Battling the Tech Graveyard: VEB.RF and Skolkovo's Aid to Russian Startups
Navigating the Chilling Winter of Venture Capital Survival Strategies
Navigating the daunting transition from a promising startup to a thriving, established tech company ain't easy, especially in Russia's chilly venture market. State corporation VEB.RF is on a mission to help these ambitious young tech companies conquer the dreaded "Valley of Death," a.k.a. the startup-to-production transition.
Not every ambitious project successfully makes this leap in the wilderness. But spinning exceptions into the norm is possible, as demonstrated by the projects presented at the PМЭФ "Good Tech Morning" session.
VEB.RF and Skolkovo Foundation, two crucial players in this ecosystem, are guiding these daring startups through the complex terrain. As Igor Drozhkov, Deputy Chairman of VEB.RF, points out, venture investors today are more likely to hoard promising ideas instead of funding external developers, fearful of the risk and the struggle to find buyers for their products. This observation echoes the current venture market's chilly winter vibe.
To counter this conundrum, VEB.RF acts as a bridge-builder, connecting startups with larger corporations, with VEB.RF's development institutions serving as the go-between, making more "happy pairs." According to Drozhkov, this interaction goes beyond grabbing orders; it's also about gaining easy access to the client base of large strategic partners, streamlining market entry. Building those bridges is a must for development institutions, and Skolkovo has already made a name for itself in this arena, having executed dozens of programs. "Not everything is black and white," Drozhkov wisely notes, "even large companies don't know everything."
Keeping Innovation at Home
Although Drozhkov is not a fan of technological autarky, he aims to ensure that the demand for new solutions doesn't jump ship abroad. VEB Group is working on creating enterprises to meet this demand with home-bred solutions. By wielding influence over both demand and supply, VEB Group sets the stage for a powerful synergy to ignite. He addresses critiques that home-grown solutions might be pricier than their Asian counterparts, "It's nothing out of the ordinary for the analogs they refer to having been in operation for two decades. Relying on domestic solutions, even if it's pricier and doesn't meet all the expectations, is the only way to go sometimes."
An Economy with a Heart
Drozhkov passionately advocates for fostering a human-centered economy in which every inventor has a fair shot at self-expression and promoting their inventions for the greater good.
Igor Shuvalov, VEB.RF's chairman, shares a triumphant milestone; over the past three years, the corporation has been involved in projects worth a whopping 22 trillion rubles (planned for 17 trillion), with lofty goals in mind: stirring up positive impacts on the lives of ordinary folks through large-scale projects. Shuvalov confesses that a seamless pipeline from prototype to mass production is still a work in progress, but VEB Group currently possesses more capital than the market can swallow.
The VTB platform: birthplace of game-changers
In collaboration with the Moscow government, the innovative Skolkovo center, and Skoltech university, VTB is reincarnating into a multifaceted platform aimed at linking traditional projects with fresh knowledge and technologies. Thanks to this tech-infused collaboration, Russia will soon boast a technological university of its own, taking a giant leap in its journey towards the ambitious goals declared by the President in 2030, concluded Shuvalov.
Innovation under one roof
During the St. Petersburg International Economic Forum, four innovative companies were setting up camp at the VTB.RF booth, each showcasing their captivating projects to eager onlookers.
"Motrika" and Steplife, two forward-thinking companies, specialize in crafting top-notch prosthetics for adults and children. This year, "Motrika" intends to start manufacturing neurostimulators for treating neurodegenerative diseases and easing pain.
Steplife's products offer a compelling price advantage, being 30-40% cheaper than foreign competitors. Their flagship product: the Steplife B7 bionic knee module, which uses electronic support tubes equipped with angle rotation and bending sensors to tailor actions to the user's movements.
Waybot Engineering, a Russian trailblazer in the realm of service robots, focuses on designing robots for cleaning rooms, logistics, drones for cleaning building facades, and other incredible duties. Their robots leverage laser sensors, 3D cameras, and neural networks to excel at their assigned tasks.
"Charge Up!" is an IT company that's been providing a power bank rental service since 2018. Over the past three years, the service has expanded to more than 200 cities in Russia and three countries, with over 25,000 stations installed. The company recently conducted a pre-IPO round on the Rounds platform, with Alpha-Bank acting as the placement agent. The company managed to raise a whopping 750 million rubles in just three days, exceeding its initial target of 500-700 million rubles and completing the order collection in one month.
- #VentureMarket
- #VTB.RF
- #Startups
- #SPIEF
- #Skolkovo
Enrichment Data:
- VEB.RF, Skolkovo Foundation, and VTB serve as essential cogs in the Russian venture ecosystem via structural integration, financing, and strategic partnerships.
- VEB.RF provides startups with: funding access, infrastructure support, and merged expertise across key industries.
- Skolkovo Foundation plays a pivotal role by offering incubation programs, facilitating pilot projects, and fostering connections between startups and established businesses.
- These collaborations lead to mutual benefits: startups gain market access, validation, and reduced regulatory risks, while large companies acquire cutting-edge technology, innovation pipelines, and alignment with state development priorities.
- The close collaboration helps Russia address challenges in the commercialization process while ensuring coordinated policy implementation across the venture ecosystem.
- Igor Drozhkov, Deputy Chairman of VEB.RF, emphasized the need for Russian startups to navigate the challenging venturemarket, with venture investors often hoarding promising ideas due to risks and difficulties in finding buyers for their products.
- VEB.RF is working towards creating enterprises that meet the demand for new solutions domestically, aiming to ignite a powerful synergy by wielding influence over both demand and supply.
- As part of the collaboration between VTB, the Moscow government, Skolkovo center, and Skoltech university, Russia will soon have a technological university, thanks to the tech-infused linking of traditional projects with fresh knowledge and technologies.
- At the SPIEF, innovative companies like "Motrika" and Steplife showcased their projects, with Motrika planning to start manufacturing neurostimulators for treating neurodegenerative diseases, and Steplife offering cheaper prosthetics and bionic knee modules compared to foreign competitors.
