The RVC's Investment strategy

In order to increase the transparency and efficiency of investment decisions, RVC updated its approach to investment activities in 2018. In July, the Board of Directors approved an updated investment strategy in line with the best market practices for funds of funds, and the line of proposed investment instruments was also expanded.

RVC’s product line currently includes classic venture funds; NTI funds; corporate, foreign and special-purpose funds; as well as two new types of funds: funds for young management teams and late-stage funds.

Funds for young management teams are aimed at professionals with successful experience in entrepreneurship, the practices of business angels, direct and venture investments and corporate innovations. Thanks to the commons-sense liberalization of the requirements for managers, the new tool will make it possible to increase the number of management teams active in the Russian venture capital market. RVC’s share in such funds is not to be more than 25% and not more than RUB  250 million.

Late-stage funds will focus on investing in companies at the B, C and pre-IPO stages. They will make it possible to develop a system of exits or follow-on rounds for funds at earlier stages, thus filling the existing gap in the investment cycle. RVC’s share in such funds will not exceed 20% and will not be more than RUB 1.5 billion.

RVC’s new strategy also involves improving the quality of asset management. to this end, new standards for working with funds and management companies are being introduced, and internal corporate procedures are being improved. According to the new strategy, the selection of management teams for new funds is carried out through a selection and open contests with the participation of independent experts and a scoring system. This mechanism makes it possible to stimulate market competition between management teams and to improve the quality of decisions. At the same time, management companies are required to invest in these funds – they should control at least 1% of the fund. to stimulate the flow of private capital into the innovation sector when creating new funds, another prerequisite is the availability of private investment in an amount of at least 50%, and of at least 30% for NTI funds, corporate funds and late-stage funds.

Two important events occurred in RVC’s investment activities in 2018. Our investment strategy was updated. We introduced new niche products to the market: funds for young managers and late-stage funds, and we systematized and the procedure for selecting management teams and made it more transparent. The year is ending with a presentation of the long-term market development strategy developed by RVC at the request of the Government. Its task is to radically improve the development performance of the national venture capital industry and to create new catalysts for growth.
Alexey Basov, RVC’s Deputy CEO and Investment Director
RVC is an anchor investor in the Da Vinci Pre-IPO Fund investment partnership, which aims to invest in growing technology companies in late and pre-IPO growth stages. The Fund has signed a co-investment agreement with an international fund under the management of Da Vinci Capital, forming a structure of parallel funds. By the end of 2018, the Fund’s Pre-IPO portfolio was fully formed, and the process of preparing and carrying out exits from transactions is currently under way. Over the past four years, this structure has shown its potential to find international investors for Russian companies, and we are pleased to continue cooperation with RVC in the new Da Vinci Pre-IPO Tech Fund, which is focused on investing in technology companies with the potential to enter international markets and capital markets. The Pre-IPO Tech Fund will invest jointly with Da Vinci Capital’s international funds, and we plan to finalize our co-investment agreement in May 2019. The Da Vinci Capital team sees RVC as a professional institutional investor in the Russian market with an opportunity for long-term investment in private companies, which is especially important given the complex macroeconomic agenda. We hope that together we will be able to help developing technology leaders grow and expand in both Russian and international markets.
Oleg Zhelezko, Managing Partner, Da Vinci Capital

Performance of RVC-backed funds

Subsidiary funds

RVC Seed Fund
Indicator 2013 2014 2015 2016 2017 2018
Number of portfolio companies in the fund 56 64 62 64 58 56
Actual amount of RVC equity in the fund (RUB mln) 1,980 1,980 1,980 1,980 1,980 1,980
Amount of invested funds (RUB mln) 790.00 902.36 1,045.95 1,233.48 1,170.46 1,168.58
Approved investments (RUB mln) 1,311.50 1,496.60 1,545.94 1,618.50 1,415.27 1,375.27
Number of exit transactions from companies invested in previously 5 10 12 13 13 15
RVC Infrastructure Investments Fund (RVC InfraFund)
Indicator 2013 2014 2015 2016 2017 2018
Number of portfolio companies in the fund 15 21 25 29 30 24
Actual amount of RVC equity in the fund (RUB mln) 1,099.00 1,099.00 1,099.00 1,099.00 1,099.00 2,599.00 Taking into account additional capitalisation of RUB 1.5 billion through NTI subsidies.
Amount of invested funds (RUB mln) 212.00 297.00 435.00 496.00 417.38 361.47
Approved investments (RUB mln) 675.00 987.00 1,185.40 969.00 874.28 683,10
Number of exit transactions from companies invested in previously 2 5 6 7 14
RVC Biopharmaceutical Investments Fund
Indicator 2013 2014 2015 2016 2017 2018
Number of portfolio companies in the fund 8 13 15 18 20 17
Actual amount of RVC equity in the fund (RUB mln) 770.00 770.00 770.00 770.00 770.00 770.00
Amount of invested funds (RUB mln) 112.79 314.86 494.99 610.25 644.54 638.99
Approved investments (RUB mln) 769.11 978.11 724.29 743.7 1,053.68 1,024.31
Number of exit transactions from companies invested in previously 1 4
Venture fund for investments in civilian technologies from the military-industrial complex (RVC Civil Technologies)
Indicator 2013 2014 2015 2016 2017 2018
Number of portfolio companies in the fund 3 4 7 7 5
Actual amount of RVC equity in the fund (RUB mln) 350 350 350 350 350 350
Amount of invested funds (RUB mln) 63.70 88.00 150.005 127.91 127.90
Approved investments (RUB mln) 30.00 215.80 234.68 217.18 189.18 138.90
Number of exit transactions from companies invested in previously 1 1 1 3

