Albina Nikkonen

Venture Capital Industry in Russia(market review)

Geneva 3 May 2007

Russian Private Equity &Venture Capital Association

At the Beginning

Summit of G7 countriesTokyo 1993

11Regional Venture Fund of EBRD

5 Funf with IFC & EBRD as Investors

3 Funds with USA participation

•Market Economy Start

•Lack of Understanding of Russian realities by the Fund Managers (Russian Economy Crisis)

•Weakness of Fund Managers Community (funds in different regions and managers from different countries)

First Stage1993 - 1998

Main Problems

Creation of RVCA1997

RVCA MISSION

Promotion of Establishing and Development of Venture Industry in Russia

RVCA GOAL

Lobbying of the Interest of Venture Capital Community (including Private Equity Investments)

•Formation of Favorable Entrepreneurial Climate in the Country

• Information Support of the Venture Community (Industry Analysis)

•Creation of Communication Courts for the Companies and Investors

•Training of Qualified Specialistsfor Venture Capital Business

RVCA Main Tasks

RVCA Role: Coordination of Efforts

R&D

Venture Investors

Government: Infrastructure of Venture

Capital Business

Innovative Company

Market

• Reduction of Competition from Western Rivals

• Strengthening of Competition Advantagesof the Venture Capital because of Bank Systems Crisis and Lack of Long-Term Loans

• Loosening Bureaucratic Pressure Against Investors

• Growing