PHLburg Technologies, Inc.

Western Investors to Pay for Russian Brainpower

March 22, 2005

By Ksenia Ranchina
Delovoy Peterburg (Business St. Petersburg)

St. Petersburg. PHLburg Technologies, Mirantis and Landbridge Capital (USA) are setting up a venture foundation with an initial capital of $1.5 mln. in St. Petersburg. The venture foundation announced by  PHLburg Technologies plans to provide enough capital to enable two or three start-up companies to grow from scratch to the level of a medium-sized business capable of attracting direct investments.

According to PHLburg President Neil B. Godick, the key problem of selecting investment targets is the absence of a consolidated database for grant seekers.
"It is my guess that Western investors now believe that the Russian Government earnestly intends to promote the developments in science and engineering”, says Anton Konkin, Imageland RC North West Agency project manage. As demonstrated by international experience, it is venture capital that at this stage must become the economic tool to promote innovation development".

According to Valentin Levitsky, acting director of Russian Technology Fund, "Western investors invest in all Russian venture foundations and they are all in great demand. There is no competition on that market – there are still too few venture foundations".

This article was originally published in Delovoy Peterburg,