Workshop on Approaches and Prerequisites for ‘Seed’ Venture Industry Developments in Russia
Dear Ladies and Gentlemen,
Let me welcome you to the round table dedicated to ‘seed’ venture financing in Russia. First of all, I would like to thank our colleagues and the organizers of today's event from the Russian Venture Company and Atom-Innovation Center and all of you who came to participate in this event.
As you know, ISTC gives high attention to the commercialization of scientific and technological research and ideas. It is not necessary here to say that issues related to the promotion of high technology products and results is extremely complex, long lasting and multi-stage.
One of the most important stages in the commercialization of high technology products is the initial stage which influences the fate of a future product or service. At this stage, experimental production is being formed, certification and presentation of goods to the consumer and the sale of the first small batch of goods. Funding is necessary even for the production of a small batch of goods, which is risky at that stage. Experts calls this stage as a ‘seed’ stage, when the future of the technology is in its emerging phase and a strategy to market a product or service needs to be is worked out.
Experience of the commercialization of research and development shows that at the initial stage, venture capital is the prevailing, if not the main source of funding.
In practice, a producer of high-tech technology is far from an understanding of what information should be provided to the potential investor on the project. For this reason, many, even very good projects remain on the shelf in the form of undeveloped business proposals or "raw" business plans.
Thus, discussion should be between the scientists and the investors (through, for example, entrepreneurs) to help the developer to describe the commercial potential of his invention, to make necessary market research, conduct a risk analysis, develop a business plan for the project and bring an idea or invention in the form of ready-made solution to market.
ISTC has accumulated interesting experience in the selection of potentially commercial high- tech projects, has created a clear system for their financing, management, evaluation of intellectual property, to bring new technologies to the market place. With its extensive international relations ISTC successfully looks for partners for co-financing and to implement scientific projects. With over two thousand partners in various countries, such as Toshiba, Nissan, General Electric, Bayer, as well as having the support of state organizations in Russia, the United States, European Union, Canada and Japan, our organization is a platform in inter-industry technology transfer and projects of ‘seed’ stage generation.
Moreover ISTC has a broad database of already implemented projects of which some have been successfully commercialized.
In conclusion, once again I would like to thank you all for taking part in this seminar, and I express a wish for further mutually beneficial cooperation in the framework of project implementation and development of venture financing in Russia. Moreover, I suggest all participants, which are the main consumers and catalysts for innovations, combine their efforts to achieve the goals common to us all.
The International Science and Technology Center (ISTC) is an intergovernmental organization connecting scientists from Kazakhstan, Armenia, Tajikistan, Kyrgyzstan, and Georgia with their peers and research organizations in the EU, Japan, Republic of Korea, Norway and the United States.
ISTC facilitates international science projects and assists the global scientific and business community to source and engage with CIS and Georgian institutes that develop or possess an excellence of scientific know-how.