GVA plans $1 bln fund in Russia
MOSCOW. Feb 9 (Interfax) - U.S. Global Venture Alliance (GVA) plans to set up a $1 billion fund for funds in Russia, GVA President Magomed Musaev said at the Innovative Russia - Responses to Global Challenges conference in Moscow.
"GVA is holding talks with various Russian investors and investment funds about setting up such a fund," the general partner and co-founder of venture fund Helix Ventures, Yevgeny Zaitsev, who is taking part in this project, told Interfax.
The Russian investment market is in its early stages and has various problems, he said. For example, it lacks risk capital, professional managers and so on. In addition, the government has a strong presence on the market. Funds and investment companies with government participation are saddled with strict limitations and do not have the necessary degree of freedom, which, Zaitsev thinks, does not have the best impact on the industry.
On the other hand, Russia has money and investors ready to invest, he said. Most of them are not familiar with the innovative sector (especially the information and communication technology segment) and, despite the desire to diversify business or investments, they are worried about investing in an area they are not familiar with. The vast majority of leading Silicon Valley investment funds are not working in Russia and Russian investors do not have access to them, Zaitsev said.
The GVA Fund of funds could resolve some of the problems facing the venture industry, he said. It could be a point of entry for Silicon Valley investment funds to the Russian venture market and Russian investors could use it to obtain access to these funds. By attracting professional Silicon Valley venture capitalists, Russia can obtain their expertise and experience in managing venture funds and projects.
GVA plans to repeat the Chinese version in Russia. "In China a Fund of funds was created through this scheme," Zaitsev said. "After two years there were already hundreds of professional Chinese investment funds," he said.
GVA was established to build innovative systems in countries with emerging economies - passing on experience accumulated in the United States about how to grow innovative systems and introduce them to international markets through Silicon Valley. The alliance brings together U.S. blue chip venture investors, different financial structures, technology centers and business analysts. GVA offers businesses financial services and business support services - from zero to IPO. The alliance began operating in Russia at the end of 2011 when it undertook the organization of introducing U.S. business incubator Plug and Play Tech Center to the Russian market.