Russian Venture Company on the future of the Russian economy

Modern Russia recently spoke with Igor Agamirzian about the future of the Russian economy.  Agamirzian is the CEO of Russian Venture Company, serves on the board of trustees of the Skolkovo Foundation, and is a member of the board of directors of the Russian Nanotechnology Corporation.

Tell us about the Russian Venture Company.

The Russian Venture Company is a fund of more than $500 million set up by the Russian Federation to help finance innovative startups.  We’re especially interested in providing financing to projects in IT, telecommunications, biotechnology, medicine, nanotechnology and alternative energy.  Last year we were involved in 14 such projects, including one to create innovative solutions for smartphone and Internet users in Russia, and another project to find a way to efficiently recycle reinforced concrete materials.

Why do you think technology represents an important investment opportunity Russia?

I think that technology serves people; it makes their lives easier. While people may be slightly different around the world, they generally have the same basic needs, and technology can help improve quality of life no matter what culture you’re in.  Russia has a lot of room for growth in the high-tech arena, and we’re already seeing some impressive leadership in technological innovation.  It is important for Russia to participate in the global economy, one that is increasingly reliant on technology and online communication. Technology also has the added benefit of diversifying the Russian economy, helping Russia become less dependent on its natural resources and take advantage of its tremendous human capital. 

Where does Russia currently stand with regard to technology?

I think one of the most important recent events was the successful IPO of Yandex, an Internet search service similar to Google. Investors are excited about companies like Yandex that are taking advantage of increasing online ad revenues as Russia’s Internet market starts to take off. 

In addition to Russia’s Internet boom, we’re seeing a lot of multinational corporations conducting their research and development in Russia.  These companies recognize the value of Russia’s human capital, especially the graduates of top engineering schools in Russia.  I myself used to work for Microsoft in Moscow as well as EMC Corporation in St. Petersburg. While working for these companies I came to the conclusion that partnership between Russia and these American and multinational corporations is mutually beneficial. 

How do you think foreign investment will impact Russian companies?

As I said, one of the most important things for Russia is participation in the global economy.  As foreign investors come into Russia, they don’t only bring money; they also bring intangibles like vision and experience.  Russia has great schools and people willing to take risks to start businesses—but many Russians simply don’t know the right steps to take.  Foreign partnerships help address this issue. So in some ways our foreign partnership is as much about mentorship as investment, and in the end, everybody wins.