The Ministry of Economy proposed to give VEB the right to take risks in venture investments

The Ministry of Economic Development proposed to remove the restriction on the investment of the state corporation VEB.RF into high-risk tech start-ups by giving it the so-called right to risk, writes newspaper “Kommersant” with reference to the draft resolution of the department.

50 billion rubles can be allocated for a new portfolio investment program. from the capital of VEB, which is approximately 30% of all venture investments in Russia in 2021.

“Now the mandate of VEB.RF is limited in terms of the possibilities of financing high-risk technological projects of early stages. As a result, VEB.RF funds cannot be used for their development. In this regard, it is necessary to change the rules for supporting high-tech projects so that VEB can invest in them, ”the state corporation reports.

The authors of the initiative note that the volume of venture investments in Russia in 2021 amounted to only 0.15% of GDP compared to 1.2% in the US, China and the UK. Such a lag limits competition in the technology sector of the economy, making development in the Russian Federation unattractive for innovative companies.

Alexey Miroshnichenko, First Deputy Chairman of VEB, explained that the proposed approach involves the establishment of a portfolio approach to assessing the break-even of projects within the established investment limit. It also provides for taking into account “an average expected return as it could be estimated at the time of the investment” and not just the actual return on investment.

How wrote Earlier, Vedomosti, the government decided to reduce the threat of criminal prosecution and administrative pressure on participants in venture projects with state support. To improve the conditions for venture investment, it is proposed to significantly soften the parameters of the right to risk mechanism, which regulates the conditions for investing in start-ups using budgetary resources. The new edition of the right to risk has been included in the concept of technological development.

First, they want to remove the obligation from development institutions to control the targeted spending of funds in venture projects, where the share of extrabudgetary sources exceeds 25% of the total amount of investments. Secondly, it is planned to reduce the risks of bringing charges of misuse or inefficient use of budgetary funds for conscientious entrepreneurs. In addition, it is planned to improve the procedure for resolving disputes and assessing the cost of a startup in accordance with the Civil Code (CC).

The right to risk is enshrined in the law to create clear rules for financing venture projects for both the state and investors, as well as reduce possible criminal prosecution when making investments using state funds, the Ministry of Economics noted then.