On 17 September 2007, JSC VTB Bank launched the first venture fund within the programme sponsored by the Russian Venture Company (RVC). The Fund was incorporated in the Russian Federation and oriented at financing Russian innovative companies. Under the RVC policy, VTB Asset Management, a winner in the competition held by RVC this April and May, will manage VTB Venture Fund's investment worth RUR 3.61 billion. The European Bank for Reconstruction and Development is expected to purchase 20% of the Fund's assets.
The Fund intends to compose its portfolio of 20-30 companies, potentially attractive in terms of commercialization of innovative intellectual property developed by the Russian specialists. The Fund's portfolio is planned to be composed of direct venture investment in the fast-developing businesses engaged in the IT industry, industrial innovations, nano-and bio-technologies, and some other innovative segments. The investment made in one project will range from RUR 50 to RUR 400 million. Expected investment exit will be in 5 to 7 years. The Fund will be run by a team of three venture experts, namely, Sergei Romashov, Andrey Morozov and Andrey Zyuzin, who have gained in-depth experience in venture investment.
According to Andrey Kostin, VTB Chairman and CEO, "Launching our venture investment business is a strategic priority for VTB Group, since stronger innovative sector is a key driving force in the long-term development and diversification of the Russian economy, and increased global competitiveness of the country>.
The newly created venture funds are reflective of VTB readiness to foster development of innovative sector of the Russian economy. At present, three more venture funds, in aggregate worth more than RUR 1 billion, are being registered in the Financial Markets Federal Service, namely, in St. Petersburg, Nizhny Novgorod and Saratov.