The state-owned Russian Venture Company, which holds a 49% stake, said the new fund was a closed-end mutual fund set up by VTB Asset Management, a subsidiary of state-controlled foreign trade bank Vneshtorgbank (VTB), for investment in companies developing innovative technologies.
As well as the Venture Company, stakes in the VTB Venture Fund are also held by VTB (30%), the European Bank for Development and Reconstruction (20%) and managers (1%).
The Russian Venture Company was set up by the government in September 2006 to invest in innovative companies via private venture funds, to be formed throughout the country, as a 49% shareholder.
The Venture Company said the VTB Venture Fund is now ready to start investment activity.
According to the state company, the fund will invest in rapidly developing companies operating in sectors such as IT, industrial innovations, and nano- and biotechnology. Investment in projects will range from 50 million ($2 million) to 400 million rubles ($16 million).
The government is planning to set up eight to 12 venture companies to revitalize the country's industrial base in an effort to diversify away from commodity exports and invest in high-tech projects.
