Belarus’ first venture projects estimated at $3-5 million each

The amount of financing of the first venture projects in Belarus will range from $3 million to $5 million each, Igor Voitov, Chairman of the State Committee for Science and Technology, told reporters.

According to him, development of the legal framework for venture financing mechanisms in Belarus was completed in September this year. Belarusian Innovation Fund has already compiled a databank of the projects to be implemented with the use of venture financing tools. “These are the projects of the Horizont holding company, Intercaps plant. There are also proposals in microelectronics, energy-efficiency,” Igor Voitov noted. Experts will analyze the prospects of each of the project. “We will see which projects will have the greatest added value, which are most promising from the technological point of view. They will be funded on a priority basis,” he added. It is expected that the funds for these projects will start to be transferred this year.

“Each of the projects will require from $3 million to $5 million. This sum will be used during two to three years. There are cheaper projects too,” he said.

Igor Voitov also said that Belarusian experts are holding talks with counterparts from Russia and Kazakhstan on the creation of a single venture fund. Recently this issue was discussed in Minsk at the first Belarusian Venture Fair. “They are interested in joint work. So are we,” Igor Voitov stressed. The sides will develop a common legal framework for joint venture projects and will sign a corresponding agreement. In addition, the sides will determine joint funding of such projects. “A part of the funding for venture projects will be allocated by the states, some part by the Eurasian Development Bank which shows interest in venture financing,” Igor Voitov informed.

It is expected that the creation of a venture funding system in Belarus will provide an additional impetus to the implementation of high-risk projects associated with the research, development and manufacture of new types of high-tech products. Now many scientists, knowing that their projects are risky and success is uncertain, refuse to materialize promising scientific ideas. At the same time, international experience shows that if one in ten of such projects is successful, it can cover the losses of all others.

According to