISTRIBUTION OF INVESTMENTS OF RVC-BACKED FUNDS BY FEDERAL DISTRICT IN 2007–2015 (CALCULATED FROM THE VOLUME OF APPROVED INVESTMENTS), % Funds established in the form of closed-end funds (CEF): 0.25 Bioprocess Capital Ventures CEF for HR(V)I RUB3,000.0 million 0.57 0.07 VTB-Venture Fund CEF for HR(V)I RUB3,061.0 million New Technologies CEF for HR(V)I RUB612.2 million 1.51 0.03 Maxwell Biotech RUB1,224.4 million 5.69 Leader Innovation CEF for HR(V)I RUB3,000.0 million S-Group Ventures CEF for HR(V)I RUB1,800.0 million 6.74 Innovative Solutions CEF for HR(V)I RUB1,800.0 million Funds in the form of investment partnership agreement: 18.72 Central Federal District Foreign investments RusBio Ventures IPA3 RUB2,070.7 million North-West Federal District Finematica Air-cosmic IPA Fund RUB1,515 million Volga Federal District Da Vinci Pre-IPO Fund RUB3,788.788 million Ural Federal District North Energy Fund I Seed2 RUB958.64 million 66.42 % Siberian Federal District from the total volume Phystech Ventures II RUB900.0 million of investments is accounted Southern Federal District Funds in the form of investment partnership agreements (microfunds)1: for the Central Federal District Far Eastern Federal District Softline Seed IPA Fund4 RUB136.0 million (including RUB36.0 million5) North Caucasian Federal District High Technologies Seed Fund IT RUB133.6 million (including RUB33.6 million5) Seed Fund ACP IPA RUB33.4 million (including RUB8,4 million5) 66.42 Venture Fund Accelerator IPA RUB133.4 million (including RUB33,4 million5) Life Sciences Seed Fund IPA RUB33.4 million (including RUB8,4 million5)
1 For calculating the total volume of funds of microfunds, RVC only considers funds from private investors in order to avoid double counting because microfunds are created with 1 Data accrued from the beginning of RVC operations. participation of capital from RVC Seed Fund LLC, a subsidiary of RVC. Therefore, the total volume of RVC funds was RUB33,715.93 million. 2 Invested projects and the projects approved for investments and expecting financing. 2 Here and below the order for calculating fund size, including domination by currency, is carried out as follows. Some completed investments for fund creation were calculated in rubles according to the rate of the Bank of Russia on the date of investment. Some non-implemented obligations for fund creation were calculated according to the rate of the Bank of Russia on 31.12.2015 (72.8827 rubles per USD). 3 RBV Capital name is used for external communications. 4 Softline Seed Fund name is used for external communications. 5 Private investor funding.
32 VALUE OF FUNDAMENTALS www.rusventure.ru/en RVC ANNUAL REPORT 2015 33 RVC IN 2015 IN FIGURES OPENING ADDRESS BY THE RUSSIAN VENTURE PRIORITIES OF RVC'S CREATION OF THE NTI INVESTMENT ACTIVITY ACTIVITIES FOR THE EXECUTION OF INSTRUCTIONS FINANCIAL RESULTS CORPORATE SOCIAL RESPONSIBILITY APPENDIXES GENERAL DIRECTOR CAPITAL MARKET ACTIVITY FOR 2015-2016 PROJECT OFFICE DEVELOPMENT OF AN OF THE GOVERNMENT FOR 2015 GOVERNANCE AND SUSTAINABLE INNOVATION ECOSYSTEM REGARDING THE DEVELOPMENT DEVELOPMENT OF INNOVATION
PROJECT FOR SUPPORT OF RVC PORTFOLIO COMPANIES AIMED 36 633 111 % 44.4 AT PROMOTION OF INNOVATION PRODUCTS IN RUSSIAN AND FOREIGN MARKETS NEW PORTFOLIO COMPANIES PATENTS GROWTH IN REVENUES USD MILLION approved for investment (of which 222 foreign) from portfolios of RVC-backed Export volume of portfolio by RVC-backed funds in 2015 obtained by portfolio companies funds as of the end of 20152 companies of RVC-backed RVC is implementing the project under co-financing conditions (50/50) with the portfolio companies of funds. Within the project, portfolio of RVC-backed funds as of the funds in 2015 companies with high growth potential were supported at industry events, offered marketing research and market competition analysis, and end of 2015 1 marketing materials were developed to promote the company.
PROJECT AIM: RESULTS: ‣‣Support portfolio companies with high portfolio companies RUB million growth potential. DISTRIBUTION OF FUNDS BY ANNUAL EXPORT VOLUME OF RVC-BACKED PORTFOLIO received support within the growth in revenues for COMPANIES AS AT THE END OF 2015, % 16 program; 166 supported companies. 3,000 PARTNER: EMPLOYEES working in project ‣‣The company GVA LaunchGurus companies with investment from 1 1 RVC-backed funds 3
The support of RVC allows small companies like ours to establish links with corporations, regional authorities, and take the first step in doing business at a new level. Our experience of participating in RVC activities S.Group Ventures CEF confirms that the non-financial support component is extremely for HR(V)I important. Bioprocess Capital Ventures Based on the results of the roadshow in Samara, we managed to agree CEF for HR(V)I on presentation of products for the head doctors of Samara oblast, after Leader Innovation CEF which we signed a contract with a distributor and our products were 52 % for HR(V)I included in the procurement list. Participation in events in Yakutsk and Sochi also enabled a range of important contacts to be accumulated. Of the annual export volume VTB Fund Ventures CEF of RVC-backed portfolio for HR(V)I companies comes to Subsidiary funds: S.Group Ventures CEF for HR(V)I PFI RVC, Biofund RVC and Infrafund RVC Ivan Afanasov General Director of NAPOLI LLC 43 52
1 Data accrued from the beginning of RVC operations. 2 Excluding the projects of funds in foreign jurisdiction.
34 VALUE OF FUNDAMENTALS www.rusventure.ru/en RVC ANNUAL REPORT 2015 35 RVC IN 2015 IN FIGURES OPENING ADDRESS BY THE RUSSIAN VENTURE PRIORITIES OF RVC'S CREATION OF THE NTI INVESTMENT ACTIVITY ACTIVITIES FOR THE EXECUTION OF INSTRUCTIONS FINANCIAL RESULTS CORPORATE SOCIAL RESPONSIBILITY APPENDIXES GENERAL DIRECTOR CAPITAL MARKET ACTIVITY FOR 2015-2016 PROJECT OFFICE DEVELOPMENT OF AN OF THE GOVERNMENT FOR 2015 GOVERNANCE AND SUSTAINABLE INNOVATION ECOSYSTEM REGARDING THE DEVELOPMENT DEVELOPMENT OF INNOVATION
SUBSIDIARY FUNDS VENTURE CAPITAL CIVIL TECHNOLOGIES MIC LLC RVC SEED FUND LLC (RVC SEED FUND) (CIVIL TECHNOLOGIES MIC)
RVC Seed Fund LLC (RVC Seed Fund) was established in October By the end of 2015, five microfunds had been created with participation Civil Technologies Military Industrial Complex (Civil Technologies MIC) of high-technology instruments, special purpose microelectronics 2009. of the RVC Seed Fund in the form of investment partnership was established in April 2013. It has an active investment term of 7 and micromechanics, visualization tools, high-precision navigation agreements: Seed Fund ACP, Venture Fund Accelerator, Softline Seed years. systems, new materials, embedded systems (software, intelligent The fund participants are RVC OJSC (99.9 %) and the Foundation Fund, High Technologies Seed Fund, and Life Sciences Seed Fund1. systems and control systems), welding, soldering and heat treatment for Assistance to Small Innovative Enterprises in the Scientific and The participants of the fund are RVC OJSC (35 %), Ramenskoye Design technologies, etc. Technical Sphere (0.1 %). The target size of the fund is RUB1,982 million. Bureau OJSC (10 %) and the Foundation for the Development of Science, Innovation and Technology (5 %). Civil Technologies MIC LLC The target size of the fund is RUB1 billion. The Fund is focused on investing in innovative Russian companies with The actual fund size as of the end of 2015 was RUB1,982 million. holds 50 %. high growth potential in Russian and foreign markets. The actual fund size as of the end of 2015 was RUB500 million. The target size of RVC OJSC participation is RUB1,980 million. The fund is managed by the team at RVC Seed Fund LLC, which acts as the sole executive body of the fund. The target size of RVC OJSC participation is RUB500 million.
The fund is geared towards investment in industrial cluster projects at the seed stage that have high potential growth capitalization in the short and medium terms. These are primarily projects in the sphere
INVESTMENT TRENDS (USING DATA SINCE THE ESTABLISHMENT OF THE FUND) INVESTMENT TRENDS (USING DATA SINCE THE ESTABLISHMENT OF THE FUND)
Indicator As of 31.12.2011 As of 31.12.2012 As of 31.12.2013 As of 31.12.2014 As of 31.12.2015 Indicator As of 31.12.2011 As of 31.12.2012 As of 31.12.2013 As of 31.12.2014 As of 31.12.2015 Number of project companies in the fund 25 46 56 64 62 Number of project companies in the fund – – – 3 4 Actual size of RVC OJSC equity in the fund, RUB 1,980.00 1,980.00 1,980.00 1,980.00 1,980.00 Actual size of RVC OJSC equity in the fund, RUB – – 350.00 350.00 350.00 million million Amount of invested funds (without microfunds), 199.05 565.00 790.00 902.36 1,045.95 Amount of invested funds, RUB million – – – 63.70 88.00 RUB million Approved investments, RUB million – – 30.00 215.80 234.68 Approved investments (without microfunds), 651.60 1,081.70 1,311.50 1,496.60 1,545.94 Number of exit transactions from previously – – – – 1 RUB million invested companies Number of exit transactions from previously – 1 6 11 14 invested companies
MAJOR MILESTONES OF THE REPORTING YEAR: MAJOR MILESTONES OF THE REPORTING YEAR:
‣‣Life Science Seed Fund was created with RVC Seed Fund capital in the form of an investment partnership agreement. ‣‣The fund made an exit with the Racer project (innovative hybrid STV (TV equipment/media players)) for realization of an options scheme with ‣‣The portfolio company RVC Seed Fund NAPOLI initiated sales of HeatoPran wound dressings in 40 pharmacies in Moscow, St. Petersburg, Dune HD Rus. Krasnoyarsk, Rostov-on-Don, and Crimea. This product were earlier only available to medical establishments. The product is used by more ‣‣The Civil Technology MIC fund’s portfolio company MaxTelCom developed the first Russian apparatus for assembling optical fibers and signed than 50 hospitals and polyclinics in Moscow. an agreement for strategic cooperation with Vologda Optical Mechanics Factory, one of the largest Russian optical equipment enterprises. ‣‣Capitalization of two microfunds that are backed by RVC Seed Fund: Softline Seed Fund and High Technologies Seed Fund. The funds were capitalized for RUB102 million each, with RVC Seed Fund raising 75 % of funding and private investors contributing the remaining 25 %.
Further information about the fund: http://www.rusventure.ru/ru/investments/fpi/index.php Further information about the fund: http://www.rusventure.ru/ru/investments/opk/
1 Financial indicators of the operations of microfunds created with participation of RVC Seed Fund are given in the table "Funds Established in the Form of Investment Partnership Agreement".
36 VALUE OF FUNDAMENTALS www.rusventure.ru/en RVC ANNUAL REPORT 2015 37 RVC IN 2015 IN FIGURES OPENING ADDRESS BY THE RUSSIAN VENTURE PRIORITIES OF RVC'S CREATION OF THE NTI INVESTMENT ACTIVITY ACTIVITIES FOR THE EXECUTION OF INSTRUCTIONS FINANCIAL RESULTS CORPORATE SOCIAL RESPONSIBILITY APPENDIXES GENERAL DIRECTOR CAPITAL MARKET ACTIVITY FOR 2015-2016 PROJECT OFFICE DEVELOPMENT OF AN OF THE GOVERNMENT FOR 2015 GOVERNANCE AND SUSTAINABLE INNOVATION ECOSYSTEM REGARDING THE DEVELOPMENT DEVELOPMENT OF INNOVATION
BIOPHARMACEUTICAL INVESTMENTS FUND RVC (BIOFUND RVC) INFASTRUCTURE INVESTMENTS FUND (INFRAFUND RVC)
Biopharmaceutical Investments RVC LLC (Biofund RVC) was The target size of the fund is RUB1,500 million. Infrastructure Investments RVC LLC (Infrafund RVC) was established The target size of the fund is RUB2,000 million. established in early 2011. in January 2011. The actual fund size as of the end of 2015 was RUB800 million. The actual fund size as of the end of 2015 was RUB1,100 million. Participants of the fund are RVC OJSC (96.25 %) and Venture Innovation The participants of Infrafund RVC are RVC OJSC (99.91 %) and SME Fund (3.75 %). The target size of RVC OJSC participation is RUB1,470 million. Bank OJSC (0.09 %). The target size of RVC OJSC participation is RUB1,999 million.
The investment fund’s focus is on innovative biopharmaceutical and The strategic objective of Infrafund RVC is the development of service companies that provide laboratory, information analysis infrastructure that supports the whole cycle of innovation in several and consulting contract services to companies in the biotechnology, directions, from catalyzing to commercialization through to successful pharmaceuticals and medical industries. incorporation into existing technological chains. Infrafund RVC invests in commercially prospective companies that offer a wide spectrum of services to participants of innovation markets and are located in regions with a developed scientific research and educational base.
INVESTMENT TRENDS (USING DATA SINCE THE ESTABLISHMENT OF THE FUND) INVESTMENT TRENDS (USING DATA SINCE THE ESTABLISHMENT OF THE FUND)
Indicator As of 31.12.2011 As of 31.12.2012 As of 31.12.2013 As of 31.12.2014 As of 31.12.2015 Indicator As of 31.12.2011 As of 31.12.2012 As of 31.12.2013 As of 31.12.2014 As of 31.12.2015 Number of project companies in the fund – 4 8 13 15 Number of project companies in the fund 1 9 15 21 25 Actual size of RVC OJSC equity in the fund, RUB 470.00 470.00 770.00 770.00 770.00 Actual size of RVC OJSC equity in the fund, RUB 499.00 499.00 1099.00 1099.00 1099.00 million million Amount of invested funds, RUB million – 16.74 112.79 314.86 494.99 Amount of invested funds, RUB million 0.50 136.00 212.00 297.00 435.00 Approved investments, RUB million – 336.94 769.11 978.11 724.291 Approved investments, RUB million 267.00 301.00 675.00 987.00 1,185.40 Number of exit transactions from previously – – – – – Number of exit transactions from previously – – – 2 5 invested companies invested companies
MAIN MILESTONES OF THE REPORTING YEAR MAIN MILESTONES OF THE REPORTING YEAR
‣‣National BioService, a portfolio company of Biofund RVC, is the first commercial biobank in Russia, having attracted investment from a private ‣‣Infrafund RVC invested in the establishment of Chelyabinsk IT Park in the AMT&C group of engineering companies that work on implementing investor in the second round for large-scale activities and nurturing export potential. solutions based on new magnetic technologies in various sectors of industry. ‣‣PrimeBioMed is a portfolio company of Biofund RVC, which produces innovative nanosystems of monoclonal antibodies for diagnosis of cancers ‣‣An agreement was signed between RVC and the Belarusian Innovation Fund establishing the Russian-Belarusian Fund for Venture Capital and other serious diseases. The company passed through quality management system certification in accordance with ISO 13485. This is under the management of Infrafund RVC on a parity basis. The proposed target size of the fund is around RUB1.4 billion. official confirmation that its operational procedures, quality of products, processes and systems correspond to international requirements and ‣‣Infrafund RVC invested in the launch of the large-scale project Open Masters, which is aimed at supporting creative sectors. Investment was additional voluntary standards. also made in the Perm-based company EKAT, which develops and implements projects for high-tech solutions in the area of cleaning and ‣‣VivaRus, a portfolio company of Biofund RVC, became the official supplier of laboratory animals for the company Charles River Laboratories sterilization of air in industries such as chemicals, oil, agriculture and others. Inc.2 in Russia and has initiated commercial supply to Russian clients. ‣‣ExoAthlete, a portfolio company of Biofund RVC, has developed and produces medical exoskeletons for rehabilitation of patients with paralysis of the lower limbs, and has completed its first commercial sale.
Further information about the fund: http://www.rusventure.ru/ru/investments/biofund/about.php Further information about the fund: http://www.rusventure.ru/ru/investments/infrafund/about/
1 Including approved transactions for which the decision was subsequently taken not to execute the financing. 2 Charles River Laboratories, Inc. — US pharmaceutical corporation providing a wide range of preclinical and clinical laboratory services for pharmaceutical products. Consumers of the company's services are the world's largest pharmaceuticals manufacturers, as well as educational institutions and research centers of different countries.
38 VALUE OF FUNDAMENTALS www.rusventure.ru/en RVC ANNUAL REPORT 2015 39 RVC IN 2015 IN FIGURES OPENING ADDRESS BY THE RUSSIAN VENTURE PRIORITIES OF RVC'S CREATION OF THE NTI INVESTMENT ACTIVITY ACTIVITIES FOR THE EXECUTION OF INSTRUCTIONS FINANCIAL RESULTS CORPORATE SOCIAL RESPONSIBILITY APPENDIXES GENERAL DIRECTOR CAPITAL MARKET ACTIVITY FOR 2015-2016 PROJECT OFFICE DEVELOPMENT OF AN OF THE GOVERNMENT FOR 2015 GOVERNANCE AND SUSTAINABLE INNOVATION ECOSYSTEM REGARDING THE DEVELOPMENT DEVELOPMENT OF INNOVATION
FUNDS WITH FOREIGN JURISDICTION
RUSSIAN VENTURE CAPITAL I LP RVC IVFRT LP
RVC OJSC's subsidiary Russian Venture Capital I LP was registered The fund’s investment focus is on alternative energy technologies, RVC OJSC's subsidiary Russian Ventury Capital II LP was established The fund’s investment focus is inclusion into leading international late in the United Kingdom in 2010. It was established with the aim of microelectronics and high-performance computing. in 2011 and was later renamed RVC IVFRT LP when a second investor stage venture funds and co-investment in technology assets that are in transferring technology from the global market to Russia by acquiring joined (Investment and Venture Fund of the Republic of Tatarstan NGO). the interests of the Russian Federation. securities or stakes in foreign innovation companies and funds, The target size of the fund is USD45.69 million. Both investors have the status of a partner with limited liability (LP). including by membership in venture investor consortia (alliances) or The fund is managed by the company Volga Venture Management The target size of the fund is USD40 million. co-investment deals with leading venture funds. The actual fund size as of the end of 2015 was USD45.69 million. Inc., which is a joint venture company incorporated under the laws of the state of Delaware (USA) and owned by RVC USA Inc. (subsidiary of The actual fund size as of the end of 2015 was USD32.23 million. The company Russian Venture Asset Management Ltd (UK) is a The target size of RVC OJSC participation was USD45.69 million. RVC) and the Investment and Venture Fund of the Republic of Tatarstan subsidiary of RVC and acts as managing partner of the fund Russian NGO. The target size of RVC OJSC participation is USD25 million. Venture Capital I LP. RVC is the only investor of the partnership with limited liability (Limited Partner, LP).
INVESTMENT TRENDS (USING DATA SINCE THE ESTABLISHMENT OF THE FUND) INVESTMENT TRENDS (USING DATA SINCE THE ESTABLISHMENT OF THE FUND)
Indicator As of 31.12.2011 As of 31.12.2012 As of 31.12.2013 As of 31.12.2014 As of 31.12.2015 Indicator As of 31.12.2011 As of 31.12.2012 As of 31.12.2013 As of 31.12.2014 As of 31.12.2015 Number of project companies in the fund 1 3 3 3 3 Number of project companies in the fund 3 4 4 4 4 Actual size of RVC OJSC equity in the fund, USD 10.25 33.25 38.35 38.70 45.69 Actual size of RVC OJSC equity in the fund, USD 11.56 12.56 12.56 13.84 13.84 million million Amount of invested funds, USD million 10.00 33.00 38.00 38.35 45.35 Amount of invested funds, USD million 11.53 17.69 23.90 28.45 32.20 Approved investments, USD million 10.00 33.00 38.00 38.35 45.35 Approved investments, USD million 25.00 35.00 35.00 35.00 35.00 Number of exit transactions from previously – – – – – Number of exit transactions from previously – – – – – invested companies invested companies
Further information about the fund: www.rusventure.ru/ru/investments/foreign_funds/capital_i.php Further information about the fund: www.rusventure.ru/ru/investments/foreign_funds/rvcivfrt.php
40 VALUE OF FUNDAMENTALS www.rusventure.ru/en RVC ANNUAL REPORT 2015 41 RVC IN 2015 IN FIGURES OPENING ADDRESS BY THE RUSSIAN VENTURE PRIORITIES OF RVC'S CREATION OF THE NTI INVESTMENT ACTIVITY ACTIVITIES FOR THE EXECUTION OF INSTRUCTIONS FINANCIAL RESULTS CORPORATE SOCIAL RESPONSIBILITY APPENDIXES GENERAL DIRECTOR CAPITAL MARKET ACTIVITY FOR 2015-2016 PROJECT OFFICE DEVELOPMENT OF AN OF THE GOVERNMENT FOR 2015 GOVERNANCE AND SUSTAINABLE INNOVATION ECOSYSTEM REGARDING THE DEVELOPMENT DEVELOPMENT OF INNOVATION
FUNDS ESTABLISHED IN THE FORM OF CLOSED-END FUNDS (CEF)
At the end of the reporting year, RVC held a stake in seven Russian CEFs managed by professional management companies. RVC’s share in the authorized capital of each of the closed-end venture capital funds at the end of 2015 amounted to 49 %. Representatives from the company sit on the investment committees of the CEFs in an advisory capacity.
