Investment in offshore venture funds is not the capital outflow

Investments of Russian development institutes in foreign venture capital funds registered in offshore zones, should not be seen as the export of capital, as the money will come back to Russia during the implementation of innovative projects, the Director of Investment Department, a member of the Board of JSC RVC Yan Ryazantsev says.

Ryazantsev told it at the press conference on the establishment and the choice of jurisdiction for venture capital funds that invest in Russia. The work of companies with offshores is often interpreted as the export of capital, and not only here but also in developed countries, - the head of RVC Igor Agamirzyan said.

One of the problems of Russian development institutions is that the creation and operation of high-tech companies in Russia requires, first, taking out money from Russia to invest in the work of foreign venture capital funds, and then returning the funds back through complex mechanisms.

According to Ryazantsev, investing in venture capital funds, registered offshore, is not the capital outflow: We need to look not at the registration area, but at the area where the activity is performed (of venture capital funds). This will be confirmed by any professional.

As an example, he cited the U.S. venture capital fund Kleiner Perkins Caufield Byers, registered in the Cayman Islands, which has invested in more than 800 companies in the U.S., helping to create more than a million jobs in this country.

At present, there are no major competitive on world markets venture capital funds in the Russian Federation, the development institutions of Russia need to invest in foreign-registered funds to get the best result in terms of innovative projects development, Ryazantsev believes.