The government proposed to relax the parameters of the “right to risk” in venture capital investments

The problem of market regulation was discussed at a meeting at the White House dedicated to the concept of technological development until 2030, Vedomosti writes, citing a source close to the government. The meeting was supervised by First Deputy Prime Minister Andrey Belousov, the meeting was attended by representatives of the Ministry of Economic Development, the Ministry of Education and Science, the Ministry of Industry and Trade, the Ministry of Digital Development, as well as science and business experts .

In order to improve the conditions for risky investment, it is proposed to significantly soften the parameters of the “right to risk” mechanism, which regulates the conditions for investing in new companies with the participation of budget funds.

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What is offered:

• Remove from development institutions the obligation to control the spending of directed funds in risk projects, where the participation of non-budgetary sources is greater than 25% of the total investment. A source close to the government claims that now the development institution is actually moving from being a shareholder to a controller. Therefore, for many investors, state involvement in projects is seen as toxic.
• Reduce the risk of being accused of misuse or inefficient use of public funds For conscious entrepreneurs. We are talking about those players in the VC market who tried their best and followed the established procedures in the process of working on a startup, but still “didn’t get off the ground”. In particular, for an unambiguous interpretation of the Criminal Code of the Russian Federation, it is proposed to introduce a definition such as “reasonable risk” and fix the criteria by which a technological entrepreneur can be classified as bona fide.
• Improve startup valuation and dispute resolution procedures according to the Civil Code of the Russian Federation. Under existing rules, the development institution cannot withdraw from the company’s capital until a buyer is found who agrees to the purchase price. Therefore, if the fund wants to exit the project, even if it corrects the losses, technically it will not be able to sell the stock until its valuation falls to a level acceptable to a potential investor. At the same time, a technology entrepreneur assumes risks, including criminal prosecution, that are associated with a development institution’s involvement in a portfolio company.