Fund name Fund's investment focus Management company Target size of fund, Actual size of fund Target size of RVC Actual size of RVC Number of project Approved Amount of RUB million as of 31.12.2015, investment in the equity in the fund companies of the investments invested funds RUB million fund, RUB million as of 31.12.2015, fund as of 31.12.2015 as of 31.12.2015, as of 31.12.2015, RUB million RUB million RUB million Bioprocess Capital Ventures CEF for Investment in research in the area of living Management Company 3,000.00 3,000.00 1,470.00 1,470.00 9 3,632.54 2,848.37 HR(V)I systems and fine chemistry Bioprocess Capital Formation completed on December Partners 19, 2007 VTB Venture Fund CEF for HR(V)I Investment in information technologies, VTB Capital Asset 3,061.00 3,061.00 1,499.89 1,499.89 11 2,019.06 2,008.06 Formation completed on September telecommunication, innovative biotechnology Management CJSC 21, 2007 projects, energetics and energy saving, transport, technologies of the rational use of natural resources, as well as in nanotechnology New Technologies CEF for HR(V)I Investment in innovative projects related to the Management Company 612.20 612.20 299.98 299.98 2 350.00 330.00 Formation completed on January 31, development and extraction of subsoil resources April Capital JSC 2009 Maxwell Biotech CEF for HR(V)I Investment in innovative projects related to high- Maxwell Asset 1,224.40 1,224.40 599.96 599.96 9 380.80 295.55 Formation completed on December tech medicine and pharmaceuticals Management LLC 19, 2008 Leader Innovations CEF for HR(V)I Investment in technological innovations in the Leader CJSC 3,000.00 2,100.00 1,470.00 1,029.00 12 1,764.75 1,236.30 Formation completed on December power industry and energy saving, chemistry and 19, 2008 petro chemistry, new materials, as well as IT and telecommunications S-Group Ventures CEF for HR(V)I Investment in IT, solutions in the field of clean Management Company 1,800.00 1,800.00 882.00 882.00 8 1,604.73 1,602.93 Formation completed on December energy and new energy sources, material science, S-Group Capital 15, 2008 nanotechnology and biotechnology Management LLC Innovative Solutions CEF for HR(V)I Investment in IT, the power industry and energy Management Company 1,800.00 1,800.00 882.00 882.00 5 765.85 633.34 Formation completed on December saving, biotechnology and medical technology and Innovative Solutions CJSC 19, 2008 development of new materials
42 VALUE OF FUNDAMENTALS www.rusventure.ru/en RVC ANNUAL REPORT 2015 43 RVC IN 2015 IN FIGURES OPENING ADDRESS BY THE RUSSIAN VENTURE PRIORITIES OF RVC'S CREATION OF THE NTI INVESTMENT ACTIVITY ACTIVITIES FOR THE EXECUTION OF INSTRUCTIONS FINANCIAL RESULTS CORPORATE SOCIAL RESPONSIBILITY APPENDIXES GENERAL DIRECTOR CAPITAL MARKET ACTIVITY FOR 2015-2016 PROJECT OFFICE DEVELOPMENT OF AN OF THE GOVERNMENT FOR 2015 GOVERNANCE AND SUSTAINABLE INNOVATION ECOSYSTEM REGARDING THE DEVELOPMENT DEVELOPMENT OF INNOVATION
FUNDS ESTABLISHED IN THE FORM OF INVESTMENT PARTNERSHIP AGREEMENT
Fund name Fund's investment focus Management company Target size of fund, Actual size of fund Target size of RVC Actual size of RVC Number of project Approved Amount RUB million as of 31.12.2015, investment in the equity in the fund companies of the investments of invested funds RUB million fund, RUB million as of 31.12.2015, fund as of 31.12.2015 as of 31.12.2015, as of 31.12.2015, RUB million RUB million RUB million RusBioVentures IPA Investment in venture unique projects in the relatively RusBioVentures LLC 2,070.70 389.17 1,000.00 187.94 2 293.63 293.63 Established 2004 early stages, RusBioVentures LLC having a potential of a multiple capitalization growth; in venture projects in the late stages or with a vital cycle of a shorter duration, for example, bio-IT, and in less risk projects, already at the market or close to the the market, including syndicated and/or areal transactions with the world’s leading venture companies Finematica Air-cosmic IPA Fund Investment in advanced development in aerospace Finematica LLC 1,515.00 – 750.00 – – – – Established 2014 engineering and in related sectors Da Vinci Pre-IPO IPA Fund Exit support for Russian technology companies at a Da Vinci Capital 3,788.79 93.44 1,500.00 36.99 – – – Established 2015 mature stage of development in Russian and foreign Management GP LLC fund markets North Energy IPA Fund I Seed Projects in the early stages in the sphere of energy North Energy Ventures 958.648 23.942 555.00 13.86 1 0.86 0.86 Established 2015 efficiency, renewable energy sources and rational LLC use of natural resources Phystech Ventures IPA II Companies at seed stage that are implementing Phystech Ventures LLC 900.00 – 600.00 – – – – Established 2015 projects in NTI directions such as new materials, additive technologies, sensors, new energy sources, energy efficiency, big data, IT security, and decentralized financial systems Softline Seed Fund IPA Early stage IT projects Softline Internet Projects 136.00 34.00 100.00 25.00 5 39.00 29.45 Established 2013 LLC High Technologies Seed Fund IPA Projects at the pre-seed and seed stages of TONAP Venture LLC 133.60 33.40 100.00 25.00 3 31.46 11.98 Established 2013 development in the real economy, including regional projects Seed Fund ACP IPA Companies developing software for the B2B segment Management Company 33.40 33.40 25.00 25.00 3 24.00 – Established 2014 and hardware-software complexes ACP LLC Venture Fund Accelerator IPA Innovative companies in the area of Hardware 2.0: DI Group LLC 133.40 33.40 100.00 25.00 4 29.75 10,85 Established 2014 wearable, IoT, medical Seed Fund in Area of Life Systems Innovative companies in the area of pharmaceuticals, KSI Ventures LLC 33.40 27.74 25.00 20.76 4 26.40 – Established 2015 medical equipment and agro-biotechnologies
44 VALUE OF FUNDAMENTALS www.rusventure.ru/en RVC ANNUAL REPORT 2015 45 The programs descriptions include the major projects only. ACTIVITIES FOR THE DEVELOPMENT Consolidated results of the program may vary from the joint results of its projects. OF AN INNOVATION ECOSYSTEM
Investor Development Program 49 Program for the Globalization of the Russian Innovation Industry 55 Program for Promoting Innovation Activities 59 Program for the Development of the Innovation Ecosystem 65 International Projects for Developing an Innovation Ecosystem 73 RVC IN 2015 IN FIGURES OPENING ADDRESS BY THE RUSSIAN VENTURE PRIORITIES OF RVC'S CREATION OF THE NTI INVESTMENT ACTIVITY ACTIVITIES FOR THE EXECUTION OF INSTRUCTIONS FINANCIAL RESULTS CORPORATE SOCIAL RESPONSIBILITY APPENDIXES GENERAL DIRECTOR CAPITAL MARKET ACTIVITY FOR 2015-2016 PROJECT OFFICE DEVELOPMENT OF AN OF THE GOVERNMENT FOR 2015 GOVERNANCE AND SUSTAINABLE INNOVATION ECOSYSTEM REGARDING THE DEVELOPMENT DEVELOPMENT OF INNOVATION
ACTIVITIES FOR THE DEVELOPMENT Without the initiatives of RVC, the venture capital industry would OF AN INNOVATION ECOSYSTEM be an unnoticeable presence. In my view, RVC can be counted as one of few initiatives of the Government of the Russian INVESTMENT IN VENTURE CAPITAL MARKETS IN PUBLIC-PRIVATE PARTNERSHIPS IS A NECESSARY, Federation that is effective and consistent. Thanks to the efforts BUT NOT SUFFICIENT, CONDITION FOR THE SUSTAINABLE FUNCTIONING OF AN INNOVATION of RVC in 2015, very important projects were realized to raise ECOSYSTEM. WITH REGARDS TO THE AIMS AND OBJECTIVES OF THE STRATEGY FOR INNOVATION the expertise of participants of the venture market in creation DEVELOPMENT OF THE RUSSIAN FEDERATION FOR THE PERIOD UNTIL 2020, RVC IS ALSO FORMING of corporate funds, training of business-angels in the regions, NON-FINANCIAL INSTRUMENTS. and more. These activities should help turn venture business in Russian into from an exclusive phenomenon into a mass one. The network of venture capital investors, the expert community, The foundation of the company’s unique position as a center of scientific research institutions, universities, accelerators, and other expertise is the development and market launch of integrated products infrastructure organizations, are the foundation on which RVC’s for federal executive bodies, subjects of the Russian Federation, higher program activity is built. Guiding principles within this activity are: the educational establishments and science centers, and corporations growth of competencies and the increased efficiency of cooperation and enterprises. This enables the formation of effective innovative with participants of the venture capital market, the popularization of ecosystems in the interests of key stakeholders. Aleksandr Galitsky technological enterprise, support for regional infrastructure, and also Co-Founder and Managing partner of Almaz Capital Partners assisting the globalization of the Russian innovation industry. In the implementation of the NTI, there is a special significance for the development of an innovation infrastructure. With this aim Ten years of experience in the development of Russia’s venture in mind, RVC organizes and supports projects and events aimed industry and supporting technological enterprise has strengthened at improving the mechanisms for the security and protection of RVC’s role as a center of expertise. This facilitates the formation of intellectual property, and supports the creation of systems for industry In order to increase the competitiveness of the Russian economy, effective cooperation between the individual elements of the innovation standards, legislation for new markets, scientific infrastructure and fast growth of small high-tech companies is necessary and, to ecosystem, by promoting best industry practices, optimizing, the development of competencies. ensure this, the practice and experience of experts is important. integrating and scaling-up mechanisms accessible on the market, and also by supporting the emergence of new support instruments for In the regions there are few enterprises for innovators and, high-tech business. as a result, for enterprises starting out there are not enough business competencies or information for the start of the business. Therefore it is hard to overestimate the significance of INVESTOR DEVELOPMENT PROGRAM RVC’s educational projects, for example the regional sessions of practical consultation. Participants learn about creating THIS PROGRAM IS FOCUSED ON THE DEVELOPMENT OF VENTURE INVESTORS AND BUSINESS value for the business, patenting, effective technological sales, ANGELS, AS WELL AS SUPPORTING THE EMERGENCE AND FUTURE ACTIVITIES OF CORPORATE and promoting innovative products. Obtaining feedback is an VENTURE FUNDS IN RUSSIA. important aspect, and also the opportunity to establish useful PROGRAM AIMS: contacts. With increased interest of private investors towards ‣‣Development of the competencies of participants of the Russian venture capital market; innovations, specific attention in the program is given to the block ‣‣Organization and support of platforms where investors from various countries (business angels, representatives of venture funds and corporations) for business-angels starting out, which allows them to immerse can exchange experience; ‣‣Development of cooperation between venture investors and entrepreneurs with projects that attract investment. themselves in the specificities of running a business, prepare for ‣‣Increasing the transparency and accessibility of the venture capital market. the first transactions and avoid the common mistakes. KEY RESULTS: ‣‣More than 2,000 participants from 35 regions of the Russian Federation attended educational and consultancy events, including: ––164 business angels; ––202 venture funds; ––318 corporations; Ilya Tikhonov ‣‣Six unique platforms for exchanging experience between Russian venture investors, supporting their communication with enterprise in Moscow Deputy Director of the Fund for Cooperation for Development of Venture Investment and other regions of the Russian Federation; in Small Enterprises in the Science and Technology Sphere in Nizhegorod oblast ‣‣Five studies into the venture capital market established with RVC support.
48 VALUE OF FUNDAMENTALS www.rusventure.ru/en RVC ANNUAL REPORT 2015 49 RVC IN 2015 IN FIGURES OPENING ADDRESS BY THE RUSSIAN VENTURE PRIORITIES OF RVC'S CREATION OF THE NTI INVESTMENT ACTIVITY ACTIVITIES FOR THE EXECUTION OF INSTRUCTIONS FINANCIAL RESULTS CORPORATE SOCIAL RESPONSIBILITY APPENDIXES GENERAL DIRECTOR CAPITAL MARKET ACTIVITY FOR 2015-2016 PROJECT OFFICE DEVELOPMENT OF AN OF THE GOVERNMENT FOR 2015 GOVERNANCE AND SUSTAINABLE INNOVATION ECOSYSTEM REGARDING THE DEVELOPMENT DEVELOPMENT OF INNOVATION
THE PROJECT FOR A SERIES OF EDUCATIONAL EVENTS FOR CORPORATE REPRESENTATIVES THE PROJECT FOR THE REGIONAL SESSION OF PRACTICAL CONSULTANCY ON DEVELOPING WITHIN THE FRAMES OF RAISING QUALIFICATION ON “THE MANAGEMENT OF CORPORATE SKILLS FOR CREATING AND ATTRACTING INVESTMENT INTO STARTUPS VENTURE FUNDS”
PROJECT AIMS: PROJECT RESULTS: PROJECT AIMS: PROJECT RESULTS: ‣‣Raising the key competencies and skills of ‣‣ Creating of a system of events that bring together participants, top-managers at corporations overseeing representatives of An educational methodology educational and consultancy activity, which is necessary of whom innovative development on questions corporations1 handbook on the theme of for generating and successfully running innovative 2,000 relating to the portfolio management of 36 took part in the program for creating corporate venture funds companies; corporate venture capital and using “open raising the qualification of and management of innovation ‣‣ Integration of regional infrastructure facilities (clusters, innovation” instruments. “management of corporate development for company technoparks, business incubators, engineering centers) venture funds”; managers. into the region’s integrated innovation ecosystem. 100 were investors 50 were mentors PROJECT PARTNER: ‣‣The Institute of Innovation Management at the National Research University Higher technology companies PROJECT PARTNERS: School of Economics. received consultations. ‣‣LOGA Group Company; 900 ‣‣Moscow Technological Institute.
INITIATIVE FOR INCREASING THE LEVEL OF EXPERTISE OF VENTURE INVESTORS OPERATING IN THE RUSSIAN VENTURE CAPITAL MARKET THE PROJECT FOR A SERIES OF EDUCATIONAL EVENTS FOR POTENTIAL THE PROJECT PROVIDED A SERIES OF EDUCATIONAL EVENTS AIMED AT INCREASING THE AND ALREADY OPERATING BUSINESS ANGELS IN MOSCOW AND REGIONS PROFESSIONALISM OF REPRESENTATIVES FROM THE STARTUP COMMUNITY OF THE RUSSIAN FEDERATION
PROJECT AIMS: PROJECT RESULTS: PROJECT AIMS: PROJECT RESULTS: ‣‣Increasing the qualifications of technological entrepreneurs within ‣‣Increasing the level of expertise of business angels the frames of educational and accelerator programs. operating in the Russian venture capital market. regional startups private investors gained access to unique participated in educational 800 lectures about technological 250 events. PROJECT PARTNERS: enterprise, experts and ‣Taiga Startup School accelerator program; PROJECT PARTNERS: ‣ mentors; ‣‣Factor Ural District accelerator program; ‣‣Union of Organizations of Business Angels (St. Petersburg); ‣‣RusOil Centure accelerator program; ‣‣Business Angels of the Urals (Yekaterinburg); participants ‣‣Accelerator Druzhba (Friendship) Hardware accelerator program; ‣‣Business Angels of Siberia (Novosibirsk); from support startup schools ‣‣Expedition StartUp Sabantuy educational program; ‣‣Regional Innovation Center NP (Samara); 600 applied to participate in ‣‣Initium accelerator program; ‣‣SmartHub (Kaliningrad). the federal GenerationS ‣IT-Start educational program. ‣ accelerator.
1 Educational program included, among the rest, representatives of the Russian Railways, KLA, Kaspersky Lab, MTS, Alfa-Bank, Rosatom, the Energy Without Borders Foundation and Junona Holding.
50 VALUE OF FUNDAMENTALS www.rusventure.ru/en RVC ANNUAL REPORT 2015 51 RVC IN 2015 IN FIGURES OPENING ADDRESS BY THE RUSSIAN VENTURE PRIORITIES OF RVC'S CREATION OF THE NTI INVESTMENT ACTIVITY ACTIVITIES FOR THE EXECUTION OF INSTRUCTIONS FINANCIAL RESULTS CORPORATE SOCIAL RESPONSIBILITY APPENDIXES GENERAL DIRECTOR CAPITAL MARKET ACTIVITY FOR 2015-2016 PROJECT OFFICE DEVELOPMENT OF AN OF THE GOVERNMENT FOR 2015 GOVERNANCE AND SUSTAINABLE INNOVATION ECOSYSTEM REGARDING THE DEVELOPMENT DEVELOPMENT OF INNOVATION
INITIATIVE FOR DEVELOPING A SYSTEM FOR THE EXCHANGE OF EXPERIENCE AND SUPPORT OF PROFESSIONAL CONTACTS FOR VENTURE INVESTORS OPERATING IN THE RUSSIAN VENTURE CAPITAL MARKET THE PROJECT FOR DEVELOPING INSTRUMENTS FOR THE EXCHANGE THE PROJECT FOR SUPPORTING INDUSTRY PLATFORMS FOR THE EXCHANGE OF OF EXPERIENCE AND PROMOTING BEST PRACTICES IN CORPORATE VENTURE EXPERIENCE BETWEEN INVESTORS AT VARIOUS STAGES INVESTMENTS AND “OPEN INNOVATIONS”
PROJECT AIM: PROJECT RESULTS: PROJECT AIM: PROJECT RESULTS: ‣‣Creating an industry platform for exchanging ‣‣Promoting the successful experience of experience between business angels, venture funds and managing corporate venture capital and expert sessions on the issues A methodological handbook representatives of corporations. events participants. using instruments of “open innovations” of management of innovation for managing innovation in three regions by exchanging professional opinions, 5 of the Russian 400 7 activity and implementing activities and work with external developing horizontal links between Federation; models of “open innovations”; and internal developers in PROJECT PARTNERS: corporate participants of the venture capital Russian and international ‣‣Pulsar Venture Capital; market, and broadening the network of corporations and banks1. ‣‣Preqveca; their professional contacts. ‣‣RVCA; ‣‣Rusbase; ‣‣Firrma. PROJECT PARTNER: ‣‣The Club of Directors for Science and Innovations NP (iR&Dclub). THE PROJECT FOR SUPPORTING THE III MOSCOW CORPORATE VENTURE SUMMIT
PROJECT AIM: PROJECT RESULTS: ‣‣Supporting communication platforms that bring together INITIATIVE TO INCREASE THE TRANSPARENCY OF THE RUSSIAN VENTURE CAPITAL MARKET representatives of corporations, government bodies, participants, of which universities and development institutes, for the discussion 215 participants were of issues related to the corporate venture capital market. THE PROJECT TO SUPPORT ANALYTICAL PROJECTS OF THE VENTURE CAPITAL INDUSTRY 792 representatives of corporations and venture funds.
PROJECT AIM: PROJECT RESULTS: PROJECT PARTNER: ‣‣Increasing the transparency and ‣‣The Club of Directors for Science and Innovations NP accessibility of the venture capital market. (iR&Dclub). representatives of the studies based on a unified innovation venture ecosystem methodology developed by OAG; 60 engaged in the work of the Joint 3 PROJECT PARTNERS: Analytical Group (OAG)2 of RVCA ‣‣RVCA; during the year; CLOSED CLUB FOR BUSINESS ANGELS ‣‣Venture Innovation Fund NO.
A database of public venture PROJECT AIMS: PROJECT RESULT: transactions used as a ‣‣Increasing the level of expertise of private venture supporting instrument for investors operating in Russia; business angels participated analytical projects. ‣‣The exchange of experience between investors; in the Closed Club’s events. ‣‣Increasing reliability of business angel investments by 152 using the experience of successful investors.
PROJECT PARTNER: 1 Methodological handbook for innovation managers and magisters for innovations management programs in corporations. ‣‣Union of Organization of Business Angels (St. Petersburg). 2 Joint Analytical Group of RVCA, supported by RVC, is involved in updating the uniform procedure for the collection and analysis of the key parameters of the Russian venture capital funds operations, as well as development of a public database of venture capital transactions.
52 VALUE OF FUNDAMENTALS www.rusventure.ru/en RVC ANNUAL REPORT 2015 53 RVC IN 2015 IN FIGURES OPENING ADDRESS BY THE RUSSIAN VENTURE PRIORITIES OF RVC'S CREATION OF THE NTI INVESTMENT ACTIVITY ACTIVITIES FOR THE EXECUTION OF INSTRUCTIONS FINANCIAL RESULTS CORPORATE SOCIAL RESPONSIBILITY APPENDIXES GENERAL DIRECTOR CAPITAL MARKET ACTIVITY FOR 2015-2016 PROJECT OFFICE DEVELOPMENT OF AN OF THE GOVERNMENT FOR 2015 GOVERNANCE AND SUSTAINABLE INNOVATION ECOSYSTEM REGARDING THE DEVELOPMENT DEVELOPMENT OF INNOVATION
PROGRAM FOR THE GLOBALIZATION Small and medium-sized high-tech companies do not OF THE RUSSIAN INNOVATION INDUSTRY have enough marketing data, or cooperation in the promotion of goods and services abroad and in the search THE PROGRAM IS AIMED AT COLLECTING AND STUDYING CURRENT INFORMATION ABOUT THE MOST for potential partners and consumers. The support SUCCESSFUL INTERNATIONAL INNOVATION MARKETS, THE DEVELOPMENT OF PARTNERSHIPS instruments offered by RVC, such as organizing business WITH THEIR KEY PLAYERS, AND THE INCORPORATION OF PRODUCTS AND SERVICES OF RUSSIAN missions and roadshows, and selection of partners, TECHNOLOGY COMPANIES IN GLOBAL VALUE CHAINS. THESE MEASURES, AS WELL AS THE STRATEGIC allows for strengthening of the company’s marketing PROJECT FOR SUPPORTING THE EXPORT OF INNOVATION PRODUCTS AND SERVICES, ARE AIMED AT strategy. <…> The main indicators of the effectiveness of STIMULATING THE EXTERNAL ECONOMIC ACTIVITY OF RUSSIAN INNOVATION COMPANIES, AND ABOVE these events are of course the growth in export volumes ALL, ON INCREASING THE VOLUMES OF HIGH-TECH EXPORTS. of goods and services, widening of the range of foreign partners, presence in priority markets, and also an RESULTS: increased level of awareness of Russian companies. ‣‣USD 44 million in annual exports of RVC-backed portfolio funds, implemented with the company’s assistance; ‣‣169 perspective Russian companies, including from RVC’s fund portfolio, received support on issues of exits onto foreign markets and growth in global technological chains; ‣‣15 analytical reports about foreign technology markets.
