Russia-Focused Venture Capital Supports In-Bound Technology Transfer and Company Building: An Analysis of Investment Trends and Outcomes

Authors

  • John M. Garvey K&L Gates, LLP
  • Shann Kerner K&L Gates, LLP
  • Axel Tillmann Russian Venture Company
  • Dmitry Kuzmin Russian Venture Company

DOI:

https://doi.org/10.5912/jcb604

Keywords:

Russia, Government, Venture Capital, Investments, Biotechnology

Abstract

This paper analyzes the approaches taken by the Russian government to promote innovation in the biotechnology sector within the country.  Russia is economically strong, currently with a trade surplus, and the country is investing broadly in initiatives that have resulted in in-bound technology transfer, as well as an expansion of the private sector.  These initiatives include government venture capital and investment funds, as well as physical technology “incubator†centers.  The result has been an increase in the number of clinical-stage biotechnology companies operating in Russia, as well as an increase in the number of pharmaceutical candidates undergoing trials in the country.  The biotechnology “boom†has also resulted in an increase in the number of early-stage companies.  This paper investigates current deal and investment trends from the funds that are the principal supporters of biotechnology companies in Russia.

Author Biographies

John M. Garvey, K&L Gates, LLP

is a partner in the international law firm of K&L Gates LLP.  He is a member of the firm’s Intellectual Property, Transactional and Life Sciences practice groups, as well as their emerging technologies and venture capital practice groups.  He works with a broad range of high-technology and life science clients on matters of IP strategy, patent portfolio creation, investments and capital raises, M&A, technology transfer and cross-border transactions.  He is a co-founder of Parcell Laboratories, a private Boston-area company providing adult stem cell-based therapeutic and diagnostic products for numerous regenerative medicine applications.  Dr. Garvey received his J.D. fromFranklinPierceLawCenterand his Ph.D in Molecular and Cellular Biology fromBrandeisUniversity.

Shann Kerner, K&L Gates, LLP

is a partner with K&L Gates LLP, and a member of the firm’s Intellectual Property practice and is co-chair of its Life Sciences group.  She works with clients on world-wide IP strategy, patent portfolio creation and protection, IP due diligence for M&A, and IP legal opinions.  Dr. Kerner is a board member of the US/Russia Chamber of Commerce of New England. Dr. Kerner received her Ph. D. from the University of Connecticut Medical School and her J.D. from Suffolk Law School.  Previously, she held as joint faculty position at Harvard Medical School and Children’s Hospital in Boston before becoming an attorney.

Axel Tillmann, Russian Venture Company

is known as a serial entrepreneur, and currently serves as the CEO of RVC-USA, theUSsubsidiary of Russian Venture Company. Mr. Tillmann brings nearly three decades of leadership experience to RVC-USA, having directed numerous startups to and through successful exits.  Prior to RVC-USA, Mr. Tillmann held positions with Alpha Consult, Azure Technologies (acquired by GN), ENIRA Technology (acquired by ArcSight/HP) and GBS Laboratories.  In 1998 he founded NOVILIT, Inc., a firm specializing in the design of electronic automation products and protocols. Mr. Tillmann currently advises a number of industry organizations and serves as Chairman of the Board of DressFormer, Member of the BoD of SMI, and is the BoA of several other companies. He holds a Bachelor of Science in electrical engineering from the University of Wuppertal in Germany as well as degree in Business Administration.

Dmitry Kuzmin, Russian Venture Company

is a neuroscientist and entrepreneur, who graduated from theMoscowStateUniversityand holds a Ph.D. in neurochemistry from Institute for Bioorganic Chemistry (Moscow) and Max-Planck-Institute for Brain Research (Frankfurt).  He has published on the structural biology of cys-loop receptors, rational drug design, neurochemistry and mechanisms of inhibitory neurotransmission.  He holds the position of Research Associate with University College London.  Dr. Kuzmin has extensive experience in R&D management, due diligence and investment consulting in biotechnology. Currently he is a U.K. Partner with the Russian Venture Company. 

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Published

2014-01-01

Issue

Vol. 20 No. 1 (2014)

Section

Article