A press conference devoted to the presentation of Moscow seed fund took place on April 23, 2012. The total stock volume will comprise 300 M RUR, which will be used to finance, in particular, Internet startups, the fund executive director Alexei Kostrov said to the reporters in Moscow.
The press conference was held in the Digital October center within the XII Annual Congress of the European Association of Business Angels. The new initiative of the Department of Science, Industrial Policy and Entrepreneurship of Moscow is implemented with the support of OJSC RVC and aims to increase the number of investors involved into innovative projects at the earliest stages, and the startups that have received investments, said the RVC press release.
The main objective of the Fund's activity is provision of easy loans to projects that have received investments from private investors who have passed competitive selection. The fund will provide easy loans on a competitive basis and invest their own money in projects under the co-investment. At the same time, the limit for a single investor will reach 30 M RUR, for investment in one company – 8 M RUR, the minimum loan in one company will be 500000 RUR. Investors will make their own decisions about investing in a particular enterprise, taking into account that in the case of investment, the company receives a loan from the Fund with the postponement of repayment.
First and foremost we have created a tool designed to support business angels. It is professionals in this area of investment, whom we see as the first its users - says Alexei Kostrov. - Speaking about the projects we expect, they are to be focused on private, rather than budget money or grants. Exclusively market endeavors with short terms of capitalization.
The competition for the selection of private investors for joint investments in Moscow start-ups was announced on April 16, 2012. The competitive selection of investors will continue until May 31, 2012. The examination of applications involving outside experts will be held in June and the competitors will be allowed to make presentations at a meeting of the Fund supervisory board. The investors list will be approved and specific transactions preparation will be started in July.
One of the RVC key issues is to increase the number of innovative businesses and projects. But many of them in the beginning of the career face with starting capital - said Andrei Vvedensky. - Currently at the regional level, the problem seed and preseed investment lack is acute. Moscow seed fund is precisely the tool that will allow to invest at the very early stages. Moscow Seed Fund support for the RVC is an initiative aimed at developing an innovative market in a particular region, which may in future be extended to other regions of the country. RVC’s participation will be based not on the formal entry into the government fund, but on a real examination transfer, exchange experiences and information about the projects. Projects that have passed through the Moscow seed fund may expect subsequent rounds of investment funds with RVC, including from the RVC Seed Fund. In the process of initiative elaboration our colleagues from the Moscow fund of venture capital investments promoting actively used the tried and tested practice and experience of RVC to ensure maximum synergy and flexibility of the tool.