Irina Mikheeva Director of RadTech Association THE PROJECT FOR EXPORTATION SUPPORT FOR RUSSIAN TECHNOLOGY COMPANIES
From the initiative and methodological support of the Ministry of Economic Development of the Russian Federation, RVC developed a project that enables increased export volumes of high-tech products from Russian companies that have been included in technological platforms and industry business associations through selection on a competitive basis. The support program is considered as RVC co-financing marketing, Our company participated in a range of events organized consultancy and educational events, aimed at raising the competencies of Russian companies and members of industry associations on issues within the program for supporting exports in 2015. This of international economic activities. provided invaluable assistance in studying experiences
of entering other markets. We were able to determine a PROJECT AIM: RESULTS: ‣‣Infrastructure development that supports strategy for working in foreign markets, identify priorities companies were supported educational events aimed at the export of innovative and high-tech within the framework of the raising competencies in the and exchange experience. As a result of this interaction, products through exportation support 138 implementation of three export 15 sphere of foreign economic co-financing programs, developed contact was established with Russian exporters, and now we support programs; activities, security, the protection technological platforms and business are trying to create joint products with mutual promotion. of intellectual property, and also associations. companies participated in international certification; Such support programs are in demand in the market. They international events; show our foreign clients that Russian IT-companies are being 42 supported at the highest level of government. PROJECT PARTNERS: support programs for the studies on perspective export ‣‣RUSSOFT NP; export of innovative products markets. ‣‣Manufacturers of LED Technologies NP; 3 in the spheres of information, 5 ‣‣Radtech Association; radiation and LED technologies ‣‣Ministry of Economic Development of the were selected and launched in Russian Federation. co-financing conditions; Dmitry Odintsov Director of TrueConf
54 VALUE OF FUNDAMENTALS www.rusventure.ru/en RVC ANNUAL REPORT 2015 55 RVC IN 2015 IN FIGURES OPENING ADDRESS BY THE RUSSIAN VENTURE PRIORITIES OF RVC'S CREATION OF THE NTI INVESTMENT ACTIVITY ACTIVITIES FOR THE EXECUTION OF INSTRUCTIONS FINANCIAL RESULTS CORPORATE SOCIAL RESPONSIBILITY APPENDIXES GENERAL DIRECTOR CAPITAL MARKET ACTIVITY FOR 2015-2016 PROJECT OFFICE DEVELOPMENT OF AN OF THE GOVERNMENT FOR 2015 GOVERNANCE AND SUSTAINABLE INNOVATION ECOSYSTEM REGARDING THE DEVELOPMENT DEVELOPMENT OF INNOVATION
MAIN DIRECTIONS OF RVC'S INTERNATIONAL ACTIVITIES BY COUNTRY PRIMARY PRIORITY COUNTRIES FOR RVC’S INTERNATIONAL COOPERATION
USA1 SOUTH KOREA ‣‣30 companies received the support of RVC USA Inc.; ‣‣A business mission of Russian technology companies with the aim ‣‣A presentation of the interests of Russian high-tech companies at of initiating foreign economic transactions for developing bilateral Austria Germany Ireland Netherlands Finland Sweden the Global Technology Symposium (GTS) in the USA; economic relations with foreign partners; ‣‣A business mission of Russian technology companies aimed at ‣‣A presentation of the interests of Russian technology companies, Brazil Israel China Singapore France South Korea developing bilateral economic relations with foreign partners. in the subgroup for innovation, at the Russian-Korean IGC for
Vietnam India Malaysia USA Swiss Japan Economic and Scientific Technical Cooperation; ISRAEL1 ‣‣Russian-Korean Weeks in Russia and in Korea within the framework ‣‣18 companies received the support of the representative; of the partnership with Russian Science Seoul (RSS) and the ‣‣A seminar on prototyping and productizing for RVC-backed portfolio Korean Technical Venture Fund of the Korean Institute of Science companies, finalists of the GenerationS accelerator, and members of MoscowMoscow and Technology (KIST) for the establishment of a Russian-Korean the RUSSOFT association; technological platform; ‣‣Representatives from RVC-backed funds and their portfolio ‣‣Cooperation agreement with the Office of the Strategic Planning of companies participated in IATI Biomed 2015 (May 12-14, 2015). Research and the Development of the Ministry of Trade, Industry and Energy of the Republic of Korea2; 1 SINGAPORE ‣‣Cooperation agreement with the Korean Technical Venture Fund; ‣‣31 companies received the support of the representative; the launch of a mechanism for selecting technology companies, ‣‣A presentation of the interests of Russian technology companies at scientific research projects, experts and scientists. HelsinkiHelsinki the Russian-Singaporean ICG; Amsterdam Amsterdam ‣‣Participation of RVC-backed portfolio companies and the finalists MALAYSIA Hannover Hannover of the GenerationS accelerator at the exhibition conference ‣‣A business mission of Russian technology companies with the aim Dusseldorf Dusseldorf HarbinHarbin TechVenture 2015 and the TechInnovation 2015 forum; of initiating foreign economic transactions, targeted at developing Tokyo ‣‣Educational work placements organized for representatives of the Paris Tokyo bilateral economic relations with foreign partners. ZurichParis Russian innovation ecosystem. GenevaZurich Geneva Seoul GERMANY Vienna Seoul CHINA Vienna Beijing ‣‣A presentation of the interests of Russian technology companies at Beijing Tel-Aviv Shanghai ‣‣Business missions of Russian technology companies with the aim the Russian-German Working Team for Strategic Cooperation in Tel-Aviv Shanghai of initiating foreign economic transactions and developing bilateral Shenzhen Economy and Finance; Shenzhen economic relations with foreign partners; ‣‣A presentation of the interests of Russian technology companies at Hanoi Hanoi ‣‣8 export companies in the IT sector, with support from RVC, the CeBIT exhibition and the CeBIT d!conomy conference; Menlo Park, participated in the events during Russian Day at the Mobile World MenloCalifornia Park, ‣‣Cooperation with local development institutes within company California Congress; promotion: NRW Invest (Düsseldorf), hannoverimpuls (Hannover). ‣‣A cooperation agreement between RVC and the Venture Committee of the All-China Association of the Financial Promotion of Science FRANCE and Technology, within which a mechanism for searching for ‣‣A presentation of the interests of Russian technology companies at Brasilia Kuala- relevant partners was launched. the Russian-French ICG on Bilateral Cooperation; Brasilia Lumpur Sao Paulo Kuala- ‣‣Interaction with the Business France agency under the Embassy of Lumpur Sao Paulo France in Russia; ‣‣Participation of companies from the GenerationS pool in the Futur en Seine event. Singapore Singapore SECONDARY PRIORITY COUNTRIES FOR RVC’S INTERNATIONAL COOPERATION
AUSTRIA, VIETNAM, FINLAND, SWITZERLAND, JAPAN INDIA, IRELAND, SWITZERLAND Business missions of Russian technology companies / interaction with A presentation of the interests of Russian technology companies at trade representatives of the Russian Federation with the aim of finding intergovernmental commissions (ICGs) and organizations. partners / participating in events. APEC BRAZIL, THE NETHERLANDS, SWITZERLAND A presentation of the interests of RVC and the Russian innovation Holding educational working placements for representative of the ecosystem in the work of the profile group of the APEC forum (APEC’s Russian innovation ecosystem. Policy Partnership on Science, Technology and Innovation (PPSTI)).
1 Office operating in the country. 2 The agreement offers a tool for transferring technological forecasts and trends as well as the plans for technological development at the state level, and provides for interstate cooperation in terms of developing small and medium technology companies and systemic support of their entry into the markets of Russia and Korea.
56 VALUE OF FUNDAMENTALS www.rusventure.ru/en RVC ANNUAL REPORT 2015 57 RVC IN 2015 IN FIGURES OPENING ADDRESS BY THE RUSSIAN VENTURE PRIORITIES OF RVC'S CREATION OF THE NTI INVESTMENT ACTIVITY ACTIVITIES FOR THE EXECUTION OF INSTRUCTIONS FINANCIAL RESULTS CORPORATE SOCIAL RESPONSIBILITY APPENDIXES GENERAL DIRECTOR CAPITAL MARKET ACTIVITY FOR 2015-2016 PROJECT OFFICE DEVELOPMENT OF AN OF THE GOVERNMENT FOR 2015 GOVERNANCE AND SUSTAINABLE INNOVATION ECOSYSTEM REGARDING THE DEVELOPMENT DEVELOPMENT OF INNOVATION
PROGRAM FOR PROMOTING Communication in the sphere of science and technology is a huge area, which includes popularization of science, links with the public INNOVATION ACTIVITIES in high-tech business, and science journalism. In today’s conditions it is important to create new methods for communication and prepare THE PROGRAM IS DESIGNED TO POPULARIZE AND PROMOTE SCIENTIFIC TECHNICAL AND specialists for working with information in modern, high-tech society. INNOVATION ACTIVITIES BY DEVELOPING INNOVATION JOURNALISM, ACCELERATING PROFILE Last year together with RVC’s Communications Laboratory, NETWORK EVENTS AND MEDIA, PROMOTING SUCCESS STORIES OF TECHNOLOGY COMPANIES, we launched the Communications in the Sphere of Science AND INCREASING THE PRESTIGE OF ENGINEERING EDUCATION. and Technology educational program, within which we prepare
specialists who are capable of explaining advanced research and PROGRAM AIMS: engineering developments in an interesting and clear manner. We ‣‣Engaging scientific and educational stakeholders, and also developers, in the scope of the innovation business; ‣‣Popularizing new professions and career trajectories in the area of science and technology; actively engage in cooperation professionals working in key popular ‣‣Popularizing engineering and IT education among young people, as well as scientific and technical activities; science media, and introduce modern educational formats. Potential ‣‣The development of information infrastructure for new technology markets. “clients” of specialists in science communications are scientific KEY RESULTS: institutes, technological enterprises, large businesses and popular ‣‣More than 25 mass media outlets covering the theme of innovative enterprise and venture business received support; science mass media outlets. ‣‣20,000,000 people reached by media reports about the program’s projects; ‣‣27,700 participants from events in programs promoting innovation activities; ‣‣A program to popularize scientific, technical and innovation activities as prepared for the Ministry of Economic Development of the Russian Federation; ‣‣Four analytical studies carried out on the key themes of the program’s projects.
Andrey Nikolaenko Rector of Moscow Polytechnic University (previously MAMI)
RVC’s initiatives for supporting the media infrastructure of the innovation market is helping to develop profile mass media, and new informational resources are appearing that write about science, technology and education. We are not talking about grants or subsidies, but a program for accelerating teams and new media, educational projects, and development of qualified young journalists, including from the regions. Together with the creation of “their” mass media, RVC has made a stake in the search for new teams and formats, and support for profile resources, which forms a unified program of development and ensures significant changes for the better.
Vitaly Leybin Editor-in-Chief of Russian Reporter magazine
58 VALUE OF FUNDAMENTALS www.rusventure.ru/en RVC ANNUAL REPORT 2015 59 RVC IN 2015 IN FIGURES OPENING ADDRESS BY THE RUSSIAN VENTURE PRIORITIES OF RVC'S CREATION OF THE NTI INVESTMENT ACTIVITY ACTIVITIES FOR THE EXECUTION OF INSTRUCTIONS FINANCIAL RESULTS CORPORATE SOCIAL RESPONSIBILITY APPENDIXES GENERAL DIRECTOR CAPITAL MARKET ACTIVITY FOR 2015-2016 PROJECT OFFICE DEVELOPMENT OF AN OF THE GOVERNMENT FOR 2015 GOVERNANCE AND SUSTAINABLE INNOVATION ECOSYSTEM REGARDING THE DEVELOPMENT DEVELOPMENT OF INNOVATION
INITIATIVE FOR THE ACCELERATION OF INFORMATION INFRASTRUCTURE FACILITIES THE PROJECT FOR AN ACCELERATOR OF NETWORK EVENTS AND A PROGRAM FOR ON PERSPECTIVE TECHNOLOGY MARKETS INCREASING THE QUALITY OF NETWORK EVENTS IN THE INNOVATIVE TECHNOLOGY MARKET
THE PROJECT ON THE DEVELOPMENT OF CENTERS OF PRODUCTION AND DISTRIBUTION PROJECT AIM: RESULTS: FOR POPULAR SCIENTIFIC, TECHNICAL AND EDUCATION CONTENT ‣‣ The development of network events in the innovative technology market by means of the acceleration of people were reached as organization teams; audience by the events; PROJECT AIMS: RESULTS: ‣‣ Raising the quality of profile events and the development >25,000 ‣‣The development of audience and business potential for of the competencies of organizers at innovative technology mass media outlets, including niche media writing about science and technology; themed events. four regional ones, passed projects received support, ‣‣Stimulating interest in new spheres of science, and 16 through the accelerator including educational educational and career opportunities in the area of high program; 14 and popularizing events, technology. PARTNERS: youth forums and science ‣‣All-Russian Science Festival; participants gathered at schools. ‣‣International Science Slam1 project; the themed MediaMakers PARTNER: ‣‣Game Changers Bioinformatics Institute; 600 conference; ‣‣Slon.ru. ‣‣Russian Reporter summer school; ‣‣Autumn intensive course on the Biotechnology of PARTICIPANTS: the Future, and a school on Modern Biology and the mass media outlets participated ‣‣PostScience internet magazine; Biotechnology of the Future. in the program, in which three ‣‣Ceiling: Science, Technology and Future portal; >20 network meetings and five ‣‣TASS information agency; educational seminars were held. ‣‣VC.ru internet edition; ‣‣Kot Shredingera/Schrodinger’s Cat magazine; INITIATIVE ON THE DIRECT POPULARIZATION OF INNOVATION ACTIVITY ‣‣Habrahabr website; ‣‣Geektime website; ‣‣Ucheba.ru portal; THE PROJECT ON THE TECHNOPARK TV PROGRAM COVERING THE SUCCESS STORIES OF ‣‣N+1 internet edition; INNOVATIVE RUSSIAN BUSINESSES ‣‣Business FM radio station; ‣‣Sib.fm Internet edition, and others. PROJECT AIMS: RESULTS: ‣‣Creating an attractive image of technology enterprise among the general public; people as target audience ‣‣Attracting attention to perspective scientific discoveries were reached; and engineering activities. 2,132,000
programs broadcast on PARTNERS: the TV channels Russia ‣‣Russia 24 TV channel; 16 24 and Public Television ‣‣Temporary Commission of the Federal Council for the Russia. Development of Legislation in the Russian Federation on Engineering and Engineering Activities; ‣‣Committee for Science and Knowledge-Based Technology of the State Duma of the Russian Federation.
1 International project for science popularizatoin is being developed in over 14 countries of the world: http://science-slam.moscow/.
60 VALUE OF FUNDAMENTALS www.rusventure.ru/en RVC ANNUAL REPORT 2015 61 RVC IN 2015 IN FIGURES OPENING ADDRESS BY THE RUSSIAN VENTURE PRIORITIES OF RVC'S CREATION OF THE NTI INVESTMENT ACTIVITY ACTIVITIES FOR THE EXECUTION OF INSTRUCTIONS FINANCIAL RESULTS CORPORATE SOCIAL RESPONSIBILITY APPENDIXES GENERAL DIRECTOR CAPITAL MARKET ACTIVITY FOR 2015-2016 PROJECT OFFICE DEVELOPMENT OF AN OF THE GOVERNMENT FOR 2015 GOVERNANCE AND SUSTAINABLE INNOVATION ECOSYSTEM REGARDING THE DEVELOPMENT DEVELOPMENT OF INNOVATION
INITIATIVE FOR THE STIMULATION OF COMMUNICATIONS AND INFORMATIONAL TRANSPARENCY OF NEW TECHNOLOGY MARKETS
THE PROJECT FOR NAVIGATING THE MARKET AND THE SYSTEMATIZATION OF INFORMATION COMMUNICATIONS LABORATORY PROJECT1 ABOUT MARKET PARTICIPANTS
PROJECT AIM: RESULTS: PROJECT AIMS: RESULTS: ‣‣Forming and developing a social and ‣‣ Increasing informational transparency; reputational capital for the scientific ‣‣ Supporting the informational infrastructure of the venture people were reached in the participants from Ratings: community. capital market; professional community of university educational ‣‣ Drawing the attention of the business community to ‣‣Venture funds; >2,000 scientific communicators 65 programs3; venture capital. ‣‣Business angels; through social media; PARTNERS: ‣‣Corporate venture ‣‣SPN Communication agency; funds and corporate participants scientific research ‣‣Moscow State Machine-Building PARTNERS: strategists. in 10 conferences on institutes and scientific University (MAMI); ‣‣Infrastructure: EY, Venture Club, National Association of 500 the theme of science 68 educational organizations ‣‣St. Petersburg National Research Business-Angels (NABA), RVCA, Deloitte; communication; from seven regions were University for IT, Mechanics and Optics ‣‣Information: Lenta.ru Internet edition, RB.ru, Slon.ru, brought together in the (ITMO University). Rossiyskaya Gazeta’s international publication project participants in the project. RBTH. 100 Laboratory Cases event2;
THE TECH IN MEDIA INNOVATION JOURNALISM COMPETITION THE PROJECT FOR DEVELOPING A YOUNG TECHNOLOGY COMMUNITY
PROJECT AIMS: RESULTS: PROJECT AIMS: RESULT: ‣‣ The development of a community of journalists who write ‣‣Popularization of the maker movement in Russia; about science and innovation themes; ‣‣Development and support for the Russian community of authors participated in the press tours were held Research on the digital Do-It- ‣‣ Raising the professional competencies of journalists who technology enthusiasts. competition; for the competition Yourself movement in Russia1. cover innovation venture themes; 324 4 winners at closed ‣‣ The emergence and popularization of professional facilities for scientific standards for innovation journalism. PARTNER: technical infrastructure ‣‣Intel Corporation. participants from five in the Russian regions in the Russian Federation. 250 Federation passed through PARTNERS: the educational program; ‣‣All-Russian Science Festival ‣‣Kot Shredingera/Schrodinger’s Cat magazine (a partner of the educational program).
1 The project has been recognized as the best in five categories of Gold Quill Award of the International Association of Business Communicators and also received a special prize of 1 Presentation of the research: http://www.slideshare.net/IntelRussia/intel-55931935. "Silver Archer" National Award. 2 Within Laboratory Cases event a group of students, mentored by the leading communication agencies of the country, offered the solutions for the real cases related to communication problems of scientific and educational institutions. 3 Baccalaureate "Communications in science and technology" in MAMI and monthly training course on scientific communication, "SciComm Mission" in ITMO.
62 VALUE OF FUNDAMENTALS www.rusventure.ru/en RVC ANNUAL REPORT 2015 63 RVC IN 2015 IN FIGURES OPENING ADDRESS BY THE RUSSIAN VENTURE PRIORITIES OF RVC'S CREATION OF THE NTI INVESTMENT ACTIVITY ACTIVITIES FOR THE EXECUTION OF INSTRUCTIONS FINANCIAL RESULTS CORPORATE SOCIAL RESPONSIBILITY APPENDIXES GENERAL DIRECTOR CAPITAL MARKET ACTIVITY FOR 2015-2016 PROJECT OFFICE DEVELOPMENT OF AN OF THE GOVERNMENT FOR 2015 GOVERNANCE AND SUSTAINABLE INNOVATION ECOSYSTEM REGARDING THE DEVELOPMENT DEVELOPMENT OF INNOVATION
One of RVC’s key initiatives is the Program for Development of the PROGRAM FOR THE DEVELOPMENT Innovation Ecosystem. The result of the project pool of this program was the formation of a favorable environment for creating new technological products, businesses, infrastructure and markets OF THE INNOVATION ECOSYSTEM in the Russian Federation, including the inclusion of Russian universities in these critically important processes. THE PROGRAM IS AIMED AT DEVELOPING AN INNOVATION INFRASTRUCTURE, AND ALSO The experience of our cooperation with RVC clearly demonstrates CREATING AND DEVELOPING THE INNOVATION ECOSYSTEMS OF UNIVERSITIES AND SCIENTIFIC the effectiveness of an approach that is aimed at increasing the ORGANIZATIONS, INCLUDING RAISING THE QUALIFICATIONS OF SPECIALISTS WORKING IN THE accessibility of services for project teams, productive cooperation SPHERE OF INNOVATION. between subjects and objects of the national innovation ecosystem, and their synchronization with government instruments for support of innovation. PROGRAM AIMS: ‣‣Strengthening cooperation links between participants of the innovation ecosystem and removing obstacles to its development; ‣‣Raising the competencies of participants in the innovation ecosystem.
KEY RESULTS: ‣‣More than 170 innovation infrastructure facilities were covered by the programs and by RVC’s support and development instruments1. Vladimir Vasilev Rector of St. Petersburg National Research University of Information Technology, Mechanics and Optics (ITMO University) INITIATIVE FOR THE DEVELOPMENT OF AN INNOVATION ECOSYSTEM IN UNIVERSITIES AND SCIENTIFIC ORGANIZATIONS AS A BASIS FOR NTI
THE SCHOOL OF TECHNOBROKERS PROJECT In developing the innovation ecosystem, RVC is solving the complex
challenge of creating partnerships between its participants. PROJECT AIM: RESULTS: Essentially, it is about consistent work on the topic of trust between ‣‣ The development of technology brokering skills among young scientists and employees of the Russian Academy universities, enterprises, corporations and the government. The young scientists of Sciences. final aim of this cooperation is new generations of foundational from 23 universities and 40 scientific organizations technological platforms for global markets, and competitiveness of participated in the project. small and medium-sized technological companies that are the most PARTNERS: ‣‣Scientist community and enterprises of the Biotechnology flexible and adaptable “agents of change”. of the Future; Paying particular attention to knowledge-based, high-risk projects, ‣‣Skolkovo Open University; ‣‣St. Petersburg National Research University of IT, RVC has shown effective expert support for a range of initiatives Mechanics and Optics. of the Russian Technology Agency and the Ministry of Industry and Trade of Russia.
Nikolay Kuteev General Director of Russian Technology Agency 1 22 innovative ecosystem facitities were involved in three and more projects and initiatives.
64 VALUE OF FUNDAMENTALS www.rusventure.ru/en RVC ANNUAL REPORT 2015 65 RVC IN 2015 IN FIGURES OPENING ADDRESS BY THE RUSSIAN VENTURE PRIORITIES OF RVC'S CREATION OF THE NTI INVESTMENT ACTIVITY ACTIVITIES FOR THE EXECUTION OF INSTRUCTIONS FINANCIAL RESULTS CORPORATE SOCIAL RESPONSIBILITY APPENDIXES GENERAL DIRECTOR CAPITAL MARKET ACTIVITY FOR 2015-2016 PROJECT OFFICE DEVELOPMENT OF AN OF THE GOVERNMENT FOR 2015 GOVERNANCE AND SUSTAINABLE INNOVATION ECOSYSTEM REGARDING THE DEVELOPMENT DEVELOPMENT OF INNOVATION
A PROJECT FOR THE DEVELOPMENT OF AN INNOVATION ECOSYSTEM IN UNIVERSITIES AND THE PROJECT FOR THE ANALYTICAL REPORT ON THE COMMERCIALIZATION SCIENTIFIC ORGANIZATIONS OF EARLY STAGE TECHNOLOGIES
PROJECT AIMS: RESULTS: PROJECT AIM: RESULTS: ‣‣The development of innovation ‣‣ Preparing a global analytical report about university infrastructure facilities in leading projects that have commenced their activities, thanks to people from 83 organizations universities and scientific A global analytical universities and regional scientific centers investments from corporations, with the consideration of participated in the first organizations were offered report entitled the in Russia, and the strengthening of their Russian specificities. 570 practical forum for technology 46 methodological support Commercialization of Early links with industry; transfer entitled Ecosystem in the area of creating Stage Technologies1. ‣‣Supporting the transfer of technology of Innovation: Universities and and developing centers of and the results of scientific and technical Scientific Centers; technology transfer; PARTNERS: activity. ‣‣ Global Corporate Venturing; ‣‣ Kauffman Fellows; ‣‣ Tilburg University. employees of universities A proposal was devised for PARTNERS: and scientific organizations the Ministry of Education ‣‣Federal Agency for Scientific Organizations 240 passed through the educational and Science of the Russian (FASO Russia); program entitled the Federation regarding the ‣‣Ministry of Education and Science of the Development of the Innovation introduction of innovation THE PROJECT FOR THE DEVELOPMENT OF INNOVATION ECOSYSTEMS Russian Federation; Ecosystem in Universities and KPIs for universities in the ‣‣Leading universities of the Russian Scientific Centers; 5-100 Project, and also for the AT KEY UNIVERSITY PARTNERS 1 Federation ; development of a network for ‣‣St. Petersburg Technopark (Ingriya universities and scientific centers of technology transfer business incubator). PROJECT AIM: RESULTS: organizations in Russia were in Russian universities. ‣‣ Forming a base of key university partners. >100 encompassed by the project; A cooperation agreement A cooperation agreement between RVC, MSU and between RVC and NRU PARTNERS: Innopraktika; TSU. ‣‣National Research University of Tomsk State University (NRU TSU); THE PROJECT ON INNOVATION ECOSYSTEMS AT SCIENTIFIC ORGANIZATIONS ‣‣Lomonosov Moscow State University (MSU); OF THE FASO IN RUSSIA ‣‣Innopraktika Company.
PROJECT AIM: RESULTS: ‣‣ The development of innovation ecosystems at scientific A cooperation agreement scientific organizations organizations in Russia. between RVC and FASO selected from the results Russia; 7 of a competition for centers of scientific technical PARTNER: forecasting. ‣‣Federal Agency for Scientific Organizations (FASO Russia).
1 St. Petersburg National Research University of Information Technologies, Mechanics and Optics, Lomonosov Moscow State University, Tomsk National State Research University, 1 The report is given in Annotations of analytical materials section. Lobachevsky Nizhny Novgorod National State Research University, MISiS National Research Technological University and others.
