Russian Venture Company (RVC) and the Ministry of Economic Development presented a draft development strategy for the venture capital and direct investment market until 2030 on Tuesday, December 18. The strategy should help attract foreign capital to Russia and expand the number of active venture capital investors.
The draft strategy for the development of the venture capital market until 2030 was drawn up following an order of the Ministry of Economic Development. According to the authors of the strategy, it should help increase the annual amount of transactions in the Russian venture investment market by 30 times by 2030. The total volume of transactions should reach RUR 410 bln ($6.1 bln) a year, while the number of high-tech projects being developed in Russia should double to 40,000 per year. The market for innovative products should also expand by 100%, to RUR 10 trln ($150 bln).
The strategy should also help remove barriers for the development of the Russian venture capital market, eliminate legal restrictions and create economic incentives for new investors to enter the market.
The strategy includes a series of measures to attract corporations to the venture capital market. Tax incentives are proposed, such as cutting the base for the income tax when corporate venture funds are created. By 2030, the total amount of corporate capital in the venture capital market should reach RUR 960 bln ($14.4 bln).
Deputy General Director, RVC Investment Director Alexei Basov said that the strategy should help radically transform the Russian venture capital market.
“The strategy will make this market more competitive internationally,” he said.