What should be done to enhance investment in hi-tech projects?

Paul Germanovich, what is the reason that venture capital investments are not often high-tech, but as a rule are simply a special case of conventional direct investment, mainly in high-risk projects? How can we enhance the process of investing it in hi-tech?

There is terminological confusion in the definitions of direct and venture investments. In terms of forms, methods and facilities investment, direct private investments are just as “risky” and how “venture capital” if The latter refers to investments in technology companies at an early stage of development. If we accept this distinction venture investment as a given, the question should be reworded to read: “Why is Russia today does not invest in high-tech private companies to the extent and in the amounts that would be like?” (Incidentally, this raises yet another important question: what do we want something? “We have many needs of these investments? 10? 20? 100 million?” In a year, a month?)

Similarly, the question of “activation innvestitsy” in hi-tech. Why? If we are talking about the ad, it is necessary, above all, public authorities (eg Ministry of Science), therefore, the question should be put thus: that the Ministry of Science makes for increased investment in hi-tech? (Ministry of Science makes a lot for this, by the way).

If we are talking about private sources, must ask the question: Why is private capital in general need? Investing in high-tech small firms procedurally troublesome and ambiguous in terms of outcome. If we use the well-known in financial management dilemma of choosing the most suitable investment project, should recognize that investments in traditional industries are more attractive in terms of timing and magnitude of return on invested capital. Not to mention the fact that more predictable. What should be done to enhance investment in hi-tech projects? The answer is obvious: it is necessary that these projects were:

a) of Advanced profitable than traditional industries;
b) possess a greater degree prosmatrivaemosti in the future. (The ability to predict rates of return here – all-important figure. Even the term is not so important).

Another question – how to ensure compliance with this condition? The answer is also on the surface – you need to market demand for products / services to high-tech companies would provide a high increase in sales volume, which will draw to a rise in profit, free cash balance and market capitalization. While this condition is not complied with the volume of investments in high-tech companies will continue to remain at low levels, satisfying neither the State nor the entrepreneurs in this sector.

Paul Gulkin