Nizhny and Moscow partners set up hardware 2.0 accelerator fund in mid-Volga | Volga, Finance, business

Volga | Finance, business

Nizhny and Moscow partners set up hardware 2.0 accelerator fund in mid-Volga

27 Mar '15
Nizhny Novgorod-based investment company Open Innovations, the RVC Seed Fund and DI Group, another Russian company, have set up a new $575k venture accelerator fund in Nizhny Novgorod, reported.

The RVC Seed fund, established by RVC, Russia’s fund of funds for innovation, contributed the lion’s share of the initial investment, $430,000, and has plans to increase its share to as much as $1.3m by the end of this year. The other two partners kicked in about $72,500 each; and Open Innovations reportedly hopes to add another $360,000 to its current contribution by the end of 2015.

According to Open Innovations, the accelerator fund is designed to support at least ten domestic developers of hardware 2.0 projects. The project has a high-profile international partner; HaxAsia is a well-known Singapore-based hardware 2.0 start-up accelerator.

One project can receive as much as $138k in investment. Eligible for support are only Russian companies or companies that are ready to relocate to Russia, which have an innovative hardware solution and its operational prototype.

Portfolio companies will be ushered into a rigorous six-month acceleration program, during which each of the trainees will be expected to have a marketing plan and industrial design all ready and polished up, and also to launch a phase one crowdfunding effort.

The final leg will be participation in HaxAsia’s Moscow-based acceleration program. The best and brightest will be invited to take part in HaxAsia’s mainstream program in Singapore and the United States to then find a contractual producer and raise the next stage of funding from international investors.

“We’re positive that it’s exactly in the field of hardware 2.0 that Russian developers can have a leadership position globally,” said Maksim Osokin, the CEO of Open Innovations.