Silicon Valley firm Draper Fisher Jurvetson on investing in Russia

Modern Russia recently spoke with Tim Draper, founder and managing director of Draper Fisher Jurvetson, on the sidelines of Access Russia, a conference on how U.S. investors can tap into the Russian innovation frontier.   

What brings you to Access Russia?

As venture capitalists, our team at Draper Fisher Jurvetson is looking into Russia as a potential new frontier for tech and innovation. The firm has invested in Russia several times in the past, and each time, it’s been a little bit of a better experience than the time before.  Hopefully this time, our third time, will be the charm.

What topics or themes were of particular interest in today’s conversation?

Today’s panel was really fascinating, with the main topic of discussion being intellectual property rights in Russia. There was an argument as to whether people should try to fight for better intellectual property, or whether they should innovate around the situation as it is.  

Another big theme was the idea that this may be a very interesting time for Russia, as there is a new generation of entrepreneurs who think business is great. The old generation is still clinging to a past in which, for 75 years, business was illegal. However, geographic borders have now fallen, there’s a lot of trade going on around the world, and Russians want to be a part of it.  It’s the dawn of an interesting new kind of peaceful revolution in Russia.  

In terms of investing in Russia, what are the risks and what are the rewards?

Russia has many risks and many rewards.  First and foremost, there is not a strong rule of law—and I think that really needs to happen. Also, Russia really has no forgiving bankruptcy law, which, if in place, could encourage more entrepreneurship and make people less afraid to fail.  These are two of the strongest issues in my mind.  

On the other hand, the rewards are vast. There’s a whole new population with a whole new set of technologies that are just starting to understand the business world, and once they hit their stride, we’re going to see a lot of great innovations coming out of Russia. I expect to see great successes like Yandex rise to the top because of people's hard work. 

Is there anything else you’d like to add to recap today’s panel?

I would say that the panel did a very good job. It was a nice balance of some Russians coming here who actually invest in Silicon Valley, and Silicon Valley people who go to Russia to make their investments. It was a great give and take.

Additional coverage of the Access Russia event is available in this CNBC broadcast interview with Draper’s fellow panelists Craig Barrett, retired CEO and chairman of Intel Corporation, and Igor Agamirzian, CEO of Russian Venture Company.