66 VALUE OF FUNDAMENTALS www.rusventure.ru/en RVC ANNUAL REPORT 2015 67 RVC IN 2015 IN FIGURES OPENING ADDRESS BY THE RUSSIAN VENTURE PRIORITIES OF RVC'S CREATION OF THE NTI INVESTMENT ACTIVITY ACTIVITIES FOR THE EXECUTION OF INSTRUCTIONS FINANCIAL RESULTS CORPORATE SOCIAL RESPONSIBILITY APPENDIXES GENERAL DIRECTOR CAPITAL MARKET ACTIVITY FOR 2015-2016 PROJECT OFFICE DEVELOPMENT OF AN OF THE GOVERNMENT FOR 2015 GOVERNANCE AND SUSTAINABLE INNOVATION ECOSYSTEM REGARDING THE DEVELOPMENT DEVELOPMENT OF INNOVATION
THE PROJECT FOR INNOVATION WEEK AT THE FACULTY OF ECONOMICS THE PROJECT FOR RVC PARTICIPATION IN EDUCATION SEMINARS AT UNIVERSITIES AT LOMONOSOV MOSCOW STATE UNIVERSITY AND THE WINNERS OF THE PROGRAM FOR RAISING INTERNATIONAL COMPETITIVENESS (5-100 PROJECT)
PROJECT AIM: RESULTS: ‣‣ The development of an innovation ecosystem at MSU. PROJECT AIM: RESULTS: students, graduates and ‣‣ Increasing the level of information for university young scientists from representatives about models of developing innovation 600 Russian universities and educational seminars seminars of the 5-100 ecosystems and integrating them into the implementation scientific organizations on issues of the Project, including a PARTNERS: of the NTI. participated in the 10 development of 4 strategic session dedicated ‣‣The fund for interaction on the development of the Faculty Innovation Week events. university venture to universities’ participation of Economics at MSU; funds, youth enterprise, in the NTI. ‣‣The Faculty of Economics of MSU. PARTNERS: the standardization of ‣‣ 5-100 Project office; innovation infrastructure ‣‣Centre for Sociological Research Federal State activities, and links Autonomous Scientific Institution; between universities and ‣‣National Research University of Tomsk State University; industry; ‣‣St. Petersburg National Research University of IT, A PROJECT FOR ELABORATING A DEVELOPMENT ROAD MAP FOR THE STUDENT COMMUNITY Mechanics and Optics; AT THE CROSSROADS OF ENTERPRISE, SCIENCE AND ENGINEERING IN 2016-2017 ‣‣National Research University Higher School of Economics; ‣‣National Research Technical University (NRTU); PROJECT AIM: RESULTS: ‣‣Lobachevsky National Research Nizhegorod University; ‣‣ The development of the student community at the ‣‣First President of Russia B.N. Yeltsin Ural Federal crossroads of enterprise, science and engineering. University. A road map for the development of the student community at the PARTNERS: crossroads of enterprise, ‣‣ The Council for Youth Issues of the Ministry of Education science and engineering for and Science of the Russian Federation; 2016-2017. ‣‣ National Research Technology University (NRTU).
THE PROJECT FOR THE INNOFEST SECOND ALL-RUSSIAN FESTIVAL FOR YOUTH INNOVATION
PROJECT AIM: RESULTS: ‣‣ The development of youth innovation projects.
students, graduates, and young scientists >1,000 participated with their PARTNER: projects in more than ‣‣Lobachevsky National Research Nizhegorod State 15 events at the festival. University.
68 VALUE OF FUNDAMENTALS www.rusventure.ru/en RVC ANNUAL REPORT 2015 69 RVC IN 2015 IN FIGURES OPENING ADDRESS BY THE RUSSIAN VENTURE PRIORITIES OF RVC'S CREATION OF THE NTI INVESTMENT ACTIVITY ACTIVITIES FOR THE EXECUTION OF INSTRUCTIONS FINANCIAL RESULTS CORPORATE SOCIAL RESPONSIBILITY APPENDIXES GENERAL DIRECTOR CAPITAL MARKET ACTIVITY FOR 2015-2016 PROJECT OFFICE DEVELOPMENT OF AN OF THE GOVERNMENT FOR 2015 GOVERNANCE AND SUSTAINABLE INNOVATION ECOSYSTEM REGARDING THE DEVELOPMENT DEVELOPMENT OF INNOVATION
INITIATIVE TO DEVELOP COMPETENCIES OF PARTICIPANTS IN THE INNOVATION ECOSYSTEM THE PROJECT FOR INTERNSHIPS IN LEADING INTERNATIONAL SCIENCE CENTERS, CENTERS FOR TECHNOLOGY TRANSFER, UNIVERSITIES AND INNOVATION CLUSTERS THE PROJECT FOR THE ECOSYSTEM OF INNOVATIONS II FORUM FOR DEVELOPMENT FOR THE HEADS OF MANAGEMENT COMPANIES, INNOVATION CLUSTERS, LEADING OF REGIONAL INNOVATION ECOSYSTEMS OF RUSSIA UNIVERSITIES AND SCIENTIFIC ORGANIZATIONS IN RUSSIA
PROJECT AIMS: RESULTS: PROJECT AIMS: RESULTS: ‣‣ Assisting the development of modern innovation ‣‣ The development of the human capital of the Russian infrastructure in regions of the Russian Federation, and innovation ecosystem by raising the competencies of its people participated innovation infrastructure participants of the A cooperation agreement also building effective links between business, the social participants in the sphere of innovation activity; in the forum; facilities in 32 regions of innovation ecosystem of between RVC and the sphere and education; ‣‣ The identification and distribution of global best practices 270 67 the Russian Federation 98 the Russian Federation Nyanyang Business School ‣‣ The development of the competencies of university in the sphere of innovation and entrepreneurial education; were presented within the carried out internships; for acquiring technological leadership on the part of interactions with industry and ‣‣ Research into the innovation ecosystems of other forum. and management other participants in the innovation ecosystem; countries, the establishment of contacts with main competencies within ‣‣ Improving the competencies of regional ecosystem participants specializing in technology transfer and the frames of the Open players (representatives from incubators, technoparks, the development of innovation infrastructure for future Technology Academy; accelerators, venture funds, etc.). cooperation and the exchange of experience.
An agreement between A cooperation agreement the Ural Federal University, between the administration PARTNERS: a partner of the internship, of Stavropol region, ‣‣ The Ministry of Economic Development of Krasnodar with Asian partners, that providing an internship Region; PARTNERS: will provide assistance program with the ‣‣ Skolkovo Foundation; ‣‣Bontemantel (The Nethterlands); to Russian companies Jurong company, for ‣‣ Volnoe Delo Foundation; ‣‣Kaizer Communication (Germany, Switzerland); entering the Asian market; the construction of a ‣‣ The Ministry of Economic Development of the Russian ‣‣Aptivalux Bioengenharia Ltd (Brazil); technopark. Federation; ‣‣Interstice Consulting (RVC representative in Singapore). ‣‣ The Ministry of Industry and Trade of the Russian Federation.
THE PROJECT TO PREPARE AND CONDUCT AN EDUCATIONAL PROGRAM FOR THE THE PROJECT FOR THE RVC BASIC DEPARTMENTS FOR MANAGEMENT MANAGEMENT OF AN INNOVATION ECOSYSTEM ON THE BASE OF GLOBAL BEST PRACTICE OF TECHNOLOGICAL PROJECTS AT MPTI
PROJECT AIM: RESULTS: PROJECT AIM: RESULTS: ‣‣ Teaching the representatives of innovation ecosystem ‣‣ Preparing managers and technological brokers who are facilities about best global practices in technological capable of managing innovation projects and using their people from 16 regions Master’s students people enterprise and management of innovation ecosystems. results in the market. of Russia completed the of the classes of 2014 and successfully completed the 83 education program. 30 2015 underwent training 11 education. during 2015; PARTNER: PARTNERS: ‣‣Moscow Physics and Technology Institute (State graduates of the Master’s ‣‣ St. Petersburg National Research University of IT, University) MPTI. program had, by the time Mechanics and Optics; 10 of graduation from MPTI, ‣‣ Eugene Fitzgerald and Andreas Wankerl, Professors at become employed in the Massachusetts Institute of Technology (MIT). technology companies and venture funds;
70 VALUE OF FUNDAMENTALS www.rusventure.ru/en RVC ANNUAL REPORT 2015 71 RVC IN 2015 IN FIGURES OPENING ADDRESS BY THE RUSSIAN VENTURE PRIORITIES OF RVC'S CREATION OF THE NTI INVESTMENT ACTIVITY ACTIVITIES FOR THE EXECUTION OF INSTRUCTIONS FINANCIAL RESULTS CORPORATE SOCIAL RESPONSIBILITY APPENDIXES GENERAL DIRECTOR CAPITAL MARKET ACTIVITY FOR 2015-2016 PROJECT OFFICE DEVELOPMENT OF AN OF THE GOVERNMENT FOR 2015 GOVERNANCE AND SUSTAINABLE INNOVATION ECOSYSTEM REGARDING THE DEVELOPMENT DEVELOPMENT OF INNOVATION
INTERNATIONAL PROJECTS FOR GenerationS is, without doubt, a project that is very DEVELOPING AN INNOVATION ECOSYSTEM friendly for startups. It is very important that the accelerator gives wide opportunities for participating GENERATION S FEDERAL ACCELERATOR FOR TECHNOLOGY STARTUPS teams to test their ideas with a big audience. For Generation S is the largest startup accelerator in Russia and Eastern Europe and has been operated RVC since 2013. During the accelerator, the corporate partners of GenerationS, it is an the best projects, selected based on the results of a multi-step expertise, receive intensive development and broad opportunities to attract excellent chance to watch live projects and assess investments. Since 2015, the resources of Generation S have been used to create corporate accelerators: corporations participate directly in the selection, expertise and acceleration of projects on the basis of their requirements in innovation developments. their prospects. As I see it, it is more effective than corresponding by reviewing papers. In addition,
personal interaction with technological enterprises, ACCELERATOR AIMS: RESULTS: ‣‣ The development of an innovation environment by mentors and potential customers enables shorter applications experts and mentors increasing the number of high-tech projects of interest for for participation participated in the distances and speaking in a common language. venture investors, corporations and government clients; 2,566 received from 139 400 accelerator; ‣‣ Stimulating the introduction, use and development of cities and 14 countries; “open innovation” instruments in Russian corporations; ‣‣ Raising the quality of technology projects and their attractiveness for investment, as well as assistance for teams underwent projects were selected entry onto the capital market; online training; for participation in Vasiliy Zubakin ‣‣ The development of professional links between 2,159 141 corporate accelerators Member of the Board of Trustees of GenerationS, technology startups with Russian and foreign experts, in seven directions1; Deputy Head of the Main Administration for Energy of LUKOIL PJSC corporate clients, entrepreneurs and investors.
organizations RUB million participating in the in total prize fund. Participation in GenerationS allowed our company to 150 partnership network; 160 acquire knowledge for quick development and large- PARTNERS: ‣‣ More than 150 government organizations and commercial RUB million scale business. During the year we visited many companies, including the Foundation for Assistance grand prize for the thematic exhibitions and events, studied the global to Small Innovative Enterprises in the Scientific and 10 winners; market, presented Promobot version 2.0, formed a Technical Sphere, the Ministry of Economic Development of the Russian Federation, the Ministry of Agriculture of COMPARED TO 2014: wide dealer network in Russian, and also gained our the Russian Federation, the Ministry of Telecom and Mass first contracts and experience of working with partners Communications of the Russian Federation, the Agency more applications more projects from the regions for Strategic Initiatives, VTB 24, Alpha-Bank, Sberbank, in China, Ireland and Kazakhstan. Furthermore, all FORA-BANK, KamaFlow, SAP, IBM, Samsung, Microsoft, participants and experts of GenerationS continue Huawei, Team Finland, PwC, EFKO group, INVITRO, 1.4 TIMES 1.5 TIMES Yandex Taxi, and many more; interacting with each other after completion of the ‣‣ 20 corporate partners of Generation S 2015, including program, exchanging experience, alumni of GenerationS RusHydro, MOESK, T Plus group, MTS, Sberbank 2014 2015 2014 2015 Tecnhologies CJSC, Saturn NPO, Energy Without Borders more projects in knowledge-based areas thus forming another undeniably useful environment for Fund, S.P. Koroleva Rocket and Space Corporation all technological enterprises. Energia, the Morton group, the Russian Technical Society, Tatneftechiminvest Holding OJSC, Johnson & Johnson, 1.7 TIMES Pharmocontract group, Sibbiopharm, and others.
Aleksey Yuzhakov 2014 2015 Co-Founder of the Promobot startup 1 Modern power generation, telecommunications, automated and robotic systems, technology for the aerospace industry, solutions for "smart city" technologies and materials in the oil and gas industry, biotechnology and medicine.
72 VALUE OF FUNDAMENTALS www.rusventure.ru/en RVC ANNUAL REPORT 2015 73 RVC IN 2015 IN FIGURES OPENING ADDRESS BY THE RUSSIAN VENTURE PRIORITIES OF RVC'S CREATION OF THE NTI INVESTMENT ACTIVITY ACTIVITIES FOR THE EXECUTION OF INSTRUCTIONS FINANCIAL RESULTS CORPORATE SOCIAL RESPONSIBILITY APPENDIXES GENERAL DIRECTOR CAPITAL MARKET ACTIVITY FOR 2015-2016 PROJECT OFFICE DEVELOPMENT OF AN OF THE GOVERNMENT FOR 2015 GOVERNANCE AND SUSTAINABLE INNOVATION ECOSYSTEM REGARDING THE DEVELOPMENT DEVELOPMENT OF INNOVATION
OPEN INNOVATIONS FORUM
The forum is a global discussion platform in which representatives of the scientific community, innovators and entrepreneurs exchange experience, demonstrate their achievements and forecast development trends in the market for new technologies.
For us, Open Innovations is a great opportunity for finding In 2015, discussions at Open Innovations were based on the theme of Meeting of Trends in the Technological Revolution, and tackled five key areas of life that have been significantly altered by the impact of technology: manufacturing, housing, education, health, and the entertainment industry. potential partners and clients in Russia and abroad. It is a very helpful instrument for networking. During one day at
an exhibition I managed to get around all the most useful FORUM AIMS: RESULTS: ‣‣ Creating a discussion platform in which participants of the technopark stands for startups and gained a great deal of business events venture funds were innovation ecosystem discuss global technological trends within the framework of winners in the national helpful information. and forecast their development; 115 the forum and exhibition; 6 competition Venture ‣‣ The popularization of advanced research and Investor 2015; The opportunity to present in front of forum participants development; ‣‣ Involving top figures from government, international is also very important for startups. As a result of our corporations, and leaders of the innovation community, in RVC presented the The finals of two large a dialogue about strategic partnership. presentation of a LighTech product, several foreign and National Report on RVC projects were held Russian investors came to us with offers of cooperation, Innovation: Reconfiguring within the framework of the Management System1 the forum: the TechUp and our activities also interested several state at the forum; rating and Tech in Media ORGANIZERS OF THE 2015 FORUM: competition; corporations, including the Ministry of Defense of Russia. ‣‣ RVC; ‣‣ Skolkovo Foundation; experts from all over confirmed NTI road maps ‣‣ RUSNANO; the world participated for market development ‣‣ The government of Moscow; 200 in the forum; 4 were presented within the ‣‣ Vneshekonombank; framework of the NTI Talks ‣‣ The Ministry of Economic Development of the Russian event: AeroNet, AutoNet, Naira Davidson Federation; NeuroNet and MariNet. Founder of the LighTech startup, Finalist of GenerationS 2015, ‣‣ The Ministry of Education and Science of the Russian Best Startup of Open Innovations Federation; visitors ‣‣ The Foundation for Assistance to Small Innovative to the exhibition and Enterprises in the Scientific and Technical Sphere. 35,000 forum over five days;
1 Report made by a group of authors, headed by E.B. Kuznetsov, under the instruction of the Government of the Russian Federation and the Council for economic modernization and innovative development of Russia under the President of the Russian Federation. The document is given in section Annotations of analytical materials.
74 VALUE OF FUNDAMENTALS www.rusventure.ru/en RVC ANNUAL REPORT 2015 75 RVC IN 2015 IN FIGURES OPENING ADDRESS BY THE RUSSIAN VENTURE PRIORITIES OF RVC'S CREATION OF THE NTI INVESTMENT ACTIVITY ACTIVITIES FOR THE EXECUTION OF INSTRUCTIONS FINANCIAL RESULTS CORPORATE SOCIAL RESPONSIBILITY APPENDIXES GENERAL DIRECTOR CAPITAL MARKET ACTIVITY FOR 2015-2016 PROJECT OFFICE DEVELOPMENT OF AN OF THE GOVERNMENT FOR 2015 GOVERNANCE AND SUSTAINABLE INNOVATION ECOSYSTEM REGARDING THE DEVELOPMENT DEVELOPMENT OF INNOVATION
TECHUP NATIONAL RATING FOR HIGH-TECH FAST DEVELOPING COMPANIES Four years ago, the annual TechUspech rating of fast developing high-tech companies came into being in Russia. Today it already consists of 200 quickly developing companies. As shown in the The annual TechUp rating is organized by RVC in partnership with PwC, which has developed the rating methodology, and MSP Bank. In 2015, the 2015 results, companies participating in the rating grow by an National Research University Higher School of Economics also joined as a partner. The rating participants are Russian companies with an annual average of 30 % annually, and have annual revenue of RUB 1.6 turnover of more than RUB 100 million, and with sustained positive sales dynamics for their own high-tech products. In compiling the rating, growth rates and the share of re-investments put into scientific research and experimental design operations are also taken into consideration. billion, of which more than a quarter is spent on technological During its four years of existence, the rating has envisaged itself as an effective instrument for seeking out, monitoring and promoting fast innovation. This perspective section of the business, which I growing non-primary sector companies that have high potential as leaders in both domestic and global markets. TechUp aims to assist in the would call the golden innovation medium, is set to continue to development of instruments to support future “national champions” capable of playing a key role in the future development and modernization of grow at rather high rates, bring new innovative products onto the the Russian technology sector. market, becoming leaders in their markets in Russia and building up exports. In crisis conditions, these companies can become RATING AIMS: RESULTS: not only drivers of development of the Russian economy, but also ‣‣ Seeking out and analyzing medium-sized fast growing companies, and identifying conditions that could enable contenders for global leadership. From the government they companies participated companies with an the emergence and development of “national champions”; in the rating; average annual income expect, first of all, the creation of sustainable, long-term demand ‣‣ Increasing the effectiveness of government support in 260 50 of around RUB 1.6 billion (including in the form of government orders) and cooperation important issues for rating participants that relate to the were included in the rating; assistance in entering domestic markets. development of market demand and entry onto global markets; 1 ‣‣ The promotion of companies; Research entitled Issues for medium-sized ‣‣ The involvement of managers from medium-sized fast Champion Candidates: technology businesses growing companies in the work of forming an innovative specifics of Russian were integrated in agenda agenda. fast growing technology of the largest sector Dan Medovnikov companies, their events: Open Innovations, Director of the Institute of Innovation Management of the National Research Institute development strategies Innoprom, and the Gaidar and opportunities for Forum. Higher School of Economics PARTNERS: government support ‣‣ PwC; in implementing their ‣ National Research University Higher School of ‣ strategies; Economics; ‣‣ The Foundation for Assistance to Small Innovative companies joined the Enterprises in the Scientific and Technical Sphere; support program as ‣‣ The Ministry of Economic Development of the Russian TechUspech is a good measurement for assessing technological 10 partners of the rating2; Federation; leaders of Russian business with global ambitions. As ‣‣ MSP Bank. participants of the rating, assessment of the expert community is important for us, because it confirms the correctness of chosen development directions. Furthermore, thanks to the project the company gains new opportunities for its advancement. Useful professional connections often occur in the TechUspech forum with companies from other sectors, development institutes and research organizations.
Dmitry Morozov General Director of Biocad 1 The research is given in section Annotations of analytical materials. 2 Financial and consulting support by the partners of TechUspekh rating.
76 VALUE OF FUNDAMENTALS www.rusventure.ru/en RVC ANNUAL REPORT 2015 77 RVC IN 2015 IN FIGURES OPENING ADDRESS BY THE RUSSIAN VENTURE PRIORITIES OF RVC'S CREATION OF THE NTI INVESTMENT ACTIVITY ACTIVITIES FOR THE EXECUTION OF INSTRUCTIONS FINANCIAL RESULTS CORPORATE SOCIAL RESPONSIBILITY APPENDIXES GENERAL DIRECTOR CAPITAL MARKET ACTIVITY FOR 2015-2016 PROJECT OFFICE DEVELOPMENT OF AN OF THE GOVERNMENT FOR 2015 GOVERNANCE AND SUSTAINABLE INNOVATION ECOSYSTEM REGARDING THE DEVELOPMENT DEVELOPMENT OF INNOVATION
DEVELOPMENT OF A PROJECT FOR THE DEVELOPMENT STRATEGY OF THE RUSSIAN VENTURE CAPITAL INDUSTRY
In 2015, RVC, in partnership with the company EY and leading experts of the venture capital market, organized a project entitled the Development Strategy of the Russian Venture Capital Industry. The Strategy envisages a selection of targeted, effective and agreed upon actions of the government, development institutes and market participants in the interests of developing the venture capital industry as an important element of the innovation ecosystem. While preparing the Strategy project we were faced with the task of consolidating the opinions of leading industry STRATEGY AIMS: RESULTS: players about the perspectives of the ventures market, ‣‣ Ensuring the sustainable reproduction of venture capital Comparative analysis A system of indicators aimed at developing technological enterprise in Russia; taking into account the prevailing macroeconomic and of key indicators of the enabling the monitoring ‣‣ Assisting Russian “breakthrough” high-tech projects Russian venture capital of markets that takes into political conditions. The inclusion of a series of provisions competing for a significant share of new global markets, market with those in China, account the main strategic in the actualized document on the Strategy for Innovative and ensuring import substitution through global Finland, Israel and United goals and objectives facing competitiveness; Kingdom; the sector. Development of the Russian Federation through 2030 can ‣‣ Making the Russian jurisdiction more attractive to be considered an important achievement of the project. international and Russian venture capital, overcoming institutional and administrative barriers, and ensuring While the Strategy project requires finalization and is more stable rules of the games in the market; ‣‣ Attracting institutional investors to the Russian venture of a recommendation, I sincerely believe that it will play Abstracts describing capital market, increasing the accessibility of long-term a range of internal and its role in the future development of the ecosystem and money, the development of modern forms of collective external challenges, will be useful for market players, regulatory bodies and investments, and also “crossing” the venture capital and also the “vulnerable market with the industry of direct investments and points” of the venture development institutes. instruments for the fund market; capital market, which were ‣‣ Increasing the transparency of the sector, overcoming considered by the Ministry the “gaps” between the venture capital market and other of Economic Development elements of the innovation ecosystem, and the future of the Russian Federation development of professional competencies of participants within the framework of in the sector. the updated Strategy for Innovation Development of Vadim Ilyin the Russian Federation for Practice Partner for Tax and Legal Services, Centre for Fast-Growing Companies PARTNER: the period until 2020; and Venture Capital at EY ‣‣ EY Company.
78 VALUE OF FUNDAMENTALS www.rusventure.ru/en RVC ANNUAL REPORT 2015 79 RVC IN 2015 IN FIGURES OPENING ADDRESS BY THE RUSSIAN VENTURE PRIORITIES OF RVC'S CREATION OF THE NTI INVESTMENT ACTIVITY ACTIVITIES FOR THE EXECUTION OF INSTRUCTIONS FINANCIAL RESULTS CORPORATE SOCIAL RESPONSIBILITY APPENDIXES GENERAL DIRECTOR CAPITAL MARKET ACTIVITY FOR 2015-2016 PROJECT OFFICE DEVELOPMENT OF AN OF THE GOVERNMENT FOR 2015 GOVERNANCE AND SUSTAINABLE INNOVATION ECOSYSTEM REGARDING THE DEVELOPMENT DEVELOPMENT OF INNOVATION
THE DEVELOPMENT OF THE INTELLECTUAL PROPERTY INSTITUTE
The weight and significance of national economies are largely determined by the volume and value of intellectual property (IP) included in global production chains. In 2015, RVC paid particular attention to the development of the IP Institute, one of the key instruments for ensuring the technological, economic, social and cultural development of the country.
