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. Last Updated: 07/27/2016

13 Firms Bidding to Manage State Venture Capital Funds

Thirteen companies submitted bids to manage new state-supported venture capital funds, rallying behind the government's call to boost the country's fledgling venture financing industry.

"Thirteen companies is a solid number," Russian Venture Co. spokeswoman Tatyana Goryachikh said Monday. "Their participation in the first tender is a vote of confidence for the venture capital industry's potential."

Most of the companies that submitted bids were Russian, she said.

The venture company, created by the government last August, took bids from fund managers from March 25 to April 15 and will announce the winners on May 14. The companies that win the tender will set up venture capital funds to channel investment into innovative technologies including aviation, energy conservation and biomedical, according to Economic Development and Trade Minister German Gref, who is chairman of the venture company's board.

The Russian Venture Co., with a charter capital of 5 billion rubles ($190 million), will act as a minority shareholder in at least 10 new venture funds. Each fund manager that wins the tender must attract 51 percent of a fund's total capital from private investors, and the venture company will provide the remaining 49 percent.

Fund managers must invest at least 600 million rubles and no more than 1.5 billion rubles in any single venture fund, according to the Economic Development and Trade Ministry. They are forbidden from spending more than 4.8 billion rubles on stakes in all the funds during the venture company's first tender, the ministry said.

The venture funds, set up to boost public-private cooperation aimed at diversifying the economy, will make their first investments in June or July, Gref has said.