Navigating the Tech Valley: Insights from VEB.RF and the Skolkovo Foundation
Enduring Winter's Freeze in the VC Landscape: Strategies for Navigating Winter Funding Slumps
Struggling to make the leap from startup to mainstream production? VEB.RF, a state corporation, is on a mission to guide Russian tech innovators through the 'valley of death'. They're aiming to transform exceptions into the norm, demonstrating strategies that can help these companies thrive in the challenging venture market.
The winter-like conditions of the venture market have venture investors playing it safe, favoring in-house development over funding external developers. This cautious behavior stems from the difficulty in finding buyers for their products and closing the investment cycle.
VEB.RF is addressing this issue by acting as a matchmaker, strengthening relationships between startups and large companies to create more successful partnerships. As Igor Drozhkov, Deputy Chairman of VEB.RF, states, "Interaction between small and large companies is about more than just getting an order. It's about accessing the clients of this large strategic partner, making market entry much easier."
According to Drozhkov, large breakthrough projects can't succeed without government support, as demonstrated by tech giants like Elon Musk in the US, who've benefited from orders from the Pentagon and NASA. However, championing technological autarky isn't the solution, as a focus on exports and international cooperation is essential for becoming a leader.
At ISF's Good Tech Morning session, success stories and promising strategies were showcased. For instance, the American entrepreneur David Brown, founder of "Microphones SOYUZ," demonstrated how refusing the line of least resistance - purchasing ready-made solutions in China - led to producing high-demand microphones worldwide.
VEB.RF promotes the ideology of a human-centered economy, ensuring that financial and technical resources are available for inventors to bring their ideas to life and benefit society. The corporation has a significant impact on the economy, participating in projects worth 22 trillion rubles in three years.
To create a continuous chain from prototype to mass production, Igor Shuvalov, the corporation's chairman, acknowledges that more work needs to be done. However, the VEB Group has ample financial resources to support a variety of projects for several years.
VTB is transforming into a platform that connects traditional projects with new knowledge and technologies. This connection aims to realize the country's technological goals announced by the president by 2030. During the St. Petersburg International Economic Forum, four innovative companies were showcased at the VTB.RF booth, demonstrating their groundbreaking projects.
Enrichment Insights:VEB.RF and the Skolkovo Foundation employ structured programs and financial mechanisms to help Russian high-tech startups overcome commercialization challenges. These efforts include:
- Funding for Prototyping and Testing: VEB.RF's Microelectronics Accelerator Program provided funding to 26 projects, covering advanced costs like prototype manufacturing, logistics, and product validation.
- Manufacturing and Logistics Support: Skolkovo facilitates access to domestic and international production partners, helping startups collaborate with factories like ZNTC and CUMEC under a fabless model.
- Commercialization Pathways: Skolkovo provides matchmaking platforms to connect startups with industrial customers. VEB Ventures may focus on scaling ventures through late-stage investments, although specific details are limited.
- Regulatory and IP Assistance: The Microelectronics Accelerator includes intellectual property registration support and compliance guidance to help startups navigate bureaucratic hurdles.
By offering funding, manufacturing access, and industry networks, these institutions reduce dependency on foreign technology while accelerating market entry for startups.
- VEB.RF's Microelectronics Accelerator Program, a part of their mission to guide Russian tech innovators, has funded 26 projects, providing advanced costs such as prototype manufacturing, logistics, and product validation.
- Skolkovo Foundation, in an effort to help startups, facilitates access to domestic and international production partners like ZNTC and CUMEC, enabling collaboration under a fabless model.
- To overcome commercialization challenges, Skolkovo provides matchmaking platforms for startups to connect with industrial customers, while VEB Ventures may focus on scaling ventures through late-stage investments.
- Reducing dependency on foreign technology and accelerating market entry for startups, the Microelectronics Accelerator includes intellectual property registration support and compliance guidance to navigate bureaucratic hurdles.
