Leta Group, the management and investment company in the sphere of information technology, creates its own venture capital fund Leta GIV, which will finance IT start-ups, as well as provide them with other support in the development.
The Fund website is www.leta-venture.ru
The Venture Fund is a private non-public equity fund. The Fund does not attract external sources to finance its projects. Leta GIV is formed under the proceeds from the net profits of Leta group companies. The Fund finances the company in exchange for capital subscription.
Leta Group Company has been investing in IT companies since 2007, but before that was either acquisition of companies and affiliation to a group or opening new areas. The first experience of structured investment was the creation of a micro investment fund. The aim of this project was to support the creation and accelerating the market launch of high-quality software for a wide range of users. Fund financing aimed at small Russian companies and individuals.
The company has begun international operations since 2008. The group has its own subsidiaries in India (Bombay) and the U.S. (Silicon Valley and New York), and also conducts its operations in other 10 countries.
The advantage of Leta GIV is that the fund is established not by a financial institution but by an IT company that understands the real needs of start-ups, for as early as 2003 the Leta company itself was such a startup. The underlying principle of the fund is understanding that new projects not only need money but also other support, - says the company’s report.
The Leta Group’s future investment strategy will consist of two parts: investing in companies with a view to their incorporation into the Leta, and venture capital investments by Leta GIV under which the companies do not belong to the group, but remain separate business units.
The main challenge for the new projects is to find customers and access to the market they need. After all, to make the product is only a part of the work, the main thing is the ability to sell it to customers, - said Sergey Toporov, the chief investment manager of Leta GIV. – Often new projects do not need 100 RUR, but 100 friends and only 10 RUR, as 100 friends are easily converted into 10 K RUR. Traditional venture capital funds do not offer access to customers, they provide the funding and the project itself should run and look for consumers, what takes the main efforts, while the project does not develop. At the same time, Leta GIV considers its main goal the access of the start-up to the customers.