Technology, Business and Capital: Evgeny Borisov on the necessary regulatory tools for the Russian PE&VC market

The State Duma hosted a round table of the LDPR faction ‘Legislative Aspects of the Integration of Technology, Business and Capital’, which was dedicated to discussion, development of proposals and regulatory initiatives to support high-tech business and investment in Russian DeepTech companies.

As the roundtable speaker, KAMA FLOW partner Evgeny Borisov outlined the key factors necessary for the accelerated development and support of technology entrepreneurship - the formation of a competitive domestic professional investment market with appropriate legal regulation of its participants: ‘We see the need to develop regulatory tools that will increase confidence in the activities of professional investors and make the market more transparent. One of the possible solutions could be mandatory licensing or certification of management companies working with private equity and venture capital funds, including investment funds within DITs. Such a system should include strict requirements for the qualifications of managers and transparency of fund operations. Verification of compliance with the established standards of professional activity and availability of the necessary experience will help protect the market from unqualified managers’.

Evgeny noted that comprehensive and balanced regulation of the professional investment market, combining licensing or certification of management companies, creation of SROs, introduction of tax incentives not only for private investors and business angels, but also for other professional investors managing DITs and ZPIFs, is a necessary condition for further development of VC&PE industry in Russia.