Mandate of Euro Venture Fund

Euro Venture fund invests in research and development companies, projects and innovative

solutions in the field of advanced manufacturing technologies which correspond to the priority

areas of the Fund.


Companies and projects are chosen according to the results of the competition. The competition

involves companies and separate teams of developers carrying out engineering designs with a

significant part of research and development. The designs are expertized by the Expert Scientific

and Technical Council of the Fund with the participation of independent experts and expert



1. Total amount of investment money of the Fund:

  •  10 million euro (about 650 mln rubles).

2. Transaction amount:

  •  from 1 to 10 million rubles (at Seed and Start-up stages).
  •  from 10 to 50 million rubles (at Early Stage and Expansion).
  •  in certain cases a larger amount of the transaction is possible

3. Company development stages:

  •  initial stages — Seed and Start-up
  •  Early stage with the following set of characteristics:

- experienced team;

- product (which has been tested in the company);

- strategic vision of stage by stage development of the company;

- business plan as detailed as possible with an indication of financial indicators of the Company

in the forecast periods;

- clear understanding of outlets and competitors, fund raising objectives;

- technological know-how, intellectual property (registered patents are desirable);

  •  stage of development (Expansion) — growing companies with the annual turnover over

500 million rubles with the potential for significant capitalization growth.


4. Geographical limitations are not provided for Companies, however, priority is given to

Russian technology companies (special preference may be given to the companies located in St.

Petersburg and Leningrad Region) having the potential to set up the business competitive not

only at the local market but also at the global one.


5. Dedicated portfolio: 10–15 transactions (solely by the Fund and in syndicate with other

partners and funds).


6. Period of ownership of Companies’ shares: 3-5 years from the first investment round


7. Potential of the Company’s sale (withdrawal): the project will be more attractive if several

withdrawal scenarios are available including sale to strategic or financial investors. An important

point is the readiness of founders to sell a controlling stock (from 51% to 100%) with the Fund is

important. Alternative exit mechanisms such as reverse withdrawal (sale of the company to its

owners or management) secured by property pledge as well as dividends shall also be provided



8. Representatives of the Fund are members of the board of directors of each portfolio company.


9. Representatives of the Fund actively cooperate with the Company management. The Company

management draws up periodical (monthly and/or quarterly) financial statements in the forma

agreed upon with the Fund.


10. Industry-based focus of the Fund:

The projects falling within the scope of the National Technology Initiative (NTI) and determined

by the TechNet area are of priority interest.

TechNet is a cross-industry, cross-market area of development of both high-technologies

industries and NTI markets, promising markets of future, for example, AeroNet, MariNet,

EnergyNet, FinNet, NeuroNet, HealthNet, SafeNet and FudNet markets. I. e. these are solutions

which are to large extent at the intersection of the most high-technology industries.

In this connection the key technologic interests of the Fund include:

  •  Digital design and modeling including supercomputer engineering
  •  Industry-based applied programming and automation
  • Instrument engineering and robotics including flexible workcells and robot systems
  • Automation, all kinds of sensors, industrial Internet
  • Electronics, microelectronics, telecom
  • Small scale power generation, power efficient technologies (aimed at decrease of power

consumption by industry facilities, housing and public utilities and municipal infrastructure


  •  Additive and hybrid technologies
  •  Virtual and augmented reality technologies
  •  New materials, first of all, composite materials
  •  Waste processing and recultivation (recycling)
  •  Mining, metallurgy (medium-format projects) and hydrometallurgy
  •  Biotechnologies (not related to clinical tests)
  •  Agrotechnologies
  •  Food and processing industry


In the field of creative industries:

  •  Projects aimed at education (including online technologies) both in humanitarian and

scientific and technical area

Project selection criteria:

  •  unique characteristics, science and technology novelty
  •  engineering feasibility
  •  availability of working prototype
  •  market potential and size, business model scalability including external markets
  •  business model commercialization potential
  •  competence, experience and motivation level of the team
  •  availability of a clear investment consumption plan