A project worth $2.5 million to institutionalize venture capital financing will be launched in Belarus soon, BelTA learned from Matthew Sumpter, USAID Country Director for Belarus, on 16 November.

According to the source, the project relies on a broad definition of venture capital financing. Plans have been made to promote the world's best practices of regulating and using venture capital financing in addition to raising the awareness about the main risks. Plans have been made to establish professional exchange with colleagues and provide assistance with developing the local society of venture investors and establishing a local or regional venture fund, conditions permitting. Apart from that, there are plans to assist startups with finding local and foreign venture investors.

Matthew Sumpter said: “The project will not create an effective market of venture capital financing in one day. The government and private entities will have to put an extra effort into it. We are ready to walk the way together.”

The project will be implemented by the BelBiz group of companies in association with partners. The project was presented as part of the Global Entrepreneurship Week, which is scheduled to take place in Belarus on 14-20 November with assistance of the Belarusian Economy Ministry and OAO Development Bank of the Republic of Belarus (DBRB).

Venture capital financing is understood as long-term (5-7 years) high-risk private investments in the charter capital of new small high-tech companies with a lot of promise or venture companies that have already established a reputation. Such companies focus on developing and manufacturing science-intensive products. The investments are supposed to fuel the development and expansion of such companies with a view to reaping benefits from the growing value of such investments.