Russian Sitronics and Armenian government to set up joint venture capital fund
YEREVAN, September 8, /ARKA/. A joint Russian-Armenian venture capital fund, with participation of JSC Sitronics, a leading provider of telecommunications, information technology and microelectronic solutions in Russia and the CIS, with a growing presence in other emerging markets and the Armenian government, will come online before mid 2010, Bagrat Yengibarian, director of Enterprises Incubator Foundation (EIC), told today.
Speaking at a news conference he said the Armenian government in cooperation with World Bank and Sitronics is already developing a venture capital fund model.
He said the Armenian Small and Medium-Sized Businesses Support Center has been implementing already a similar project with the involvement of IT companies. He said the first contributions in the joint venture fund have been already made and the sides are now centered on organizational issues.
“Armenia has venture potential but there are no operating funds. It is evident that the government realizes the importance of venture capital, has found funds and is involved in the development of possible, most effective models and is drafting a legal framework,’ Bagrat Yengibarian said.
The joint venture capital fund, to be formally established either later this year or early next one, will have $30 million. To run its operations in Armenia Sitronics plans to found a subsidiary Sitronics АМ.
According to some estimates, if everything goes well, the fund may increase in two years up to $80-90 million. M.M. -0-
