VTB and the EBRD are creating a venture fund with a capital of 3 billion rubles.
VTB Group is joining forces with the European Bank for Reconstruction and Development (EBRD) to create a venture fund with a capital of 3 billion rubles (88 million euros), in order to stimulate the development of advanced and innovative technologies.
In addition to VTB, the fund is sponsored by the state corporation "Russian Venture Company". The fund will be managed by VTB Asset Management CJSC together with DFJ (Draper Fisher Jurvetson), one of the leading venture capital companies in the USA.
The EBRD, investing 612 million rubles, should receive a package of 20 percent. In addition to the invested capital, VTB said in a statement, the EBRD makes an invaluable contribution in the form of its unique experience in the field of investments in the Russian market.
The strategy of the fund's work in Russia will be investments in the amount of 1 to 10 million US dollars in each company, as a rule, in exchange for a significant minority stake in its shares. It is supposed to invest in companies at various stages of development, providing start-up capital for the creation of new companies, as well as for ready-made projects requiring development.
Among the initial goals of the fund are investing in information technologies and the Internet, semiconductors and biotechnologies, medical and laser equipment, nanotechnology and composite materials, as well as in other promising and profitable areas that can increase the competitiveness of the Russian high—tech sector on a global scale.
VTB Bank OJSC is the second largest Russian bank by assets after Sberbank. Its authorized capital is 67.241 billion rubles. The state's share in the authorized capital of the bank after the IPO decreased from 99.9% to 77.47%.
VTB Group's net profit under IFRS in 2006 increased 2.3 times to $1.179 billion. VTB Group's consolidated net profit under IFRS in the first half of 2007 decreased by 12.5% to $504 million. VTB Bank's net profit for January-October increased by 46% to RUB 12.2 billion.
The EBRD is the largest investor and, in addition to allocating its funds, attracts significant amounts of foreign direct investment. Its owners are 60 countries and two international organizations. The Bank invests mainly in private enterprises, usually jointly with its commercial partners. Today, the EBRD's investment instruments are used in 29 countries — from Central Europe to Central Asia.
Portal "Eternal youth" www.vechnayamolodost.ru based on NanoNewsNet materials