Micro-investment fund
In 2009, within the scope of the LETA Group Investment & Venture development, the Venture Fund for investing into promising Russian software developments was established. The aim of the project is to support development and launching of high quality software for a wide range of customers.
The fund finances small native companies and individuals which are able to develop such software but suffer the lack of required resources.
Investments are divided into three directions. The developer gets the part of resources required for development of the product. The part of investments is for development of modern interface and documentation, testing, rendering the product marketable, etc. Finally, there are investments into the product marketing and promotion. After signing the proper agreement with the developer, LETA Group will be granted certain rights for the investment object.
Three stages of the fund activities:
— the first stage: the LETA Group Investment & Venture team collects and analyses the developers’ applications, including the description of software products;
— the second stage: the unpromising applications are rejected and statements for assessment of their market potential and required improvement with respect to certain projects are submitted to Expert Council of the LETA Group Investment & Venture division. The short list is formed on the base of the data received.
— the third stage: the projects and companies included in the short-list follow the due diligence procedure to assess risks related to investments to a certain product. As a result, a final product pool is formed, and LETA Group will invest to these products depending on the software type and level of its technical readiness to be launched.
