New Investment Funds

Far East High Technology Fund

Investment in high-tech companies of the Far East

Investors Fund 
RUSNANO, Far East Development Fund, Russian Venture Company

Investments Geography

Year of first closing: 2017

Target Fund size

The Fund has been created on May 2018 RUSNANO, RVC and the Far East and Baikal Region Development Fund following the instruction of the President of the Russian Federation Vladimir Putin with the aim of developing innovation system in the Far East, actively implementing advanced technologies and increasing the share of high technology products in the GRP.

The total budget of the Fund at the first stage will amount to RUB 4.9 billion, of which RUB 1.7 billion will be invested by FEBRDF and RUSNANO, another RUB 1.5 billion will be contributed by RVC. The average amount of one investment in the projects of the venture stage will not exceed RUB 100 million, in the projects of the growth stage—RUB 500 million.

The Fund’s investment focus is on nanotechnology projects, as well as projects corresponding to priority markets of the National Technology Initiative, including unmanned transport, neurotechnologies, advanced production technologies, intellectual energy, etc.

The Fund invest in growing Russian companies, which create high technology products and services with high export potential, implement projects related to international technology transfer, launch new types of products with high added value and localization of high technology equipment production.

On September 2018 the Far East High Technologies Fund has entered into a number of agreements with companies developing promising innovative technologies. It may invest up to RUB 350 mln in these companies.

A number of major Russian industrial companies have expressed interest in the Fund’s projects. Notably, as part of the Eastern Economic Forum, the Far East High Technologies Fund has signed a number of partnership agreements with the government of the Sakha (Yakutia) Republic and major manufacturing companies working in the mining sector, aimed at promoting promising innovative developments and implementing them in practice.

Fund Projects

A VR staff training system using augmented reality technology

The Fund plans to invest assets (of up to RUB 30 mln) in the further development and implementation of VR training systems developed by the project’s initiator. These systems will allow employers to significantly reduce their spending on staff training and, thanks to VR digital technology, enable staff to master industrial processes without any health risks to the employee or risk of damage to the employer’s property. For example, they can be used to develop emergency scenarios for use in complex industrial facilities such as deep mines and oil rigs. A number of major industrial companies in the Far East have already shown interest in this technology.

Energy sources based on hydrogen fuel elements

BMPower’s innovative fuel elements based on proton exchange membranes make it possible to transform chemical energy in the form of hydrogen into electrical energy, without burning the hydrogen, which is a very ineffective process. This technology also solves the problem of the low power capacity of batteries. Typical cargo drones can fly for a maximum of 15 minutes because their batteries have a low power capacity, but BMPower’s electrochemical power elements make it possible for autonomous equipment (unmanned aerial devices, robotic systems, unmanned sea and river vessels) to function for over 3 hours on a single charge. This technology has applications in both industry (for example, to monitor pipelines and transport networks in the Far East) and in such sectors as agriculture and the arms industry.

Smart modular system to automate industrial health and safety-related business processes

The developer of a smart modular system to automate industrial health and safety-related business processes. The software developed by Visitech is an example of the successful introduction of digital technologies into the manufacturing process: it allows a company to use smart automation to manage its industrial health and safety systems more effectively. This combination of equipment and software (Integrated Systems to Ensure Work Safety) allows companies to make the manufacturing process safer and increase both production speed and quality. The Fund may invest up to RUB 70 mln in the project.

Autonomous system for supplying power to inaccessible facilities

Technoautomat Research and Production Enterprise develops autonomous electrical supply and monitoring units. The equipment developed by Technoautomat allows natural gas transported through pipelines to be converted into electricity and heat energy. The equipment is installed at tap points along pipelines and is an effective solution to the problem of supplying electricity to small communities and businesses in the Far East, if these are located near gas pipelines. The module is equipped with equipment and materials that allow it to work in the most extreme climatic conditions. The company plans to use part of the money provided by the Fund to equip its manufacturing facility in Khabarovsk for the mass production of the autonomous electrical supply and monitoring units. The Fund may invest up to RUB 150 mln in the project.