Funds in foreign jurisdictions

Russian Venture Capital I LP
Indicator 2013 2014 2015 2016 2017 2018
Number of portfolio companies in the fund 3 3 3 2 2 2
Actual amount of RVC equity in the fund (RUB mln) 38.35 38.70 45.69 60.795 60.795 60.795
Amount of invested funds (RUB mln) 38 38.35 45.35 60.361 60.361 60.361
Approved investments (RUB mln) 38 38.5 45.35 60.361 60.361 60.361
Number of exit transactions from companies invested in previously 1 1 1
RVC IVFRT LP
Indicator 2013 2014 2015 2016 2017 2018
Number of portfolio companies in the fund 4 4 4 4 4 4
Actual amount of RVC equity in the fund (RUB mln) 12.56 13.84 13.84 13.84 13.84 13.84
Amount of invested funds (RUB mln) 23.90 28.45 32.20 32.70 32.70 32.70
Approved investments (RUB mln) 35.00 35.00 35.00 35.00 35.00 35.00
Number of exit transactions from companies invested in previously
Bioprocess Capital Ventures CE VF
Year established 2007
Purpose of the fund
  • Healthcare and technologies for life and health/living systems
  • New materials and chemical compounds (fine chemistry
Management company Bioprocess Capital Partners LLC
RVC’s share 49.00%
Actual size of the fund as of 31 December 2018 (RUB mln) 3,000.000
Actual amount of invested funds as of 31 December 2018 (RUB mln) 3,000.000
Actual amount of RVC’s investment in the fund as of 31 December 2018 (RUB mln) 1,470.000
Number of project companies in the fund as of 31 December 2018 8
Approved investments as of 31 December 2018 (RUB mln) 3,223.14
Amount of funds invested as of 31 December 2018 (RUB mln) 3,218.01
VTB – Venture Capital Fund CE VF
Year established 2007
Purpose of the fund
  • New materials and chemical compounds
  • Information technology
  • Network technologies and services
  • Alternative energy
  • Industrial equipment
  • Agriculture, forestry and raw materials processing
Management company VTB Capital Asset Management JSC
RVC’s share 49.00%
Actual size of the fund as of 31 December 2018 (RUB mln) 3,061.000
Actual amount of invested funds as of 31 December 2018 (RUB mln) 3,061.000
Actual amount of RVC’s investment in the fund as of 31 December 2018 (RUB mln) 1,499.890
Number of project companies in the fund as of 31 December 2018 5
Approved investments as of 31 December 2018 (RUB mln) 1,225.31
Amount of funds invested as of 31 December 2018 (RUB mln) 1,215.91
Maxwell Biotech CE VF
Year established 2008
Purpose of the fund Healthcare and technologies for life and health/living systems
Management company Maxwell Asset Management LLC
RVC’s share 49.00%
Actual size of the fund as of 31 December 2018 (RUB mln) 1,224.400
Actual amount of invested funds as of 31 December 2018 (RUB mln) 1,224.400
Actual amount of RVC’s investment in the fund as of 31 December 2018 (RUB mln) 599.956
Number of project companies in the fund as of 31 December 2018 5
Approved investments as of 31 December 2018 (RUB mln) 270.87
Amount of funds invested as of 31 December 2018 (RUB mln) 262.91
Innovation Leader CE VF
Year established 2008
Purpose of the fund
  • Energy industry and energy conservation
  • Alternative energy
  • New materials and chemical compounds
  • Network technologies and services
Management company Leader CJSC
RVC’s share 49.00%
Actual size of the fund as of 31 December 2018 (RUB mln) 1,885.80
Actual amount of invested funds as of 31 December 2018 (RUB mln) 1,725.507
Actual amount of RVC’s investment in the fund as of 31 December 2018 (RUB mln) 845.50
Number of project companies in the fund as of 31 December 2018 11
Approved investments as of 31 December 2018 (RUB mln) 1,806.85
Amount of funds invested as of 31 December 2018 (RUB mln) 1,233.78
S-Group Ventures CE VF
Year established 2008
Purpose of the fund
  • Information technology
  • Alternative energy
  • Energy industry and energy efficiency
  • New materials and chemical compounds
  • Healthcare and technologies for life and health/living systems
  • Consumer market
Management company S-Group Capital Management LLC
RVC’s share 49.00%
Actual size of the fund as of 31 December 2018 (RUB mln) 1,620.000
Actual amount of invested funds as of 31 December 2018 (RUB mln) 1,620.000
Actual amount of RVC’s investment in the fund as of 31 December 2018 (RUB mln) 793.800
Number of project companies in the fund as of 31 December 2018 8
Approved investments as of 31 December 2018 (RUB mln) 1,477.17
Amount of funds invested as of 31 December 2018 (RUB mln) 1,475.45

