To authors of projects
For the purposes of the investment process of the Fund, its assets can only be invested into innovative companies whose activities lie within one of the priority areas of development of Russian science, technology and engineering and (or) whose products are on the list of critical technologies of Russia and its Investment Memorandum.
As part of its investment process, the Fund audits investment projects submitted solely by its Venture Partners registered in accordance with the Regulations for the System of Venture Partners of RVC Seed Fund.
At Round 1, the Fund invests a maximum of 75% of capital demanded by an innovative company in an amount not exceeding RUB 25 000 000 (twenty-five million roubles).
Key assessment criteria used by the Fund to select innovative companies are as follows:
- Potential for significant growth of an innovative company;
- Innovative company complies with the Investment Memorandum of the Fund;
- Qualified team;
- Transparent ownership structure of the innovative company.
Project screening is carried out by the Venture Partners of the Fund. The screening procedure, among other things, includes analysis of disclosed information, comments submitted by initiators of a project, experts and professionals of the innovative company, as well as opinions of its partners, followed by a complex feasibility study.
Due diligence of innovative companies
For the purposes of its investment process, the Fund carries out due diligence, including professional analysis and valuation of the innovative company (its project), opinion on the innovative company (its project), investment attractiveness and reliability of the information provided.
Innovative company growth
In compliance with the transaction terms, Venture Partners, assisted by the Fund, may interact with portfolio companies, map out measures to increase their capitalization (assessed market value), get involved in determination of the extent and form of engagement in the management and operation of portfolio companies.
If it is provided by the transaction terms, Venture Partners may take a pro-active part in the management of portfolio companies, and, alongside with the management team of portfolio companies, the Fund and private investors, undertake every possible effort to facilitate the growth of portfolio companies and their promotion to the market.
Exit from an innovative company
The increase of capitalization of a portfolio company may take from one to five years. After that, the Fund will consider exiting from the project—through sale of shares to a strategic investor or venture fund, or through management buy-out.
Venture Partners of the Fund may, in cooperation with the Fund, jointly create exit opportunities.
The resolution of the Fund’s Investment Committee to exit a portfolio company is based on a number of factors, including significant performance in realizing its innovation potential, analysis of market trends or appearance of a strategic buyer.