PROJECT AIMS: RESULTS: ‣‣ Establishing in Russia an effective system for creating, The institutional environment of intellectual property A method of developing A proposal for the preserving, protecting, managing and commercializing practices for managing formation of an effective is currently only being formed. Events realized by RVC the results of intellectual activities as a founding element the rights to the results of institutional environment in of the innovation ecosystem; within the project to develop the Intellectual Property intellectual activities and the sphere of IP; ‣‣ The analysis of the current situation for normative legal Institute should, in the near future, help in forming a strategy for managing regulation in the IP sphere, and assistance in forming the rights to the results directions for the future development of the institutional proposals aimed at its improvement; of intellectual activities in ‣‣ Support for the development of service infrastructure in environment, including access to recommendations for government and private the IP market and the stimulation of patent activities for companies, and also in adopting effective global practices for commercialization subjects of the innovation ecosystem; scientific and educations ‣‣ The development of a concept for creating a patent fund institutions; of developments, technology transfers, and increasing (like an accelerator, a patent bank), taking into account competencies on issues of intellectual property best global practices. commercialization. A concept for creating and educational functioning of a Patent events PARTNERS: Aggregator Fund; 10 held on the theme of IP. ‣‣Russian State Academy of Intellectual Property Federal State Budget Educational Institution of Higher Education; ‣‣International Institute of Industrial Property; ‣‣Trade Industrial Chamber of the Russian Federation; ‣‣The Ministry of Economic Development of the Russian Federation; ‣‣The Federal Service for Intellectual Property (Rospatent). Ivan Bliznets Rector of Russian State Academy for Intellectual Property (RGIIS)
80 VALUE OF FUNDAMENTALS www.rusventure.ru/en RVC ANNUAL REPORT 2015 81 In 2015, RVC continued to work on the execution EXECUTION OF INSTRUCTIONS OF THE of instructions approved by the Chairman of the Government of the Russian Federation, D.A. Medvedev, on July 25, 2014 as a result of the meeting of the members of the Expert RUSSIAN FEDERATION GOVERNMENT Council of the Government of the Russian Federation. REGARDING THE DEVELOPMENT OF INNOVATION RVC IN 2015 IN FIGURES OPENING ADDRESS BY THE RUSSIAN VENTURE PRIORITIES OF RVC'S CREATION OF THE NTI INVESTMENT ACTIVITY ACTIVITIES FOR THE EXECUTION OF INSTRUCTIONS FINANCIAL RESULTS CORPORATE SOCIAL RESPONSIBILITY APPENDIXES GENERAL DIRECTOR CAPITAL MARKET ACTIVITY FOR 2015-2016 PROJECT OFFICE DEVELOPMENT OF AN OF THE GOVERNMENT FOR 2015 GOVERNANCE AND SUSTAINABLE INNOVATION ECOSYSTEM REGARDING THE DEVELOPMENT DEVELOPMENT OF INNOVATION
EXECUTION OF INSTRUCTIONS OF THE RUSSIAN FEDERATION GOVERNMENT REGARDING THE DEVELOPMENT OF INNOVATION Development of innovation requires continuous administrative, political and economic accompaniment. IN 2015, THE COMPANY WAS FOCUSED ON PREPARING FOR THE NATIONAL REPORT ON INNOVATION That was precisely the reason behind the National Report IN RUSSIA, THE DEVELOPMENT OF CORPORATE VENTURE FUNDS AND PROJECTS WITH A HIGH on Innovation in 2015, prepared by the Expert Council of the INNOVATION COMPONENT. Government of Russia. Projects Subprojects Activity results in 2015 Monitoring, analysis and Preparation for the national report on ‣‣The national report on innovation in Russia was prepared, in order RVC was specifically chosen as a partner in the preparation revision of strategic priorities, innovation in Russia to present a multifaceted analysis of the condition of the innovation adopted decisions, and state ecosystem and related factors. Recommendations were offered of the report because of the successful experience of the programs with an innovation for improving the management system, increasing the efficiency of сompany in preparing complex analytical documents, and component supporting innovative activities, and transforming the relationship of society to innovation and enterprise. also the fact that RVC took upon itself the additional burden Development of corporate RVC activities within the program for ‣‣A road map for activities was developed and approved. This included of managing the national innovation ecosystem, within our venture funds and industry stimulating venture investment of developing the system of corporate venture funds and implementation of funds, investment in state companies and companies with investments in industry funds or development institutes. It also promoted joint work for systemic and strategic issues. development institutes, government participation the acquiring of companies leading innovative developments within acquiring innovative companies the implementation of the program for innovative development of state companies and companies with government participation. In the national report on innovation, we decided to depart ‣‣Instructions were given to interested federal bodies of executive authorities and to development institutes as part of the preparation from bureaucratic algorithms and tried to create a product of a concept for creating industry funds for “innovative technologies in the sphere of the fuel and energy complex” and “new production together with business; in other words with those who technologies”. are in the front line of creating and consuming innovation. The creation of the necessary ‣‣The “Management of corporate venture funds” professional development competencies in the area of program was implemented, including both educational modules in Russia One of the main tasks was to form a set of indicators for development and implementation of and professional trainings in Germany effectiveness that characterize, among other things, the venture investment programs for the management of state corporations dynamic of innovation development, and also the level of and companies with government participation advancement or lag in comparison with foreign colleagues. The creation of financial and non- ‣‣Methodological materials were prepared on the mechanisms of This kind of a instrument panel should become a good aid in financial instruments, aimed at corporate venture and direct investment, and their practical application by supporting the development and corporate investors; carrying out high-quality monitoring of the condition of the implementation of state company ‣‣The opportunity to implement pilot initiatives of Russian companies programs for venture investment, in the use of “open innovation” instruments was elaborated, with the national innovation system, and also during the adoption of within the Program for Innovative methodological assistance of infrastructure organizations within the Development (PIR) frames of the federal accelerator-competition for technological startups, management decisions. Generation S. Support and development of the ‣‣Recommendations were developed for developing concepts for industry system for industry (inter-industry) funds with the participation of large state companies. investment funds with participation of capital from state corporations and companies with government participation National projects with a high ‣‣An organizational model for the management of national projects with Mikhail Abyzov innovation component a high innovation component was finalized and elaborated; Minister for Open Government Affairs ‣‣A preliminary concept of the “Active Longevity” project was developed; ‣‣Materials were presented at the Ministry of Economic Development and of the Russian Federation the Government of the Russian Federation, and used in the development of relevant road maps of the National Technological Initiative.
84 VALUE OF FUNDAMENTALS www.rusventure.ru/en RVC ANNUAL REPORT 2015 85 FINANCIAL RESULTS FOR 2015 RVC IN 2015 IN FIGURES OPENING ADDRESS BY THE RUSSIAN VENTURE PRIORITIES OF RVC'S CREATION OF THE NTI INVESTMENT ACTIVITY ACTIVITIES FOR THE EXECUTION OF INSTRUCTIONS FINANCIAL RESULTS CORPORATE SOCIAL RESPONSIBILITY APPENDIXES GENERAL DIRECTOR CAPITAL MARKET ACTIVITY FOR 2015-2016 PROJECT OFFICE DEVELOPMENT OF AN OF THE GOVERNMENT FOR 2015 GOVERNANCE AND SUSTAINABLE INNOVATION ECOSYSTEM REGARDING THE DEVELOPMENT DEVELOPMENT OF INNOVATION
IN 2015, THE REVENUE OF RVC OJSC WAS RUB 2,543.5 MILLION, INCLUDING RUB 2,515 MILLION INVESTMENT STRUCTURE IN 2015, % FROM ALLOCATING MONETARY RESOURCES AS DEPOSITS IN BANKS RUNNING PROGRAMS THAT SUPPORT SMALL AND MEDIUM SIZED BUSINESSES. 3 1 7 37,159.7 RUB MILLION Net assets as of December 31, 2015 Expenses amounted to RUB 1,388.4 million. The expense structure In 2015, RVC currently has investments of RUB 651.2 million, including: included RUB 334.5 million in payroll expenditure and RUB 810.6 million in contractors’ fees. The volume of borrowed funds in 2015 was ‣‣Russian Venture Capital I LP capital top-up (RUB 397.7 million); 61 RUB 210 million. ‣‣Capital-call for RusBio Ventures IPA (RUB 180.9 million); ‣‣Capital-call for Da Vinci Pre-IPO Fund IPA (RUB 44.9 million); RUB 752.4 million was directed to the payment of dividends in 2015 ‣‣Capital-call for North Energy Fund I Seed IPA (RUB 18.7 million); 28 to the Russian Federation in favor of the Federal Agency for State ‣‣Acquisition of 80,000 shares in Russian Venture Asset Management Property Management (Rosimushchestvo). Ltd (RUB 9 million). 1,347.3 Net profit during the reporting year increased by RUB 920.2 million Russian Venture Capital I LP capital top-up RUB MILLION compared to 2014, reaching RUB 1,504.8 million. Growth in net assets Capital-call of RusBio Ventures IPA compared to December 31, 2014 As of December 31, 2015, total cash held in the company’s accounts Capital-call of Da Vinci Pre-IPO Fund IPA was RUB 1,584.7 million and net assets increased by RUB 1,347.3 Capital-call of North Energy Fund I Seed IPA million compared to the previous year, reaching RUB 37,159.7 million. Acquisition of 80,000 shares in Russian Venture Asset Management Ltd
2,543.5 1,388.4 2,512.0 1,504.8 920.2 1,584.7 RUB MILLION RUB MILLION RUB MILLION RUB MILLION RUB MILLION RUB MILLION Income Expenses Incomes from making deposits Amount of net profit Growth in net profit compared Total cash held on company's in banks running programs to 2014 accounts as of December 31, to support small and medium 2015 business
Notes:
1. The company makes deposits solely with banks that support small 752.4 334.5 810.6 and medium business. RUB MILLION RUB MILLION RUB MILLION 2. The company has no overdue accounts payable. RVC OJSC has no Dividends of the Russian Payroll expenditure Contractors' fees overdue debts before budgetary or non-budgetary funds. Federation in favor or Rosimushchestvo The audit report and financial statements for the year 2015 are available at: http://www.disclosure.ru/issuer/7724570128/
88 VALUE OF FUNDAMENTALS www.rusventure.ru/en RVC ANNUAL REPORT 2015 89 CORPORATE GOVERNANCE
Management and supervision bodies 92 General Meeting of Shareholders 92 The Board of Directors 93 Management 98 Advisory Board 100 Audit, Control and Risk Management 102 Distribution of new profit for 2015 and dividend policy 105 Investment decision-making process 105 RVC IN 2015 IN FIGURES OPENING ADDRESS BY THE RUSSIAN VENTURE PRIORITIES OF RVC'S CREATION OF THE NTI INVESTMENT ACTIVITY ACTIVITIES FOR THE EXECUTION OF INSTRUCTIONS FINANCIAL RESULTS CORPORATE SOCIAL RESPONSIBILITY APPENDIXES GENERAL DIRECTOR CAPITAL MARKET ACTIVITY FOR 2015-2016 PROJECT OFFICE DEVELOPMENT OF AN OF THE GOVERNMENT FOR 2015 GOVERNANCE AND SUSTAINABLE INNOVATION ECOSYSTEM REGARDING THE DEVELOPMENT DEVELOPMENT OF INNOVATION
MANAGEMENT AND SUPERVISION BODIES THE BOARD OF DIRECTORS RVC’S BOARD OF DIRECTORS OPERATES ON THE BASIS OF RUSSIAN LEGISLATION, THE CHARTER OF RVC OJSC, THE REGULATIONS OF THE BOARD OF DIRECTORS AND OTHER
EXECUTIVE INTERNAL DOCUMENTS OF THE COMPANY. SUPREME MANAGEMENT BODIES MANAGEMENT BODY STRATEGIC MANAGEMENT BODY MANAGEMENT BOARD THE CHAIRMAN OF THE BOARD OF GENERAL MEETING Competences of the Board of Directors include the general THE BOARD OF DIRECTORS THE CHAIRMAN OF SHAREHOLDERS management of company activities, except for the solution of OF THE MANAGEMENT DIRECTORS BOARD — CEO questions by the Russian legislation and Charter of RVC to the The Chairman of the Board of Directors is elected by its members competence of the general meeting of shareholders. by a simple majority of votes and can be reelected at any time. The Chairman of the Board of Directors cannot be elected as the Chairman From the beginning of 2015 up to the date of the annual general of the Management Board – CEO of RVC. meeting of shareholders (March 27, 2015), the Board of Directors was acting with a membership elected at the annual general meeting of Since April 20, 2015, by decision of the Board of Directors of RVC RVC’s shareholders (by Order of Rosimushchestvo No. 667-r on June (Protocol No. 02 from April 20, 2015; Protocol No. 08 from August 06, STRATEGIC PLANNING 30, 2014). 2015), the Chairman of the RVC Board of Directors is Oleg V. Fomichev. EXTERNAL COMMITTEE CONTROL OVER FINANCIAL FEES AND PERSONNEL AND ECONOMIC COMMITTEE The Board of Directors in the office at the end of 2015 was elected OPERATIONS AUDIT AND ETHICS at the extraordinary general meeting of shareholders on June 30, AUDITOR COMMITTEE 2015 (by Order of Rosimushchestvo on decisions of the extraordinary AUDIT COMMISSION CORPORATE MANAGEMENT general meeting of shareholders No. 532-r). COMMITTEE As of December 31, 2015, the Board of Directors consisted of nine members, of whom two were independent directors and the remainders were representatives of the Russian Federation (including three public officers and four professional fiduciaries). GENERAL MEETING OF SHAREHOLDERS THE GENERAL MEETING OF SHAREHOLDERS IS THE HIGHEST DECISION-MAKING BODY OF RVC, WHICH DELIBERATES AND DECIDES ON IMPORTANT ISSUES, INCLUDING THE APPROVAL OF THE COMPANY’S CHARTER, AND APPROVES MAJOR TRANSACTIONS, ELECTS MEMBERS OF THE BOARD OF DIRECTORS AND BOTH COLLEGIAL AND SOLE EXECUTIVE BODIES OF THE COMPANY.
The Russian Federation is the sole shareholder of RVC. On behalf of ‣‣ The election of members to the Board of Directors of RVC (at the the Russian Federation, the shareholder rights are exercised by the extraordinary and annual general meetings of shareholders); Federal Agency for State Property Management (Rosimushchestvo). ‣‣ The approval of the annual report (with addenda) of RVC for 2014; ‣‣ The approval of the company’s annual audit report, including the In 2015, one annual general meeting of RVC’s shareholders and three financial statements for 2014; extraordinary meetings were convened. In accordance with Federal ‣‣ The distribution of dividends for RVC based on the results from 2014; Law No. 208-FZ on Joint Stock Companies and the RVC Charter, ‣‣ Payment of company dividends; the general meeting of shareholders made decisions regarding the ‣‣ Payment of reimbursements to members of the Board of Directors of following: RVC; ‣‣ Payment of reimbursements to members of the Audit Commission of ‣‣ Changes to the Regulations of the Management Board of RVC; RVC; ‣‣ The election of members to the Management Board of RVC; ‣‣ The election of members to the Audit Commission of RVC; ‣‣ The election of the CEO of RVC; ‣‣ The approval of the auditor for carrying out RVC’s 2015 annual audit.
92 VALUE OF FUNDAMENTALS www.rusventure.ru/en RVC ANNUAL REPORT 2015 93 RVC IN 2015 IN FIGURES OPENING ADDRESS BY THE RUSSIAN VENTURE PRIORITIES OF RVC'S CREATION OF THE NTI INVESTMENT ACTIVITY ACTIVITIES FOR THE EXECUTION OF INSTRUCTIONS FINANCIAL RESULTS CORPORATE SOCIAL RESPONSIBILITY APPENDIXES GENERAL DIRECTOR CAPITAL MARKET ACTIVITY FOR 2015-2016 PROJECT OFFICE DEVELOPMENT OF AN OF THE GOVERNMENT FOR 2015 GOVERNANCE AND SUSTAINABLE INNOVATION ECOSYSTEM REGARDING THE DEVELOPMENT DEVELOPMENT OF INNOVATION
MEMBERS OF THE BOARD OF DIRECTORS: MEETINGS OF THE BOARD OF DIRECTORS In 2015, fifteen meetings by the Board of Directors were convened, of which nine were in the form of absentee voting. On average, the meetings were convened four times per quarter. A total of 90 matters were considered by the Board of Directors.
Subject Number of matters considered Determining the company's priority lines of business: approving the strategic documentation for the long- 7 term period, RVC's annual business plan and budget, establishing RVC's KPIs Igor R. Agamirzian, Alexander A. Auzan, Gleb S. Nikitin, Establishing RVC-backed venture capital funds in accordance with the regulations governing the “Procedure 8 CEO, Chairman of the Management Dean of the Faculty of Economics at First Deputy Minister of Industry of the selection of asset management companies for transferring to them the fiduciary management of Board of RVC Lomonosov Moscow State University, Head and Trade of the Russian Federation monetary funds of the open joint stock company Russian Venture Company” of the Department of Applied Institutional Approval of other transactions reserved for the competence of the Board of Directors of the company 22 Economics, Doctor of Economics, Professor, independent director Approval of RVC internal normative acts 4 Matters initiated for consideration by Rosimushchestvo to execute the instructions of the President of the 10 Russian Federation and the Government of the Russian Federation Consideration of matters related to the activity of RVC-backed venture capital funds 9 Consideration of reporting issues relating to the selection of management companies and venture capital 4 funds, RVC's activity results, KPI performance, the workings of internal audit and risk management systems, RVC's procurement activities, and others. Matters relating to membership of the Management Board of the company and serving in the Management 3 Bodies of other companies Matters relating to the arrangements of the general meeting of the RVC's shareholders 9 Matters relating to the establishment of the RVC Board of Directors Committee 10 Boris G. Nuraliev, Dmitry N. Peskov, Alexander B. Povalko, Other 4 CEO of 1C, independent director Director of the Management Board of the Deputy Minister of Education and Science of Young Professionals agency for strategic the Russian Federation initiatives for promoting new projects COMMITTEES OF THE BOARD OF DIRECTORS To ensure the effective preliminary study of the most important issues and preparing recommendations for them, the Board of Directors of RVC has formed specialized Committees:
‣‣Strategic Planning Committee; ‣‣Audit and Ethics Committee; ‣‣Personnel and Compensation Committee; ‣‣Corporate Governance Committee.
The Committees of the Board of Directors of RVC are composed of members of the Board of Directors of RVC, the representatives Sergey G. Polyakov, Yuri A. Udaltsov, Oleg V. Fomichev, of State Ministries, and also independent experts who are the CEO of the Foundation for Assistance to Small Deputy Chairman of the Management Board State Secretary, Deputy Minister of Economic representatives of business and the innovation venture capital market. Innovative Enterprises of RUSNANO Development of the Russian Federation The Committees are headed by the members of the Board of Directors of RVC.
In its activities, each Committee is governed by the respective Regulations.
The members of the Committees of the Board of Directors who were All members of the Board of Directors are citizens of Biographies for the members of the Board of Directors can serving at the end of the reporting period were elected by the decision the Russian Federation and have no participation in RVC be viewed at: www.rusventure.ru/ru/company/directors/ of the Board of Directors of RVC on August 6, 2015. equity.
