Let's hope that $550mn will educate the next generation without putting the government off too much.
State Venture Fund to Start at $550M:
The government will create a 15 billion ruble ($556 million) venture capital fund by the end of June to help set up new high-technology businesses, Deputy Economic Development and Trade Minister Andrei Sharonov said Tuesday.
Fifteen independently run sub-funds will select the projects to benefit from the fund to reduce the risk of corruption.
The government will supply as much 49 percent of the capital, with private venture capitalists providing the remainder. Each sub-fund is expected to invest in 10 to 15 businesses.
“The program's aim is not to replace the natural flow of investment but to act as a catalyst and an instrument for reducing the risk,'' Sharonov said.
Russia is trying to diversify its economy and reduce its dependence on oil and gas. Along with the new fund, the government has created six special economic zones that offer tax breaks to stimulate the technology industry.
[composed and posted with ecto]