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