94 VALUE OF FUNDAMENTALS www.rusventure.ru/en RVC ANNUAL REPORT 2015 95 RVC IN 2015 IN FIGURES OPENING ADDRESS BY THE RUSSIAN VENTURE PRIORITIES OF RVC'S CREATION OF THE NTI INVESTMENT ACTIVITY ACTIVITIES FOR THE EXECUTION OF INSTRUCTIONS FINANCIAL RESULTS CORPORATE SOCIAL RESPONSIBILITY APPENDIXES GENERAL DIRECTOR CAPITAL MARKET ACTIVITY FOR 2015-2016 PROJECT OFFICE DEVELOPMENT OF AN OF THE GOVERNMENT FOR 2015 GOVERNANCE AND SUSTAINABLE INNOVATION ECOSYSTEM REGARDING THE DEVELOPMENT DEVELOPMENT OF INNOVATION
STRATEGIC PLANNING COMMITTEE PERSONNEL AND COMPENSATION COMMITTEE CORPORATE GOVERNANCE COMMITTEE ‣‣Oleg V. Teplov, Head of the Department of Economy Sector The Strategic Planning Committee assists the Board of the Directors Development of the Expert Management by the Administration of the The Personnel and Compensation Committee assists the Board The Corporate Governance Committee assists the Board of Directors in determining the priority lines of business and advises the Board of President of the Russian Federation; of Directors with the development of systems for staff motivation in developing and improving corporate governance systems and Directors regarding the strategic development of the company. Also, ‣‣Oleg L. Khorokhordin, Deputy Head of the Secretariat of the Deputy (including members of the Management Board) and respective practice. in accordance with the decision of the Board of Directors of RVC on Chairman of the Government of the Russian Federation. internal regulations of the company. April 20, 2015, Protocol No. 2, the Committee is authorized to consider The Committee’s activities are regulated by the Regulations approved activity plans within the National Technological Initiative and apply the Meetings of the Strategic Planning Committee The Committee’s activities are regulated by the Regulations approved by the decision of the Board of Directors of RVC on February 3, 2015, control of its implementation, and also provide recommendations for its In 2015, the Strategic Planning Committee of RVC convened 7 ordinary by the decision of the Board of Directors of RVC on June 8, 2009, Protocol No. 1. correction. meetings. Protocol No. 2, and amendments approved by the decision of the Board of Directors of RVC on September 24, 2009. Members of the Corporate Governance Committee The activities of the Committee are regulated by the Regulation approved by the decision of the Board of Directors of RVC on June 8, AUDIT AND ETHICS COMMITTEE Members of the Personnel and Compensation Committee Chairman of the Committee: 2009, Protocol No. 2, with amendments approved by the decision of the The Audit and Integrity Committee assists the Board of Directors with ‣‣ Alexander A. Auzan, Dean of the Faculty of Economics at Lomonosov Board of Directors of RVC of September 24, 2009, Protocol No. 4, and of issues regarding the approval of non-financial reporting, verification of The Chairman of the Committee: Moscow State University, Head of the Department of Applied April 20, 2015, Protocol No. 2. KPI calculation, and integrity issues. ‣‣ Boris G. Nuraliev, CEO of 1C (a member of the Board of Directors of Institutional Economics, Doctor of Economics, Professor, (a member RVC, independent director). of the Board of Directors of RVC, independent director). Members of the Strategic Planning Committee The Committee’s activities are governed by the Regulations, approved by decision of the Board of Directors of RVC on June 14, 2011, Protocol Committee Members: Committee Members: The Chairman of the Committee: No. 3, with amendments approved by the decision of the Board of ‣‣ Ekaterina Y. Gorokhova, Vice President of Kelly Services Inc. (USA) and ‣‣ Igor R. Agamirzian, CEO, Chairman of the Management Board of RVC ‣‣ Dmitry N. Peskov, Director of the Management Board of the Young Directors of RVC on July 30, 2013, Protocol No. 7. CEO of Kelly Services CIS; (a member of the Board of Directors of RVC); Professionals agency for strategic initiatives for promoting new ‣‣ Sergey N. Leshchenko, Deputy Director of the Department of Social ‣‣ Alexander V. Ikonnikov, Chairman of the Supervisory Board of the projects. Members of the Audit and Integrity Committee Development and Innovation of the Ministry of Economic Development Association of Independent Directors. of the Russian Federation. Committee Members: Chairman of the Committee: Meetings of the Corporate Governance Committee ‣‣Igor R. Agamirzian, CEO, Chairman of the Management Board of ‣‣Yuri A. Udaltsov, Head of the Investment Division of Venture Capital, Meetings of the Personnel and Compensation Committee In 2015, the Corporate Governance Committee of the Board of RVC (a member of the Board of Directors of RVC) Deputy Chairman of the Management Board of RUSNANO LLC (a In 2015, the Personnel and Compensation Committee of the Board of Directors of RVC held two ordinary meetings. ‣‣Grigory V. Andrushak, Director of the Department for Strategy, member of the Board of Directors of RVC). Directors of RVC held one ordinary meeting. Analysis and Forecasting of the Ministry of Education and Science of the Russian Federation; Committee Members: ‣‣Alexander A. Auzan, Dean of the Faculty of Economics at Lomonosov ‣‣ Sergey G. Polyakov, CEO of the Foundation for Assistance to Small Moscow State University, Head of the Department of Applied Innovative Enterprises; Institutional Economics, Doctor of Economics, Professor, (a member ‣‣ Sergey N. Leshchenko, Deputy Director of the Department of Social of the Board of Directors of RVC, independent director); Development and Innovation of the Ministry of Economic Development ‣‣Vasily V. Burov, Chairman of the Board of Directors of Wikivote, a of the Russian Federation. member of the Expert Council of the Government of the Russian Federation; Meetings of the Audit and Integrity Committee ‣‣Evgeny V. Kovnir, Deputy Director of the Management Board of the In 2015, the Audit and Integrity Committee of the Board of Directors of Young Professionals agency for strategic initiatives for promoting RVC convened three ordinary meetings. new projects; ‣‣Sergey N. Leshchenko, Deputy Director of the Department of Social Development and Innovation of the Ministry of Economic Development of the Russian Federation; ‣‣Vasily S. Osmakov, Director of the Department of Strategic Development and Project Management of the Ministry of Industry and Trade of the Russian Federation; ‣‣Konstantin E. Polunin, Partner and Managing Director of The Boston Consulting Group; ‣‣Aleksey E. Repik, President of Business Russia public organization, Chairman of the Board of Directors of R-PHARM CJSC, Novosibkhimpharm OJSC, and ORTAT CJSC pharmaceutical complex;
96 VALUE OF FUNDAMENTALS www.rusventure.ru/en RVC ANNUAL REPORT 2015 97 RVC IN 2015 IN FIGURES OPENING ADDRESS BY THE RUSSIAN VENTURE PRIORITIES OF RVC'S CREATION OF THE NTI INVESTMENT ACTIVITY ACTIVITIES FOR THE EXECUTION OF INSTRUCTIONS FINANCIAL RESULTS CORPORATE SOCIAL RESPONSIBILITY APPENDIXES GENERAL DIRECTOR CAPITAL MARKET ACTIVITY FOR 2015-2016 PROJECT OFFICE DEVELOPMENT OF AN OF THE GOVERNMENT FOR 2015 GOVERNANCE AND SUSTAINABLE INNOVATION ECOSYSTEM REGARDING THE DEVELOPMENT DEVELOPMENT OF INNOVATION
MANAGEMENT
THE MANAGEMENT BOARD ADMINISTERS THE DAY-TO-DAY OPERATIONS OF THE COMPANY. Members of the Management Board are elected by the decision at the The term of office for members of the Management Board is one year, general meeting of the shareholders of RVC and consist of no less than except for Chairman of the Management Board. If, by the time of expiry five members. The Management Board includes the CEO, who serves of the Board member’s term, the RVC’s shareholders fail to decide on as Chairman of the Board, the Deputy CEO, directors of subsidiaries, the election of new Board members, the term of office for the current and other management employees as instructed by the CEO. members of the Management Board of RVC shall be extended until the respective decision is made at the general meeting of shareholders of The activities of the executive bodies are regulated by the Company RVC. Charter and the Management Board Regulations of RVC (approved by Order No. 1425-r of Rosimushchestvo on August 11, 2009, with The members of the Management Board neither hold any shares of amendments approved by Orders of Rosimushchestvo No. 1198-r on RVC nor entered into any transactions with them during the reporting Igor R. Agamirzian, Egor V. Beketov, Gulnara Z. Bikkulova, June 30, 2010, No. 1438-r on July 19, 2011, and No. 43-r on February 3, year. CEO, Chairman of the Management Director of Biofond RVC LLC Head of Innovation Markets 2015). Board of RVC Department of RVC
MEMBERS OF THE MANAGEMENT BOARD MEETINGS OF THE MANAGEMENT BOARD The members of the Management Board of RVC, as of the end of 2015, The Management Board convenes two meetings, in presentia, a were elected by the decision of an extraordinary general meeting of month. From time to time, the meetings may be convened more shareholders on February 3, 2015 (by Order of Rosimushchestvo, on frequently, including by means of absentee voting. decisions of the extraordinary general meeting of shareholders No. 43-r). During the reporting year, the Management Board convened 29 meetings (of which six were in the form of absentee voting), at which 228 matters were considered. Andrey V. Vvedensky, Roman N. Kosyachkov, Evgeny B. Kuznetsov, Head of Investment Programs of RVC, Deputy CEO and Managing Deputy CEO and Head of Subject Number of matters Director of RVC Capital LLC Director of RVC Project Office of RVC considered
RVC's business plan performance in 2015 106
Defining the position of RVC representatives in the bodies of RVC-backed funds, as well as considering other 68 issues related to RVC-backed funds (including subsidiary funds)
Selection of management companies and venture capital funds 5
Reporting issues (concerning RVC activities, structural departments, and others) 14
Internal organizational issues, including those regarding the company's international activities, purchasing 29 activities, executing the instructions of Rosimushchestvo, and others
Alexander A. Loktev, Alexander E. Potapov, Aleksey Y. Teleshev, Other issues 6 Director of Infrafond RVC LLC Deputy CEO and Chief Operations Director of FPI RVC LLC Officer of RVC
Biographies for the members of the Board of Directors can be viewed at www.rusventure.ru/ru/company/structure/pravlenie.php
98 VALUE OF FUNDAMENTALS www.rusventure.ru/en RVC ANNUAL REPORT 2015 99 RVC IN 2015 IN FIGURES OPENING ADDRESS BY THE RUSSIAN VENTURE PRIORITIES OF RVC'S CREATION OF THE NTI INVESTMENT ACTIVITY ACTIVITIES FOR THE EXECUTION OF INSTRUCTIONS FINANCIAL RESULTS CORPORATE SOCIAL RESPONSIBILITY APPENDIXES GENERAL DIRECTOR CAPITAL MARKET ACTIVITY FOR 2015-2016 PROJECT OFFICE DEVELOPMENT OF AN OF THE GOVERNMENT FOR 2015 GOVERNANCE AND SUSTAINABLE INNOVATION ECOSYSTEM REGARDING THE DEVELOPMENT DEVELOPMENT OF INNOVATION
CEO
IGOR R. AGAMIRZIAN HAS BEEN THE CEO OF RVC SINCE APRIL 2009 (REELECTED ON APRIL 23, 2015) AND THE CHAIRMAN OF THE MANAGEMENT BOARD SINCE MARCH 2010.
Mikhail P. Kirpichnikov, Vladimir N. Knyaginin, Mikhail V. Kozlov, Mikhail P. Krasnov, Dean, Biology faculty of MSU President of the Moscow fund for the Deputy CEO of RusHydro Founder of Verysell Center for Strategic Development International ADVISORY BOARD THE ADVISORY BOARD ASSISTS THE MANAGEMENT BODIES OF RVC WITH THE CURRENT DEVELOPMENT CHALLENGES OF THE INNOVATION MARKET AND OTHER ISSUES, PROVIDES EXPERT ADVICE TO THE PROGRAMS AND INITIATIVES OF RVC, AND ENSURES INCREASED TRANSPARENCY OF THE ACTIVITIES OF RVC FOR PARTICIPANTS IN THE RUSSIAN INNOVATION MARKET.
Nikolay Y. Kuteev, Nickolay Y. Lebedev, Dmitry E. Mendrelyuk, Albina I. Nikkonen, CEO, Russian Technological Chairman of the Supervisory Media entrepreneur Executive Director, RVCA MEMBERS OF THE ADVISORY BOARD: Agency Board of Transas Group
Sergey M. Belousov, Alexey I. Borovkov, Alexander V. Galitskiy, Michael Alemu Gorsky, Aleksey K. Ponomarev, Yury V. Simachev, Ekaterina G. Shapochka, Mark M. Shmulevich, CEO of Acronis Pro-rector of Perspective Projects, Management Partner, CEO of Olymp-Business Vice President of Strategy and Deputy CEO of the Russian Executive Director of Forum Main Strategic and Operational SpbSPU Almaz Capital Partners publishing Industry Communications of Science Fund analytical center Director, Acronis Skolkovo Institute of Science and Technology
Leonid M. Gokhberg, Andrey Y. Zotov, Alexander B. Idrisov, German V. Kaplun, Andrey V. Sharonov, Yan E. David, Marina V. Yanina, First Pro-rector, NRU HSE Management Partner, Management Partner, Director of Strategic Development, Rector of Skolkovo Moscow Head of the Board of Directors, Vice-President of Corporate ADJ Consulting Strategy Partners TMT Investments School of Management ABBYY Relations, Yandex
100 VALUE OF FUNDAMENTALS www.rusventure.ru/en RVC ANNUAL REPORT 2015 101 RVC IN 2015 IN FIGURES OPENING ADDRESS BY THE RUSSIAN VENTURE PRIORITIES OF RVC'S CREATION OF THE NTI INVESTMENT ACTIVITY ACTIVITIES FOR THE EXECUTION OF INSTRUCTIONS FINANCIAL RESULTS CORPORATE SOCIAL RESPONSIBILITY APPENDIXES GENERAL DIRECTOR CAPITAL MARKET ACTIVITY FOR 2015-2016 PROJECT OFFICE DEVELOPMENT OF AN OF THE GOVERNMENT FOR 2015 GOVERNANCE AND SUSTAINABLE INNOVATION ECOSYSTEM REGARDING THE DEVELOPMENT DEVELOPMENT OF INNOVATION
AUDIT, CONTROL AND RISK MANAGEMENT THE SYSTEM OF INTERNAL CONTROL, MEMBERS OF THE AUDIT COMMISSION EXTERNAL AUDITOR RISK MANAGEMENT SYSTEM (Elected by the decision of the annual general meeting of AUDIT AND RISK MANAGEMENT To verify and confirm the accuracy of its annual financial statements, RVC has developed and implemented a Risk Management System shareholders on June 30, 2015) The audit commission performs the control of RVC’s financial and RVC hires a professional auditor, who is approved by the general (hereinafter RMS). business activity. An external independent auditor verifies the financial ‣‣ Aleksey M. Demchishin, Council of the Deputy Head of the meeting of shareholders. statements (bookkeeping report) of the company, as approved by the Management Board of St. Petersburg Bank; RMS is a continuous process that affects all of the company’s general meeting of shareholders selected in an open contest. The ‣‣ Georgy Z. Kotlyar, Head of the Department of Social Development and RVC’s financial statements in 2015 were audited by AKG Biznes-KRUG activities. It is aimed at identifying potential events that may influence system of internal control, audit and risk management is represented Innovation of the Ministry of Economic Development of the Russian Ltd (Moscow). the activities of RVC, and also at managing risks to an acceptable level by the relative structure divisions of the company. Federation; and ensuring the achievement of strategic and programmatic goals of ‣‣ Sergey N. Leshchenko, Deputy Director of the Department of Social INTERNAL CONTROL AND AUDIT the company. RVC carries out complex work to develop a system of internal control, Development and Innovation of the Ministry of Economic Development audit and risk management that corresponds to the best practices of of the Russian Federation; The system of internal control and auditing that operates in RVC is RMS is focused on providing improved effectiveness of the company in corporate governance. ‣‣ Andrey G. Molev, Deputy Director of the Department of Budget represented by the Internal Audit Service and the Department of Risk short-term, medium-term and long-term perspectives, in accordance Planning and Control of Agranta LLC; Analysis. The system for internal control and auditing ensures the with the priority lines of work. AUDIT COMMISSION ‣‣ Ivan I. Chigirin, Head of the Department of Internal Control of compliance of activities with RVC and its subsidiaries, as established RusHydro. by Russian legislation and company documents. The task of the Among RMS tasks are the formation of a unified approach to risk The Audit Commission is elected by the general meeting Internal Audit Service is the effective internal control of the activities identification and assessment, reaction to risks, the development of shareholders of RVC. The activities of the Audit Commission are of RVC and its subsidiaries. The Department for Risk Analysis of control procedures, the exchange of information regarding risks, to control the company’s financial and business activities in order ensures the coordination of work for the structural departments of setting of goals and aims for risk management by RVC management to increase efficiency and to protect shareholder interests. the company and its subsidiaries to minimize risks in the process of bodies, monitoring risks and educating workers. implementing programs and projects. The activities of the Audit Commission are set out in RVC’s Regulations The aims of RMS: on the Audit Commission. RVC takes measures to improve the organizational and legal basis for the functioning of the system of internal control and audit, bringing ‣‣ Increasing the efficiency of strategic and program activities, and The Audit Commission is composed of not less than three and it into compliance with the recommendations of the Corporate achieving the planned indicators; not more than five members elected by the general meeting of Governance Commission of RVC, the Corporate Governance Code and ‣‣ Creating the conditions for rational use of resources; shareholders of RVC. Members of the Audit Commission must not best practice. ‣‣ Establishing activity priorities and taking optimal management be members of the Board of Directors simultaneously, nor hold other decisions; positions of responsibility within the management bodies of RVC. ‣‣ The improvement of internal and external communications at RVC; ‣‣ An operative reaction to changes in risks, including newly identified challenges.
102 VALUE OF FUNDAMENTALS www.rusventure.ru/en RVC ANNUAL REPORT 2015 103 RVC IN 2015 IN FIGURES OPENING ADDRESS BY THE RUSSIAN VENTURE PRIORITIES OF RVC'S CREATION OF THE NTI INVESTMENT ACTIVITY ACTIVITIES FOR THE EXECUTION OF INSTRUCTIONS FINANCIAL RESULTS CORPORATE SOCIAL RESPONSIBILITY APPENDIXES GENERAL DIRECTOR CAPITAL MARKET ACTIVITY FOR 2015-2016 PROJECT OFFICE DEVELOPMENT OF AN OF THE GOVERNMENT FOR 2015 GOVERNANCE AND SUSTAINABLE INNOVATION ECOSYSTEM REGARDING THE DEVELOPMENT DEVELOPMENT OF INNOVATION DISTRIBUTION OF NEW PROFIT FOR 2015 AND DIVIDEND POLICY
The outlined goals are achievable by: ‣‣ The implementation of plans to reduce the current level of risk; The decision on net profit distribution of RVC, received at the end on the results of the past year. In accordance with the directive of ‣‣ Monitoring and auditing of risks; of 2015, is made at the annual general meeting of shareholders, Rosimushchesto No. PP-05/20009 as of May 20, 2016, RVC shall direct ‣‣ The development of a policy of risk management and organizational ‣‣ The development of measures to manage risks; which is planned to be held by the end of June 2016. According to 50 % of the net profit, or RUB 752,384 thousand, to dividend distribution legal regulation of RMS; ‣‣ Informing management bodies of RVC about changing risks. the recommendations of Rosimushchestvo, RVC annually directs upon results of 2015. ‣‣ The creation of a culture of risk management in the company, to dividend distribution not less than 25 % of the net profit received understanding by the management and employees of the company The strategy of RVC in the field of risk management is aimed at based on principles and approaches to risk management; supporting a corporate culture, in accordance with which risk ‣‣ The embedding of risk management in the general management identification and reaction to risks is an integral component of the process of RVC; management process in general, and in particular of planning, the ‣‣ Consistent implementation of RMS as a continuous working process management of current activities, and corporate management. Risk INVESTMENT DECISION-MAKING PROCESS in the structural departments of RVC; management is implemented systematically using a preventative ‣‣ The centralization of risk management activities; the exchange approach. of information within the company about risks and negative AT THE MEETINGS OF INVESTMENT COMMITTEES OF RVC-BACKED FUNDS, THE REPRESENTATIVES consequences of ignoring them; OF RVC HAVE THE RIGHT OF CONSULTATIVE CAPACITY FOR ALL INVESTMENT DECISIONS (THAT IS, PARTICIPATING IN DISCUSSIONS BUT NOT VOTING, TAKING THE ROLE OF LIMITED PARTNER).
The project analysis service performs control of projects, presented ‣‣ The formation of methodological recommendations for the MONITORING INTERNAL SETTING GOALS for consideration by the Investment Committees (the management) management of the сompany that is aimed at increasing the efficiency AND TRAINING ENVIRONMENT AND TASKS of RVC-backed funds, and prepares recommendations, including of funds and their portfolio companies; outlining important aspects and risks of the project. The representative ‣‣ The offering of expert methodological support to RVC-backed funds of RVC, taking a decision by voting at the Investment Committee, is and regional venture funds, supported by RVC, on issues of using led by the comments set out in the document, and also brings them various investment instruments; to the attention of other members of the Investment Committee (the ‣‣ The holding of seminars designed to increase the professional level of management). The employees in their work are governed by the internal employees of regional venture funds supported by RVC. methodological documents of RVC and also by Russian and global best practices. Also, employees of monitoring services participate in meetings of collegial management bodies, in agreements and the monitoring RISK INFORMATION IDENTIFICATION The monitoring service of the investment portfolio performs the of executive decisions of trustee/supervisory boards, and prepare MANAGEMENT ON RISKS OF RISKS following tasks: recommendations for improving activities and the widening of SYSTEM functions of regional venture funds, supported by RVC. ‣‣ The implementation of monitoring of the current situation of RVC- backed funds and their portfolio companies; In their activities, employees of the monitoring service are governed by ‣‣ The carrying out of post-investment analyses of funds and portfolio internal RVC methodological documents. companies, which includes the assessment of execution of business plans, investment memoranda, financial models, and also the cost of assets and potential recoveries;
CONTROL RESPONSE ASSESSMENT PROCEDURES TO RISKS OF RISKS
104 VALUE OF FUNDAMENTALS www.rusventure.ru/en RVC ANNUAL REPORT 2015 105 TargetsTargets and mission and mission of RVC of as RVC a key as statea key instrument state instrument for for SOCIAL RESPONSIBILITY the nationalthe national innovation innovation system system development development are definitely are definitely of non-profitof non-profit and socially-focused and socially-focused nature, nature, and the and scale the scale of chalengesof chalenges met by met the bycompany the company makes makes it particularly it particularly AND SUSTAINABLEAND SUSTAINABLE DEVELOPMENT responsibleresponsible for social for socialand economic and economic prosperity prosperity of the ofsociety. the society.