Investment partnership funds

Fund name Year established Purpose of the fund Management company
Softline Seed Fund IPA 2013 Russian companies that specialize in solutions in the field of cloud technologies, mobile applications, data security systems, digital marketing with Russia as their primary sales market Softline Internet Projects LLC
High-Tech Seed Fund IPA 2013 Innovative companies in IT, biotechnology, new materials, energy efficiency TONAP-Venture LLC
RusBio Ventures IPA 2014 Companies in the biomedical industry, including in biomedicine and biomedical services, bioinformatics, biotechnology, medicine and healthcare, pharmaceuticals RusBio Ventures LLC
ACP Seed Fund IPA 2014 B2B software, hardware and software packages ACP LLC
Venture Fund Accelerator IPA 2014 Innovative companies in the area of Hardware 2.0: wearable technology, IoT, medical technology DI Group LLC
Life Sciences Seed Fund IPA 2015 Innovative companies in the field of pharmaceuticals, biotechnology, medical instrumentation, agrobiotechnologies KSI Ventures LLC
Russian-Belarusian Venture Investment Fund IPA 2016 Special-purpose companies that have a product/service based on innovative technology and that are carrying out the design, development and/or commercialization of the technology independently RVC InfraFund LLC and Belifond
Skolkovo Venture Fund – IT I IPA 2017 Innovative IT companies: quantum communications and computations, IoT, operating systems and applications, software and hardware for medicine and pharmacology, engineering software, neural networks and systems based on such software, electronics, robotics, IT security Skolkovo – Venture Investments LLC, Vzlyot LLC, IBS IT Services JSC
Skolkovo Venture Fund – Agrotechnological I IPA 2017 Innovative companies in the field of agricultural technologies, including digital and unmanned technologies for agribusiness, precision farming, alternative farms, bio-fertilizers and pesticides, innovative feed, storage and processing technologies Skolkovo – Venture Investments LLC
Skolkovo Venture Fund – Industrial I IPA 2017 Innovative companies in the following areas: engineering software; engineering; energy efficiency; additive and hybrid technologies; control, management and warning systems; technologies and equipment for industrial and medical diagnostics; sensor studies; IoT; clean technologies; software and hardware solutions for infrastructure protection; big data; unmanned systems; navigation; mechanical engineering Skolkovo – Venture Investments LLC
Tomsk State University Seed Fund IPA 2017 Any innovative companies carrying out activities in accordance with the list of priority areas and/or critical technologies of the Russian Federation National Research Tomsk State University Federal State Autonomous Educational Institution of Higher Education (TSU RI)
Terra Fund II IPA 2018 Special-purpose, late-stage companies in the field of traditional energy technologies, smart grids, industrial IoT, robotics, artificial intelligence, machine learning Phystech Ventures LLC
National Technology Initiative Venture Fund IPA 2018

Investments are made in companies:

  • in order to implement NTI action plans (road maps), including Aeronet, Autonet, Marinet, Neuronet, Healthnet, Foodnet, Energynet, Safenet, Finnet;
  • and/or if it is practicable under applicable law
  • developing cross-cutting technologies related to the following key scientific and technical areas of the NTI:
    • big data;
    • artificial Intelligence;
    • blockchain;
    • quantum technologies;
    • new and portable energy sources;
    • new production technologies;
    • sensors and robotics components;
    • wireless communication technologies;
    • technologies for managing the properties of bio-objects;
    • virtual- and augmented-reality technologies
KF Ventures LLC
Far East Fund for the Development and Implementation of High Technologies IPA 2018

Investments in growing Russian companies that are developing technologies, products and services that are of current interest or have a promising future:

  • implementing projects related to the transfer of technologies from abroad, including with a focus on import substitution;
  • implementing projects to create technology products and services;
  • implementing projects to expand and modernize the production of technological products and the provision of services in the Russian Federation, including those with export potential;
  • launching production of new types of high-value-added products;
  • localization of the production of high-tech equipment;
  • financing infrastructure projects
Far East High-Tech Fund LLC
Da Vinci Pre-IPO Tech Fund IPA 2018 Information technology, smart mobility, autonomous trucking systems, on-demand economy, financial technologies (fintech and blockchain), cross-industry B2B solutions based on IoT and big data technologies, products/technologies related to artificial intelligence, AR/VR, cybersecurity with global scalability Da Vinci Capital Management LLC