Russian VC invests $60m in Israeli high techOct. 17, 2013
A large delegation of Russia's top venture capitalists will attend the "Globes"-Ernst & Young Journey 2013 conference on Thursday. They will be joined by CEOs of prominent Russian high-tech companies, including Yandex CEO Arkady Volozh, Game Insight CEO Alisa Chumachenko, who will participate in a special event to tighten Israeli-Russian ties and encourage the search for opportunities in the two countries. Ernst & Young estimate that Russians have invested $60 million in Israeli in the past two years.
"Total venture capital investment in Russian high tech now equals investment in Israel, about $1 billion a year, and it is growing steadily," says Ernst & Young Israel partner Noam Canetti. "Although bureaucracy and the business environment continue to be a challenge, foreign venture capital funds have begun making direct investments in Russia, and Russian companies have gone public in the UK and the US."
Ernst & Young estimates that 20 venture capital funds and private investors operate in Russia, in addition to foreign funds.
In the past few years, the Russian government has provided billions of dollars in support for high tech, through grants and investments via organizations and funds, such as RVC, a government company similar to Israel's Yozma Venture Capital, and Skolkovo, in order to accelerate the development of industries based more on innovation than natural resources, such as oil and gas, which are the mainstay of Russia's economy.
For the full Globes news item click here.