Social responsibilitySocial responsibility 108 108 Human ResourcesHuman Resources Management Management 108 108 ProcurementProcurement Activities Activities 109 109 Anti-CorruptionAnti-Corruption Efforts Efforts 109 109 RVC IN 2015 IN FIGURES OPENING ADDRESS BY THE RUSSIAN VENTURE PRIORITIES OF RVC'S CREATION OF THE NTI INVESTMENT ACTIVITY ACTIVITIES FOR THE EXECUTION OF INSTRUCTIONS FINANCIAL RESULTS CORPORATE SOCIAL RESPONSIBILITY APPENDIXES GENERAL DIRECTOR CAPITAL MARKET ACTIVITY FOR 2015-2016 PROJECT OFFICE DEVELOPMENT OF AN OF THE GOVERNMENT FOR 2015 GOVERNANCE AND SUSTAINABLE INNOVATION ECOSYSTEM REGARDING THE DEVELOPMENT DEVELOPMENT OF INNOVATION
SOCIAL RESPONSIBILITY PROCUREMENT ACTIVITIES
RVC’S OBJECTIVES AND MISSION, AS THE KEY INSTRUMENT OF THE STATE IN BUILDING ITS OWN When procuring goods, works and services, the company follows the RVC realizes its procurements within the framework of the program Federal Law FZ-223 on the procurement of goods, works and services and project activities in the form of competitive negotiations using NATIONAL INNOVATION SYSTEM, ARE OF A NON-PROFIT, SOCIALLY ORIENTED NATURE. by certain types of legal entities, RVC Procurement Regulations, and the RFP (Request for Proposal) model, a system of program orders adheres to the following principles: that presents the market with a public announcement of the tasks The company’s strategy is focused not only on the development in In its activities, the company aims to take into account the principles ‣‣The accessibility of procurement information; and issues that the сompany seeks to solve, which is followed by the Russia of the venture capital industry, but also on projects related to of social responsibility towards participants of the venture capital ‣‣The transparency of procurement, which enables the possibility of collection of proposals for achieving the desired results. the construction of balanced innovation infrastructure and forming a market, partners, employees, society and the state, while ensuring monitoring and control at any stage of the procurement process; class of venture capital investors and technology entrepreneurs. By the openness, consistency and materiality of its activities. The ‣‣Using preferential competitive procedures for selecting suppliers This approach allows for: developing this system of services and instruments, the company is investment process is carried out in accordance with specific rules and (executants, contractors); ‣‣The application of the unique experience, creative potential and focused on the proportional development of all parts of the national restrictions1. ‣‣Fairness, and the absence of prejudice, discrimination or expertise of market participants to develop new and atypical ecosystem and on the systemic effect of these implemented projects. unwarranted restrictions on competition, towards the parties of the approaches to achieving goals; procurement process, including the prohibition of coordination of the ‣‣The improvement of the quality of communication with project procurement process by the company or the creation of beneficial contractors and enhances their responsibility; conditions thereto; ‣‣Establishing transparent mechanisms for managing project volume, ‣‣Cost-effective expenditure of monetary funds for the procurement quality and cost control, thereby improving the сompany’s overall HUMAN RESOURCES MANAGEMENT of goods, work and services, and the implementation of cost-cutting performance. measures; THE MAIN TASK OF THE HR DEPARTMENT IS TO ASSIST THE COMPANY IN IMPLEMENTING ITS ‣‣The establishment of measurable requirements for participants in The use of the RFP model enables RVC to apply the best business the procurement process. practices employed by major international development institutions, PROJECTS AND INITIATIVES, AS WELL AS ACHIEVING ITS KEY PERFORMANCE INDICATORS. such as the World Bank, the International Monetary Funds, the COMPETITIVE PROCUREMENT PROCEDURES European Bank for Reconstruction and Development, and others. The following lines of the HR policy were defined in order to achieve its STAFF SIZE OF RVC The following competitive procedures are preferable and shall be goals in 2015: The average headcount in 2015 was 136 employees. applied to any procurement by RVC: Information on the procurement activities of RVC and its subsidiaries ‣‣Tenders; can be found at the official website that posts information on ‣‣Increasing the efficiency and competitiveness of employees by: The gender structure of employees as of the year-end in 2015 was 56 % ‣‣Auctions; procurement by certain types of legal entities at http://zakupki.gov.ru. ––Introducing a system for evaluating staff, which is a universal women and 44 % men. ‣‣Commercial inquiry; instrument applied during recruitment, placement and staff ‣‣Competitive negotiations; rotation, and also when creating employee reserves and working ‣‣The request for quotation. teams; TRAINING AND FURTHER EDUCATION OF EMPLOYEES ––Improving the system of training, professional development, and During the reporting year, 76 employees completed training on 46 developing employees in accordance with the demands of the courses for professional development and training. business. ANTI-CORRUPTION EFFORTS ‣‣An audit of the system for employee motivation and remuneration In 2015, the сompany adopted the Anti-Corruption Policy of RVC, which included as No. 393 in the consolidated register of participants of the at RVC, and developing and introducing instruments that ensure the is the founding document for the prevention, detection, suppression Anti-Corruption Charter of Russian Business (a certificate of RVC’s effective functioning of the salary and bonus system. and minimization of consequences from possible manifestations of affiliation with the Anti-Corruption Charger of Russian Business No. ‣‣Supporting the socio-psychological climate in the company: corruption in the сompany. 989 from April 27, 2015). ––Increasing employee loyalty and the prevention of labor disputes; ––Evaluating satisfaction / loyalty / involvement of employees; The anti-corruption policy reflects the commitment of RVC and of With the aim of preventing and combating corruption at RVC, a plan for ––Developing and implementing instruments for non-material its employees to the highest ethical standards of doing business and anti-corruption activities (order No. 02/16 from January 19, 2016) was motivation, including those aimed at retaining the key workers of maintaining the business’s reputation, as well as striving to improve approved as follows: RVC. the corporate culture and following best corporate governance ‣‣A series of measures to be taken by the structural units of the practices. сompany, aimed at ensuring the compliance of RVC activities with the requirements of applicable legislation; The сompany, within the framework of its competence, is initiating the ‣‣The creation of mechanisms for analyzing, detecting and evaluating introduction of anti-corruption policies in its subsidiaries and affiliates risks in activities, and ensuring comprehensive protection by RVC; that are analogous with RVC’s anti-corruption policy, as well as ‣‣Strengthening the trust of shareholders, the investment community making efforts to comply with the provisions of this document in joint and contractors in RVC activities; companies and associations, as well as by contractors. ‣‣Instilling in RVC’s employees a consciousness of anti-corruption, a deeper understanding of the legislation of the Russian Federation in By Order of the President of the Russian Union of Industrialists and the area of combating corruption, the Anti-Corruption Policy of RVC, Entrepreneurs (letter RSPP 663/05 on April 22, 2015), RVC was and ensuring its practical application. 1 More detailed information about the investment rules can be found at: http://www.rusventure.ru/ru/investments/rules_and_restrictions/
108 VALUE OF FUNDAMENTALS www.rusventure.ru/en RVC ANNUAL REPORT 2015 109 APPENDIXES
Map of RVC Partner Interactions in 2015 112 Annotations of Analytical Materials 114 Contacts 124 Glossary 126 Feedback Questionnaire 128 Disclaimer 130 MAPMAP OF RVC OF RVCPARTNER PARTNER INTERACTIONS INTERACTIONS IN 2015 IN 2015
DIRECTIONSDIRECTIONS OF ACTIVITY OF ACTIVITY
Creation of instrumentsCreation for of instruments for Support for regional ventureSupport for regional venture Participation in developmentParticipation of in developmentFormation ofof an effectiveFormation system of an effectivefinancial system and non-financial financial and non-financial capital funds and developmentcapital funds and development Creation of instrumentsCreation for of instruments for Supporting innovationSupporting activity innovationDevelopment activity of competenciesDevelopment of competenciesrecommendations recommendationsfor the future forfor creating,the future protecting for creating, and protectingof national and "technologyof national "technology support for infrastructuresupport for infrastructureFormation of instrumentsFormation for of instrumentsCreation of forfinancial instrumentsCreation of financialaccelerating instruments startups acceleratingand startups and of universities and ofscientific universities andof scientific entrepreneurs, investorsof entrepreneurs, and investorsimprovements and to theimprovements national to thecommercializing national thecommercializing results of thechampions", results of exportchampions", support and export support and of technological innovationof technological supporting innovation creation ofsupporting corporate creationfor supporting of corporate technological for supporting technologicalattracting investment attractingin investmentPopularization in and promotionPopularization and promotion organizations, supportorganizations, of supportdevelopers of in the spheredevelopers of in the sphereinnovation of system innovationof the systemintellectual of the activityintellectual in the sphere activity interaction in the sphere with leadinginteraction centers with leadingImplementation centers of Implementationthe National of the National enterprise enterprise and industry investmentand funds industry investmententerprise funds enterprise high-tech projects high-tech projectsof innovation activity of innovation activity technology transfertechnology transfertechnical innovationtechnical innovationRussian FederationRussian Federationof technological innovationof technological innovationof standardization of standardizationTechnological InitiativeTechnological Initiative PARTNERS PARTNERS
Government authoritiesGovernment and expert authorities and expert organizations that supportorganizations them that support them
Technological companiesTechnological and companies and entrepreneurs entrepreneurs
Foreign and Russian investorsForeign and Russian investors
Innovation developmentInnovation institutes development institutes
Consulting service companies,Consulting service companies, competency centers competency centers
Technology platforms,Technology platforms, professional and analyticalprofessional and analytical community community
Science and educationalScience and educational organizations, educationorganizations, centers education centers
Private and state corporationsPrivate and state corporations
Innovation infrastructureInnovation facilities infrastructure facilities
NTI working groups andNTI working groups and technology network communitiestechnology network communities
Media market participantsMedia market participants
International organizationsInternational for organizations for technological and innovationtechnological and innovation development development
RESULTS RESULTSAnnual market researchAnnual carried market researchProgram carriedto raise the Program to raiseVenture the funds createdVenture in funds createdFirst federal in platform Firstfor federal platformRating forcreated for participantsRating created of the for participants of the Development of DevelopmentInnovation of InnovationSystem prepared forSystem prepared forNational Report onNational Innovation Report onConcept Innovation for CreationConcept and for CreationWorking and groups formedWorking in groups formedProjects in were developedProjects were developed out by PE&VC in partnershipout by PE&VC inqualification partnership on "managingqualification onpartnership "managing with privatepartnership withcreation private and developmentcreation and developmentventure capital marketventure (venture capital funds, market (venture funds, Ecosystems of UniversitiesEcosystems of Universitiesexchanging experienceexchanging between experience in Russia between prepared in in Russia preparedFunctioning in of a PatentFunctioning Fund of a Patentthe perspective Fund areasthe ofperspective areasfor NTI of road maps.for The NTI road maps. The with RVCA. with RVCA. corporate venture funds"corporate ventureinvestors: funds" North Energyinvestors: Fund I Northof Energy instruments Fund I for corporateof instruments business-angels,for corporate corporatebusiness-angels, venture corporate venture and Scientific Organizationsand Scientific Organizationsrepresentatives of therepresentatives innovation ofpartnership the innovation with thepartnership Expert with thewas Expert formed in partnershipwas formed with in partnershipInternet of with Things, InternetRational of Things,development Rational was carrieddevelopment was carried implemented. A seriesimplemented. of ASeed series IPA, of Phystech VenturesSeed IPA, II Phystechacceleration Ventures was II launched.acceleration wascapital launched. funds, strategycapital corporations) funds, strategy corporations) project implementedproject in implementedcommunity in and technologycommunity and technologyCouncil of the GovernmentCouncil of the Governmentthe International Institutethe International of InstituteCity, and of Big Data,City, in and Big Data,out in under leadershipout of under leadership of Relaunch carried out ofRelaunch regional carried educational out of regional events organizededucational eventsIPA, Lifeorganized Systems IPA.IPA, Life Systems IPA. in partnership with EYin, partnershipVenture with EY, Venture partnership withpartnership MSU, ITMO with, MSUentrepreneurs, ITMO, withinentrepreneurs the RSPC withinof thethe RSPCRussian Federationof the Russian, FederationIndustrial Prope., Industrial Prope. cooperation with thecooperation Federal with theworking Federal groups consistingworking groups consisting venture capital funds venturein a new capital fundsfor sharing in a new best practicefor sharingin best practice in Club, NABA, IR&DclubClub,, RVCANABA and, IR&Dclub , RVCA and TSU, NSU, SPbSUTSU and, NSU the, SPbSU module and the program in modulepartnership program inMininstry partnership of EconomicMininstry of Economic Agency for TechnicalAgency for Technicalof representatives of therepresentatives of the format in partnership formatwith in partnershipcreating with corporate venturecreating corporate venture Deloitte. Deloitte. project office projectof the 5-100 office of withthe LOGA5-100 Group andwith MTILOGA GroupDevelopment and MTI of Developmentthe of Programthe implmentedProgram for implmentedRegulating for and MetrologyRegulating and Metrologyprofessional environment,professional environment, government authoritygovernment bodies authorityfunds andbodies promoting fundsopen and promoting open program. program. Scienftific UniversityScienftific. UniversityRussian. FederationRussian, BCG Federationexport, BCG support of Russianexport support of (ROSSTANDART)Russian (ROSSTANDART). The including:. The technologicalincluding: technological TechUspech rating preparedTechUspech for fast rating prepared for fast in Nizhegorod and Tomskin Nizhegorod andinnovation Tomsk instrumentsinnovation in instruments in and the Center forand Strategic the Center fortechnology Strategic companies technology in companiesworking in groups wereworking aimed groups wereenterprise, aimed scientists,enterprise, scientists, developing high-tech developingcompanies high-tech companies regions, and Stavropolskregions, and and Stavropolskpartnership and with the Nationalpartnership with the National Active professionalActive community professional Program community implemented Program to implementedDevelopments to . Developments. partnership with RUSSOFTpartnership with RUSSOFTat cooperation withat the cooperation withrepresentatives the representativesof of in partnership with thein National partnership with the National Perm krais. Perm krais. Research UniversityResearch Higher University Higher formed and involvedformed in theand involvedsupport in the five educationalsupport five educational NP, PSS NP, RadtechNP, PSS NP, RadtechInternational OrganizationInternational Organizationgovernment authoritiesgovernment and authorities and Research UniversityResearch Higher School University Higher School School of Economics.School of Economics. development of technologydevelopment of technologyprograms for business-programs for business- Association, and AssociationMinistry , andfor Ministry Standardization for Standardizationdevelopment institutesdevelopment. institutes. of Economics, PwCof and Economics MSP Bank, PwC. and MSP Bank. transfer in Russiantransfer universities in Russian angels universities in partnership angels with in the partnership with the of Economic Developmentof Economic Development(ISO), the International (ISO), the InternationalThe Presidium of theThe President Presidium of the President Communication LaboratoryCommunication project Laboratory project and scientific centersand scientific in centersassociations in BAURassociations, BAS, BAUR, BAS, of the Russian Federation.of the Russian Federation.Electrotechnical Electrotechnical of the Russian Federationof the Russian Federation implemented for developmentimplemented of for development of partnership withpartnership Ingriya with IngriyaSOBA, SmartHub SOBAventure, SmartHub venture 138 Russian companies138 Russian were companiesCommission were (IEC)Commission and (IEC)for andEconomic Modernizationfor Economic Modernization communications andcommunications informational and informational business incubatorbusiness. incubatorcompany. and Samaracompany and Samara supported. supported. other structures in otherthe area structures of inand the Innovationarea of Developmentand Innovation Development openness of scientificopenness and educational of scientific and educational regional innovationregional. innovation. international standardization.international standardization.of Russia approvedof in Russia 2015 approved in 2015 institutions in partnershipinstitutions with MAMI in partnership, with MAMI, four road maps for fourmarket road maps for market ITMO and Russian ITMOSponsorship and Russian Sponsorship 3rd public independent3rd public report independent report development: AeroNet,development: AeroNet, Forum. Forum. produced on implementationproduced on implementation AutoNet, MariNet andAutoNet, MariNet and of the Strategy of Innovationof the Strategy of Innovation Program implementedProgram to popularize implemented to popularize NeuroNet. NeuroNet. Development of theDevelopment Russian of the Russian scientific, technical andscientific, innovation technical and innovation activity in partnershipactivity with the in partnership with the Federation until 2020Federation (for until 2020 (for Ministry of EconomicMinistry Development of Economic Development 2014) in partnership2014) with in EY partnership. with EY. of the Russian Federationof the Russian. Federation.
112 VALUE OF FUNDAMENTALS www.rusventure.ru/en RVC ANNUAL REPORT 2015 113 RVC IN 2015 IN FIGURES OPENING ADDRESS BY THE RUSSIAN VENTURE PRIORITIES OF RVC'S CREATION OF THE NTI INVESTMENT ACTIVITY ACTIVITIES FOR THE EXECUTION OF INSTRUCTIONS FINANCIAL RESULTS CORPORATE SOCIAL RESPONSIBILITY APPENDIXES GENERAL DIRECTOR CAPITAL MARKET ACTIVITY FOR 2015-2016 PROJECT OFFICE DEVELOPMENT OF AN OF THE GOVERNMENT FOR 2015 GOVERNANCE AND SUSTAINABLE INNOVATION ECOSYSTEM REGARDING THE DEVELOPMENT DEVELOPMENT OF INNOVATION
OVERVIEWS AND RESEARCH OF VENTURE REVIEWS AND RESEARCH OF THE CAPITAL INDUSTRIES IN FOREIGN COUNTRIES RUSSIAN INNOVATION ECOSYSTEM
FOREIGN PRACTICES FOR STIMULATING THE DEMAND FOR INNOVATION IN GOVERNMENT TRANSACTIONS AND TRANSACTIONS IN STRATEGY FOR THE DEVELOPMENT OF THE RUSSIAN VENTURE CAPITAL INDUSTRY GOVERNMENT-BACKED COMPANIES
Material prepared by EY Company Material prepared by Synapse Msc LLC based on eight countries The Strategy project presents an analysis of the position of the Russian Federation in the global venture capital market, and also its The overview presents an analysis of practices in implementing strategies for innovation developments aimed at the demand from key challenges and opportunities. The main directions for stimulating strategic development in the sector are presented (improving both government and end consumers of innovative solutions and products (DDI-strategy). The main details of the practices that lead the institutional environment, the development of the system of financial and non-financial instruments, stimulating the export of to orders and purchases of innovative solutions and products are outlined. The report reviews the opportunities and their application Russian innovation products, and capital flows). Development scenarios and the main stages for implementing the Strategy are in developing mechanisms to stimulate demand for innovation in Russian government-backed companies. described. The project is tightly linked to the updated Strategy on Innovative Development of the Russian Federation through 2020 and is the result of the work of leading experts of the venture capital market (the representatives of venture funds, fast growing technology http://www.rusventure.ru/ru/programm/analytics/docs/201504_RVC_practics_Cover_Interactive.pdf companies, scientific educational institutions, and industry associations) and expert advice is created with the aim of implementing the project. The document is a recommendation and is intended for discussion by stakeholders of the venture capital ecosystem. ISRAELI ICT INDUSTRY REVIEW http://www.rusventure.ru/ru/programm/analytics/docs/RVC_vc_strat_draft.pdf Material prepared by the Israel Advanced Technology Industries RUSSIA: HEADING FOR INNOVATION, EDITION III The review presents an analysis of events in 2014-2015 and perspectives in Israel’s IT and telecommunications sectors. It lays out an overview of technology companies that hold leading positions and serve global markets. An analysis has been carried out from Material prepared by the company Frost & Sullivan investment trends and the dynamics of mergers and acquisitions that impact on the development of the high-tech sector in Israel. The annual expert analytical report “Russia: Heading for Innovation” is one of a series of reports that aims to conduct regular, http://www.rusventure.ru/ru/programm/analytics/docs/IATI%20Israeli%20ICT%20Industry%20Review%202015.pdf independent expert assessments of the implementation of the Strategy for Innovation Development of the Russian Federation until 2020. The reports include the detection of new emerging infrastructural, market and technological challenges, the promotion of ISRAEL’S LIFE SCIENCES INDUSTRY: IATI 2015 REPORT best practices, the identification of barriers and restrictions that prevent the achievement of the Strategy aims, and ensures links between market participants, government structures and development institutes. A unique element of the third edition is the Material prepared by the Israel Advanced Technology Industries thematic appendix that researches the innovation potential of the Russian biotechnology sector based on the analysis of innovation development at 13 Russian companies. The report presents an overview of the current situation in Israel’s biomedical sector. It analyses trends and the components of its success, including academic research, government support (incubator and accelerator programs), mergers and acquisitions, and http://www.rusventure.ru/ru/programm/analytics/docs/2015_Public_report_Strategy_Innovative_Development_ENG_web.pdf investments. Dynamics and structures of financing for various clusters in sectors of high technology and biomedicine are reviewed, as well as the main trends in IT developments in healthcare and digital medical equipment. NATIONAL REPORT ON INNOVATION IN RUSSIA
http://www.rusventure.ru/ru/programm/analytics/docs/88301.2.Life_Sciences_Industry_2015.pdf Material prepared by a group of authors under the leadership of E.B. Kuznetsov, executing the order of the Prime Minister of the Russian Federation on the outcomes of the meeting with members of the Expert Council of the Government of the Russian Federation and representatives of the expert community on the issue of innovation development on July 25, 2014
The document sets out a new view on the condition of the innovation ecosystem in Russia. The report is neither a statement about the execution of the Strategy for Innovation Development of the Russian Federation through 2020 nor an appendix to it. It provides a high-quality assessment of the current state of the Russian innovation ecosystem and the effectiveness of the changes carried out in recent years, and also identifies key directions for correcting the federal innovation policy. The review is based on an analysis of innovation as a main driver of long-term economic growth, pyramids of priority directions in innovation policy, reviewing the channeling of the innovation process as an instrument for assessing results and monitoring of innovation and the innovation system, a dashboard of innovation policy, and functional models as an instrument for optimizing the organizational structure and function of participants in the innovation ecosystem.
http://www.rusventure.ru/ru/programm/analytics/docs/NROI_RVC.pdf
114 VALUE OF FUNDAMENTALS www.rusventure.ru/en RVC ANNUAL REPORT 2015 115 RVC IN 2015 IN FIGURES OPENING ADDRESS BY THE RUSSIAN VENTURE PRIORITIES OF RVC'S CREATION OF THE NTI INVESTMENT ACTIVITY ACTIVITIES FOR THE EXECUTION OF INSTRUCTIONS FINANCIAL RESULTS CORPORATE SOCIAL RESPONSIBILITY APPENDIXES GENERAL DIRECTOR CAPITAL MARKET ACTIVITY FOR 2015-2016 PROJECT OFFICE DEVELOPMENT OF AN OF THE GOVERNMENT FOR 2015 GOVERNANCE AND SUSTAINABLE INNOVATION ECOSYSTEM REGARDING THE DEVELOPMENT DEVELOPMENT OF INNOVATION
MONEYTREE: VENTURE CAPITAL NAVIGATOR FROM 2014 MAKER MOVEMENT AS A SOCIO-ECONOMIC PHENOMENON
The report was prepared by the company PriceWaterhouseCoopers with TheMoneyTree Report methodology, based on information Material prepared by the Centre for Public Management Research of the European University at Saint Petersburg from the Venture Database and RusBase Internet edition The research presents an analysis of the creative communities of Perm and Saint Petersburg which focus on the development of The report presents an analysis of the main trends in the development of the Russian venture capital ecosystem in 2014. It offers an high-tech solutions and technologies. The mechanisms of interactions within the community and work practices are reviewed, overview of investment activities in information and industrial sectors, and in the sphere of biotechnology in the Russian Federation. It and opportunities for moving “maker” creativity from the realm of hobby to a professional activity is identified, as are methods for reveals information about grants given to companies and transactions for investor exits. The research resulted in the identification of supporting the “maker” movement. sectors that are more sensitive to crises and the main forms of their support. http://www.rusventure.ru/ru/programm/analytics/docs/EU_Intel_RVC_pub_fin.pdf http://www.rusventure.ru/ru/programm/analytics/docs/MoneyTree%202015_Rus_180315.pdf
TECHNOLOGICAL CREATIVITY: HOBBY OR INDUSTRY? CHAMPION CANDIDATES: WHAT ARE THE MEDIUM-SIZED TECHNOLOGY COMPANIES IN RUSSIA RESEARCH INTO THE COMMUNITY OF INNOVATORS AND TECHNOLOGY ENTHUSIASTS AND HOW CAN THE GOVERNMENT HELP THEM? Material prepared by the company Deloitte Material prepared by the Institute of Innovation Management of the National Research University Higher School of Economics The research presents an overview of the development practices of the communities of innovators and technology enthusiasts in The research presents the key factors for the success of and barriers to the development of medium-sized technology companies. An the USA, Finland, China and Russia, including the support measures of business and government. The most pertinent problems analysis is carried out into their innovation activity, the specificities of organization and strategies for technological development, and that prevent development of such communities in Russia are reviewed and possible ways to solve them are proposed. Based on the also the characteristics of cooperation with the government. The report reviews forms and methods of support for medium-sized analysis of global practices, the report speculates on development trends in technical enthusiast communities. fast growing technology companies abroad, and an assessment is provided of government support measures of such companies in Russia, and the perspectives for stimulating them. The research is based on the results of surveys and interviews with heads of http://www.rusventure.ru/ru/programm/analytics/docs/%D0%94%D0%B5%D0%BB%D0%BE%D0%B9%D1%82.pdf companies, including participants of the TechUp rating, representatives of development institutes, and government bodies.
http://www.rusventure.ru/ru/programm/analytics/docs/doclad_techup.pdf “MAKER” COMMUNITIES OF SCHOOLCHILDREN IN RUSSIA. INFRASTRUCTURE AND PARTICIPANTS, FORMATS AND THEMES
Material prepared by Edutainme PROGRAM FOR INNOVATIVE DEVELOPMENT OF GOVERNMENT-BACKED COMPANIES: INTERIM RESULTS AND PRIORITIES The research presents the main points of growth and barriers to development of a group of schoolchildren engaged in inventive and Material prepared by the National Research University Higher School of Economics scientific technological initiatives. The main “maker” communities and systematized auxiliary infrastructure are described (circles, children’s technoparks, competitions, themed online resources with various target groups). The report identifies the significant and The report presents the results of the implementation of the Program for Innovation Development (PID) of government-backed potential themed areas for development of technical creativity. There is a review of types of schoolchild inventiveness, and the parent companies, and an analysis of best practices in managing innovation activities in Russian companies and leading foreign or teacher as mentor, with description of their aims, values and motivations. Models of circles and children’s hobby communities are corporations. Assessments are given on the execution of the PID in relation to the formation of innovation management systems, presented, and also criteria for assessment. research financing, innovative developments and projects, and interaction with the external surroundings. The priorities for updating the Program for Innovation Development are reviewed. http://www.rusventure.ru/ru/programm/analytics/docs/Edutainme-DIY.pdf
http://www.rusventure.ru/ru/programm/analytics/docs/201508_PIR.pdf
116 VALUE OF FUNDAMENTALS www.rusventure.ru/en RVC ANNUAL REPORT 2015 117 RVC IN 2015 IN FIGURES OPENING ADDRESS BY THE RUSSIAN VENTURE PRIORITIES OF RVC'S CREATION OF THE NTI INVESTMENT ACTIVITY ACTIVITIES FOR THE EXECUTION OF INSTRUCTIONS FINANCIAL RESULTS CORPORATE SOCIAL RESPONSIBILITY APPENDIXES GENERAL DIRECTOR CAPITAL MARKET ACTIVITY FOR 2015-2016 PROJECT OFFICE DEVELOPMENT OF AN OF THE GOVERNMENT FOR 2015 GOVERNANCE AND SUSTAINABLE INNOVATION ECOSYSTEM REGARDING THE DEVELOPMENT DEVELOPMENT OF INNOVATION
COMMERCIALIZATION OF EARLY STAGE TECHNOLOGIES. MARKET OVERVIEW. DIRECT AND VENTURE INVESTMENTS. 9 MONTHS OF 2015 RESEARCH OF GLOBAL PRACTICES: UNIVERSITIES, CORPORATOINS, GOVERNMENT Material prepared by the Russian Venture Capital Association (RVCA) Material prepared by Mawsonia Ltd company based on surveys of 114 corporations and 50 groups of representatives from 350 universities and social research work The review presents information on the results of work by Russian and foreign institutional and non-institutional investors (business- angels and crowd-funding services). Transactions of the “technological” market are reviewed in which the subjects were “non- The research was dedicated to the global situation of the corporate venture industry, and the role of corporate venture funds in traditional” institutional investors of the direct and venture investment market (industry and investment companies, investment forming new markets. The research included an analysis of advanced experiences of interaction by corporations, universities, and banks, individual development institutes). The review was prepared on the basis of methodology developed in 2014 and added to in scientific research laboratories in investing in student startups and commercializing their developments. Varieties of government 2015, which ensures the comparability of the results of the Russian direct and venture capital market. The results take into account early-stage venture capital support are described (increasing demand and offers, forming a closed economy). A report was done more than 300 funds that are included in the Expert Database of the Russian venture capital market (created by RVCA with RVC of the state of the Russian sector for early stage venture financing in 2015, with review of methods to strengthen cooperative support). relationships between universities and industrial enterprises. http://www.rusventure.ru/ru/programm/analytics/docs/201512_%D0%BCarket_review_venture_capital_investments.pdf http://www.rusventure.ru/ru/programm/analytics/docs/ESR_RVC_2015_RU.pdf
THE GLOBAL STARTUP ECOSYSTEM RANKING 2015 DEVELOPMENT OF THE INNOVATION ECOSYSTEM OF UNIVERSITIES AND SCIENCE CENTERS Material prepared by COMPASS company on the basis of 200 surveyed entrepreneurs from 25 countries, participants of 11,000 Material prepared by Ingria Business Incubator startups and information from partners in 10 countries
The report was prepared within the frames of implementation of the project to develop the innovation ecosystem of Russian The report reviews in detail the main criteria for the updated global index for startup ecosystems: effectiveness, amount of financing, universities and science centers. It presents an analysis of international experience of identifying and overcoming barriers to number of talented specialists, size of startup market, and startup experience of participants. A detailed assessment of 20 startup technology transfer. There is research and detailed description of barriers to technology transfer in Russia. The innovation ecosystem ecosystems is presented, as well as the launch of startups onto the market, and the level of accessibility of products/services for of universities and science centers are reviewed as a complex of elements and connections that are necessary for successful consumers in international markets. commercialization of innovation. A model is offered of specialists’ activities for managing innovation (in universities or science centers), including with aims of commercializing innovation and end results of the work: commercial transactions, linked to the use of http://www.rusventure.ru/ru/programm/analytics/docs/The_Global_Startup_Ecosystem_Report_2015_v1.2.pdf results of intellectual activity, in the form of ordered scientific research and experimental constructive work or purchasing of licenses.
http://www.rusventure.ru/ru/programm/analytics/docs/Innovation_ecosystem_analytical_report.pdf
118 VALUE OF FUNDAMENTALS www.rusventure.ru/en RVC ANNUAL REPORT 2015 119 RVC IN 2015 IN FIGURES OPENING ADDRESS BY THE RUSSIAN VENTURE PRIORITIES OF RVC'S CREATION OF THE NTI INVESTMENT ACTIVITY ACTIVITIES FOR THE EXECUTION OF INSTRUCTIONS FINANCIAL RESULTS CORPORATE SOCIAL RESPONSIBILITY APPENDIXES GENERAL DIRECTOR CAPITAL MARKET ACTIVITY FOR 2015-2016 PROJECT OFFICE DEVELOPMENT OF AN OF THE GOVERNMENT FOR 2015 GOVERNANCE AND SUSTAINABLE INNOVATION ECOSYSTEM REGARDING THE DEVELOPMENT DEVELOPMENT OF INNOVATION
INDUSTRY RESEARCH
RADIATION TECHNOLOGIES: VIEW FROM RUSSIA RESEARCH INTO PERSPECTIVE EXPORT MARKETS FOR IT SERVICES, SOFTWARE, AND INTEGRATED SOLUTIONS OF RUSSIAN PRODUCERS Material prepared by Radtech Association Material prepared by RUSSOFT NP The overview describes the key areas in the world for applying industrial accelerators (irradiation of food products, inspection equipment complexes, nondestructive controls, and modification of materials), with an indication of the main problems and their The research presents a concept of IT markets of the future that determine the problems of existing informational structures innovative solution. Information is presented about products and services of 12 Russian companies that produce this equipment. and main trends in IT developments in the world according to the directions Smart life, Smart mobility, Smart city, Smart manufacturing, and Robotic Technology. The most important opportunities and risks are reviewed for Russia’s development in http://www.rusventure.ru/ru/programm/analytics/docs/201508_Radiation_technologies.pdf the spheres of robotic technology and security. The characteristics are outlined for perspective markets for development of the national robotic technology sector.
