East-West Digital News 16 July 2012
The Moscow Seed Fund, a fund set up by the Moscow government to promote venture investment in local startups, announced earlier this month its decision to provide loans to innovative companies co-invested in by venture funds and business angels.
A list of 12 such co-investors, picked on a tender basis, was approved by the fund. Among them are Prostor Capital, Rye, Man and Gore Securities, Pavel Cherkashin, and Igor Ryabenkiy.
Under the terms of the offer, the Moscow Seed Fund will fork out up to 8 million rubles, approximately $246,000, in 12% loans to back companies that receive investments from the 12 tender winners. The latter can make independent decisions regarding investments, but, to be eligible for government co-financing, they are not expected to put up more than 30 million rubles, or approximately $923,000, per investor.