Russian government and university VC fund set up joint seed fund

RVC, Russia’s national fund of funds for innovation, and Phystech Ventures, a Russian venture fund, are putting together Phystech Ventures II, a new VC fund, the RVC website announced. 

The new fund is expected to invest primarily in seed-stage technology projects in areas that will be supported by the Russian government and included in its National Technology Initiative (NTI). These will include new materials, additive technologies, sensor tech, new sources of energy, energy efficiency, big data, IT for security, decentralized financial systems, and some others.

Phystech Ventures II is reportedly developing a portfolio of 15-to-25 technology companies. To meet the $28m capitalization target RVC said it will start by anteing up $8.5m for the fund, with the rest expected to come from private investors. The new fund will operate for ten years, RVC said.

Phystech Ventures II has plans to lead investment partnerships with other VC investors and angel investors. For an initial funding round, partners may shell out anything between $140,000 and $715,000. The fund is expected to take active part in the development of its portfolio companies, helping them at the inception phase to find customers, build patent portfolios and do efficient headhunting, and then enter international markets.

According to Petr Lukyanov, managing partner at Phystech Ventures, the new fund will be "…backing talented and self-motivated entrepreneurs with global ambitions, assisting them as they build businesses in Russia, North America, Southeast Asia and other regions where we are present and have contacts and competencies.”

Phystech Ventures was set up in 2013 by Moscow Institute of Physics and Technology (MIPT) alumni. The fund currently manages $50m in assets.