ANALYSIS OF THE CONDITION AND DYNAMICS OF THE WORLD NEUROTECHNOLOGY MARKET http://www.rusventure.ru/ru/programm/analytics/docs/201507_Promising_export_markets_for_information_technology.pdf
Material prepared by a group of authors that include representatives of the Russian group NeuroNet, the foresight group Constructors of Practice Communities, and other network profile communities SCENARIOS OF INNOVATION DEVELOPMENT AND GLOBALIZATION OF THE RUSSIAN IT INDUSTRY
This is the first systematic research of its kind into the condition of neurocommunications and perspectives for their development. Material prepared by EY company The report describes contemporary trends in neurotechnologies that led to the emergence of NeuroNet. In the work there is a forecast of impacts of the emergence of communications industries that are founded on the use of a biological and neurological The report presents the three most likely scenarios for globalization of the Russian IT industry through 2025. The report reviews person in related markets (from medicine and entertainment, to education and science). Based on the assessments of large impact possible changes, barriers and measures that need to be taken by market participants and the government for optimal innovation of neurotechnologies on global markets, the authors conclude that business needs to immediately consider the factor of NeuroNet’s development and globalization of the Russian IT industry. The scenarios are developed based on the generalized opinion of Russian emergence in the formation of a strategy. With the appearance of a new global market, NeuroNet both carries risks and opens up a and foreign representatives: companies from various sectors of the IT market, the venture capital industry, development institutes, unique opportunity to compete for key niches. and government bodies.
http://www.rusventure.ru/ru/programm/analytics/docs/201503_world_nanotechnology_market.pdf http://www.rusventure.ru/ru/programm/analytics/docs/scenarii_innov_razv.pdf
OVERVIEW AND ASSESSMENT OF PERSPECTIVE DEVELOPMENT OF GLOBAL AND RUSSIAN IT MARKETS
Material prepared by IDC company
The overview presents information about global and Russian information technology (IT) markets, including factors and trends in its development in 2014-2018. Covering the main provisions of the government policy of the Russian Federation in the sphere of IT, a rating is proposed for the industry’s economy in terms of amount of expenses on IT, and characteristics outlined for main players of the Russian market in categories: distribution, “Third Platform”, production of IT equipment and consumer electronics, development of package and custom software, and provision of IT services. Important and potential issuers of the market for innovation and investment are described, as is the IPOboard electronic information and trade system of the Moscow Stock Exchange.
http://www.rusventure.ru/ru/programm/analytics/docs/obzor_it.pdf
120 VALUE OF FUNDAMENTALS www.rusventure.ru/en RVC ANNUAL REPORT 2015 121 RVC IN 2015 IN FIGURES OPENING ADDRESS BY THE RUSSIAN VENTURE PRIORITIES OF RVC'S CREATION OF THE NTI INVESTMENT ACTIVITY ACTIVITIES FOR THE EXECUTION OF INSTRUCTIONS FINANCIAL RESULTS CORPORATE SOCIAL RESPONSIBILITY APPENDIXES GENERAL DIRECTOR CAPITAL MARKET ACTIVITY FOR 2015-2016 PROJECT OFFICE DEVELOPMENT OF AN OF THE GOVERNMENT FOR 2015 GOVERNANCE AND SUSTAINABLE INNOVATION ECOSYSTEM REGARDING THE DEVELOPMENT DEVELOPMENT OF INNOVATION
METHODOLOGICAL MATERIALS
CONCEPT FOR CREATING AND FUNCTIONING OF A PATENT FUND MECHANISMS FOR STIMULUS (TAXATION OR OTHER ASPECTS) IN DIRECT OR VENTURE INVESTMENT
Material prepared by International Institute for Industry Property LLC Material prepared by Liniya Prava Law Firm
The concept is based on an analysis of Russian and foreign experience of creating and running patent funds and funds for supporting The research reviews various mechanisms for stimulating investment activity. It presents an analysis of foreign and Russian inventors. It presents functional and organizational legal models for working to ensure legal security and protection of the results of practices for stimulus, including civil-legal and taxation mechanisms. In addition, a comparative analysis is carried out into intellectual activity. The concept proposes various options for choosing the key aspects of the activities of patent funds: strategic goals mechanisms for stimulating economic partnership and investment partnership (including taxation conditions). Substantial attention and priorities of the fund, organizational structure and sources of forming its funds, opportunities to attract external specialists and is given to analysis of taxation as a component of the institutional environment of innovation activity. The research presents current experts to participate in the activities of the fund, and other issues. information about taxation benefits and barriers for subjects of innovation activity. It formulates recommendations for creating a favorable climate for innovation activity and improvement of taxation legislation. http://www.rusventure.ru/ru/programm/analytics/docs/201512_Concept_of_creation_and_functioning_of_the_patent_fund.pdf http://www.rusventure.ru/ru/programm/analytics/docs/201512_incentive_mechanisms_for_Venture_Capital.pdf
CONCEPT FOR FORMING AN EFFECTIVE INSTITUTIONAL ENVIRONMENT IN THE SPHERE OF INTELLECTUAL PROPERTY MODEL AGREEMENT FOR INVESTMENT PARTNERSHIP Material prepared by the Russian Academy for Intellectual Property Federal State Budget Educational Institution of Higher Education Material prepared by Liniya Prava Law Firm with participation of experts of the Russian venture capital and direct investment market The concept is based on the results of research into the condition and development of the institutional context of 16 countries, and also of Russian institutes for security, protection, transfer and commercialization of intellectual property. It describes the key The model agreement proposes new opportunities for the structuring of joining innovation activities of market participants, and principles for forming an effective institutional environment in the sphere of intellectual property, and reviews the priority objectives various methods for establishing relationships within the investment partnership, including the specificities of forming bodies for and paths to their solution within the frames of functioning institutes of intellectual property. management and distributing income. The young agreement project was prepared based on best foreign practices in innovation activities with the use of investment partnerships. The proposals of the young agreement can be used by the sides of a specific http://www.rusventure.ru/ru/programm/analytics/docs/201512_concept_of_institutional_environment.pdf investment partnership agreement at their discretion.
http://www.rusventure.ru/ru/programm/analytics/docs/%D0%9C%D0%BE%D0%B4%D0%B5%D0%BB%D1%8C METHOD FOR DEVELOPING PRACTICE FOR MANAGING RIGHTS TO THE RESULTS OF INTELLECTUAL ACTIVITY IN GOVERNMENT %D0%BD%D1%8B%D0%B9%20%D0%B4%D0%BE%D0%B3%D0%BE%D0%B2%D0%BE%D1%80.zip AND PRIVATE COMPANIES
Material prepared by the Russian Academy for Intellectual Property Federal State Budget Educational Institution of Higher Education
The method is based on an overview and analysis of best Russian and foreign practices for managing the rights to the results of intellectual activity. It reveals the problematic issues of this sphere in relation to government and private companies. The report offers: recommendations for developing practices to manage rights to the results of intellectual activity in government and private companies; methodology for expertise in innovative projects in part rights to the results of intellectual activity (including development of a system for monitoring projects); and methodology for calculating the effectiveness of the use of results of intellectual activity.
http://www.rusventure.ru/ru/programm/analytics/docs/metodika.pdf
122 VALUE OF FUNDAMENTALS www.rusventure.ru/en RVC ANNUAL REPORT 2015 123 RVC IN 2015 IN FIGURES OPENING ADDRESS BY THE RUSSIAN VENTURE PRIORITIES OF RVC'S CREATION OF THE NTI INVESTMENT ACTIVITY ACTIVITIES FOR THE EXECUTION OF INSTRUCTIONS FINANCIAL RESULTS CORPORATE SOCIAL RESPONSIBILITY APPENDIXES GENERAL DIRECTOR CAPITAL MARKET ACTIVITY FOR 2015-2016 PROJECT OFFICE DEVELOPMENT OF AN OF THE GOVERNMENT FOR 2015 GOVERNANCE AND SUSTAINABLE INNOVATION ECOSYSTEM REGARDING THE DEVELOPMENT DEVELOPMENT OF INNOVATION
CONTACTS
RVC OJSC RVC Civil Technologies, Ltd Leader CJSC ACP MC LLC 29 Serebryanicheskaya nab., 109028, Moscow, Russia, 5 Mal. Golovin per., 107045, Moscow, Russia (Leader Innovations Venture Fund) (ACP Seed Fund IPA) Silver City Business Center, floor 4 Tel.: +7 (495) 730-03-55 95-1 Varshavskoye sh., 117556, Moscow, Russia 1-77, 26 Ul. Leninskye Gory, 119992, Moscow, Russia Tel.: +7 (495) 777-01-04 Tel.: +7 (495) 280-05-60, +7 (495) 280-05-62, +7 (495) 988-74-40 Tel.: +7 (495) 930-80-59 www.rusventure.ru RVC Funds in Foreign Jurisdictions Fax: +7 (495) 280-05-61, +7 (495) 988-79-17 [email protected] [email protected] www.amacap.ru Company details: Russian Venture Asset Management Ltd www.leader-invest.ru INN1 7724570128 3rd Floor, 14 Hannover Str. London, W1S 1YH, UK ACP Seed Fund IPA KPP2 770901001 [email protected] S-Group Capital Management MC LLC (High-Tech Seed Fund IPA) OGRN3 1067746333742 (S-Group Ventures Venture Fund) 11 Ul. Planetnaya, 125167, Moscow, Russia Volga Venture Management Inc. 2 Ul. Klary Tsetkin, 127299, Moscow, Russia Tel.: +7 (495) 612-24-59 Address: 109028, Moscow, 18 Washington Str., Suite 141, Canton MA 02021, USA Tel.: +7 (495) 662-70-20 www.tonapventure.ru 29 Serebryanicheskaya nab. [email protected] Fax: +7 (495) 783-56-27 [email protected] Softline Internet Projects LLC settlement account: 40702810890470481501 Funds established in the form of Closed-End Funds www.uk-sgcm.ru (Softline Seed Fund IPA) correspondent account: 30101810400000000555 7-8 Derbenevskaya nab., 114115, Moscow, Russia BIC 044525555 Bioprocess Capital Partners MC LLC Management Company Innovative Solutions CJSC Tel.: +7 (495) 232-00-23 BANK: Promsvyazbank PJSC (Bioprocess Capital Ventures) (Innovative Solutions Venture Fund) www.ssf.vc 6 Stolovy per., 121061, Moscow, Russia 4-2 Rastorguevsky per., 127473, Moscow, Russia Subsidiary Tel.: +7 (495) 974-74-01 Tel.: +7 (495) 797-80-65 DI Group LLC Fax: +7 (495) 974-74-02 Fax: +7 (495) 797-80-66 (Venture Fund Accelerator IPA) RVC USA Inc. +7 (495) 974-74-01 (ext. 223) [email protected] 4a Poimenny per., 634009, Tomsk, Russia 18 Washington Str., Suite 141, Canton MA 02021, USA www.bcvf.ru www.innovative-solutions.ru Tel.: +7 (3822) 979-890 Tel.: +1 (857) 284-72-20 www.di-group.info [email protected] VTB Capital Asset Management CJSC Funds established in the form www.rvc-usa.com (VTB – Venture Fund) of Investment Partnership Agreement (IPA) KSI Ventures LLC 10 Presnenskaya nab., 123317, Moscow, Russia (Life Sciences Seed Fund IPA) RVC Subsidiary Funds Tel.: +7 (495) 725-55-40 RusBio Ventures LLC (RusBio Ventures IPA) 5 Ul. Pervomaiskaya, Dolgoprudny, Moscow Region, Fax: +7 (495) 725-55-38 10 Ul. Testovskaya, Northern Tower, Moscow-City, 141700, Russia RVC Seed Fund, Ltd [email protected] 123317, Moscow, Russia Tel.: +7 (495) 408-42-00 5 Mal. Golovin per., 107045, Moscow, Russia www.vtbcapital-am.ru Tel.: +7 (495) 782-23-42 [email protected] Tel.: +7 (495) 730-03-55 [email protected] www.ksiventures.ru [email protected] April Capital Mc JSC (New Technologies) www.rbvcapital.com www.rvcseed.ru 12 Presnenskaya nab., 123317, Moscow, Russia North Energy Venture LLC Tel.: +7 (495) 668-55-66 FINEMATIKA LLC (North Energy Fund I Seed IPA) RVC BioFund LLC Fax: +7 (495) 645-87-23 (Finematica Air-cosmic Fund IPA) 3-18 Stolyarny per. 123022, Moscow, Russia room 412, 43 Ul. Lesnaya, 127055, Moscow, Russia [email protected] 26 Ul. Pravdy, 125040, Moscow, Russia Tel.: +7 (499) 700-08-07 Tel.: +7 (495) 789-69-47 www.april-capital.ru/ Tel.: +7 (495) 542-58-58 [email protected] [email protected] [email protected] www.northenergyventures.com/ru Maxwell Asset Management LLC RVC InfraFund LLC (Maxwell Biotech Venture Fund) Da Vinci Capital MP LLC Phystech Ventures LLC 24 Krasnaya Presnya, 123022, Moscow, Russia 1-12/19 Ul. Verkhnaya Radishchevskaya, 109240, Moscow, Russia (The structure of parallel funds: Da Vinci Pre-IPO Fund IP (Phystech Ventures II IPA) Tel.: +7 (495) 729-64-59 Tel.: +7 (495) 726-52-53 and DA VINCI PRIVATE EQUITY FUND II L.P.) 11-6 Tsvetnoy bul., 127051, Moscow, Russia [email protected] [email protected] Da Vinci Pre-IPO Fund IP [email protected] www.rvcinfra.com www.ammaxwell.ru and DA VINCI PRIVATE EQUITY FUND II L.P. www.phystechventures.com 8-1 Presnenskaya nab., City of Capitals Tower, Northern block,
1 Tax identification number 123317, Moscow, Russia Tel.: +7 (495) 775-62-22 2 Code of reason for tax registration [email protected] 3 Primary state registration number
124 VALUE OF FUNDAMENTALS www.rusventure.ru/en RVC ANNUAL REPORT 2015 125 RVC IN 2015 IN FIGURES OPENING ADDRESS BY THE RUSSIAN VENTURE PRIORITIES OF RVC'S CREATION OF THE NTI INVESTMENT ACTIVITY ACTIVITIES FOR THE EXECUTION OF INSTRUCTIONS FINANCIAL RESULTS CORPORATE SOCIAL RESPONSIBILITY APPENDIXES GENERAL DIRECTOR CAPITAL MARKET ACTIVITY FOR 2015-2016 PROJECT OFFICE DEVELOPMENT OF AN OF THE GOVERNMENT FOR 2015 GOVERNANCE AND SUSTAINABLE INNOVATION ECOSYSTEM REGARDING THE DEVELOPMENT DEVELOPMENT OF INNOVATION
GLOSSARY
BUSINESS-ANGEL IPO (INITIAL PUBLIC OFFERING) A private investor who provides financial and occasionally consultancy Initial sale by public auction or company’s share allotment on the STARTUP DEVELOPMENT STAGES support for early stage innovation companies in exchange for an equity capital market. IPO of the portfolio company’s share is one of the Pre-seed stage – technological entrepreneur has an idea for which share. methods of exit for a venture investment fund. development at this stage does not require heavy expenses and is mainly funded by the initiator of the project with assistance from 3F BUSINESS ACCELERATOR LP (LIMITED PARTNER) (family, friends, fools) and grants. A model of support for early stage innovation projects that provides Investor-partner with limited liability in private equity fund or venture intensive development of a project within the shortest possible period fund. Seed stage – the company is in the process of formation and only has of time. Investment, infrastructure, expertise and information support an idea or a project. ensure that the project enters the market MANAGING PARTNER A partner under an investment partnership agreement that manages Startup stage – the company has a pre-production prototype and is BUSINESS INCUBATOR the partnership funds solely or jointly with other managing partners. attempting to initiate the production process and introduce the product A company that assists the development of early stage innovation to the market. projects by providing them with office space, technical support, NABA juridical, financial and other consultations on favorable terms. National Association of Business-Angels. Growth stage – the company is producing and selling the ready-made product, although it is not yet generating a stable income. CEF PARALLEL FUNDS Closed-end fund whose assets are managed by professional Funds under direction of one the managing teams and that inject Expansion stage – the company has achieved a position in the market, management companies. capital in the same assets on a pro rata basis (according to the is building its sales and becoming profitable proportion on equivalent rights). CEF FOR HR(V)I Exit stage – establishment of a listed company, sale of investor’s Closed-end fund for high risk (venture) investment. PORTFOLIO COMPANY share to another strategic investor, initial public offering (IPO) or A company that is the subject of investment. management buyout. CVF Corporate Venture Capital Fund. PROJECT COMPANY VENTURE CAPITAL INVESTMENT A company relating to which an investment decision has been made Investment in particularly high risk projects. COMPANY, SUPPORTED BY RVC (a decision by the Investment Committee) and a share of which is A company that received marketing, consulting and expert support owned by the fund at the time of reporting. within the framework of events arranged and/or supported by RVC, but that did not received financing from RVC funds. RVCA Russian Venture Capital Association IDP Innovation Development Program. RMS Risk management system. INVESTMENT PARTNERSHIP AGREEMENT (IPA) An association of two or more entities (partners) that undertake to RSPC join their contributions and carry out join investment activity in order Regional sessions of practical consulting. to derive a profit without forming a legal entity. RVC formed two new microfunds at pre-seed and seed stages through investment STARTUP partnership agreements: Softline Seed Fund (SSF) and High A recently founded company that in the development stage or looking Technologies Seed Fund. into high-potential markets. Investment in startups implies particularly high risks.
126 VALUE OF FUNDAMENTALS www.rusventure.ru/en RVC ANNUAL REPORT 2015 127 RVC IN 2015 IN FIGURES OPENING ADDRESS BY THE RUSSIAN VENTURE PRIORITIES OF RVC'S CREATION OF THE NTI INVESTMENT ACTIVITY ACTIVITIES FOR THE EXECUTION OF INSTRUCTIONS FINANCIAL RESULTS CORPORATE SOCIAL RESPONSIBILITY APPENDIXES GENERAL DIRECTOR CAPITAL MARKET ACTIVITY FOR 2015-2016 PROJECT OFFICE DEVELOPMENT OF AN OF THE GOVERNMENT FOR 2015 GOVERNANCE AND SUSTAINABLE INNOVATION ECOSYSTEM REGARDING THE DEVELOPMENT DEVELOPMENT OF INNOVATION
FEEDBACK QUESTIONNAIRE 2. If your company was incorporated somewhere other than the Russian Federation, please specify the country of incorporation. Your response Dear reader! Country of incorporation You have read the public Annual Report of Russian Venture Company OJSC, which is addressed to a community of stakeholders. Your opinion is very important to us. We would be grateful is you could take a moment to contribute to the improvement of the quality of our reports by answering our questions below. 3. Please specify the format in which you read the Annual Report.
1. Please specify your professional sphere (select one). Your response
Your response Printed Russian version
RVC portfolio companies Printed English version
Online Russian version on RVC website Federal executive authorities Online English version on RVC website Regional/municipal executive authorities
State development institutes 4. Plesase assess the quality of the Annual Report against the following criteria. Major companies and industrial enterprises Grade from 1 (poor) to 5 (excellent) Innovation companies/startups 1 2 3 4 5 Business-angels Structure and convenience of locating information Venture funds Simplicity, clarity and unambiguity
Strategic investors Targeted data presentation
Managing companies of venture capital funds and investment portfolios Design and layout
Higher educational institutions and scientific centers 5. Please assess the completeness of information that was provided on the following topics. Innovation infrastructure for innovation support (technology parks, business incubators, accelerators, etc.) Grade from 1 (poor) to 5 (excellent)
Technology platforms, innovation area clusters 1 2 3 4 5
Role and influence of RVC in the Russian venture capital market Mass media RVC strategic priorities Consulting companies Investment activity of RVC, funds and portfolio companies RVC employees Innovation ecosystem development programs Subsidiary funds and RVC-backed funds Overview of the Russian venture capital market Other (please specify) RVC corporate governance
RVC partners
The questionnaire can be filled in on the RVC website at http://www.rusventure.ru/en/programs/analytics/docs/Report_RVC2015.php or sent by email to [email protected]. 128 VALUE OF FUNDAMENTALS www.rusventure.ru/en RVC ANNUAL REPORT 2015 129 DISCLAIMER
The present Annual Report (hereiafter referred to as the “Annual Report”) of Russian Venture Company OJSC (the “Company”) reflects the company’s performance in 2015 and was prepared using information available to the company at the time of its preparation.
The Annual Report contains information about the company’s activity in 2015, forecasts and statements regarding the intentions, opinions and current expectations of the company, and concerning its performance, financial standing, liquidity, growth prospects, strategies, and development of the industry in which the company operates. Such forward-looking statements are characterized by risks and uncertainty because they depend on circumstances that may change in the future.
The company makes no express or implied representations or warranties, and disclaims any liability in case of any losses that may be incurred by any individual or legal entity as a result of using the forward-looking statements of this Annual Report, whether directly or indirectly. Such persons or entities should not fully rely on the forward-looking statements contained in this document because these are the only possible scenarios.
Except as provided for in the laws of the Russian Federation, the сompany does not undertake any obligation to review or confirm the expectations or estimates, or publish updates or changes to the forward-looking statements contained in this Annual Report, whether due to subsequent events or new information becoming available.
130 VALUE OF FUNDAMENTALS