Nizhny Novgorod Entrepreneurship Group Hosts Event on Raising Capital
The Nizhny Novgorod Entrepreneurship Group is an ongoing forum for entrepreneurs, top managers of growth companies, and investors. Raising Capital was the subject of this business breakfast sponsored by the Center for Entrepreneurship and OPORA Rossii at the Russky Lev restaurant on November 4, 2004. The Center for Entrepreneurship was initiated by the U.S. Russia Investment Fund, which recently celebrated its tenth year. The Fund invests in growth-oriented companies for periods of three to five years and has invested over $300 million. “At the end of the day, any investment is made in people, not companies - no matter how remarkable they may be,” stated Victor Sedov, Executive Director of the Center for Entrepreneurship. At the workshop, the investment sector was represented by Quadriga Capital. Quadriga is interested in companies with good reputations in high-growth and technology industries. The fund’s Director, Kendrik White, spoke about principles of private equity financing, investment criteria, and stages of the investment process. He also let entrepreneurs know that they can apply for investment directly or via consultants. White noted Quadriga’s investment in Nizhpharm as an example of a successful deal. “When the investment was made, the company was rated seventeenth. Now, it ranks third and is a company with a transparent accounting system.” The service sector was represented by Konstantin Gubin of the Russian-British company Rbpartners, who described how a professional service provider can help companies looking for investments. He spoke in detail about the difference between due diligence and the audit, with the goal of an audit being to confirm the reliability of the accounting and financial data, and due diligence in trying to understand and evaluate the business. “At the end of the day, due diligence is about understanding if the business in question is indeed what the owners claim it is,” said Gubin in conclusion.
Key Organizations and Insights
Quadriga Capital is a private equity firm that invests in midsize growth companies. The firm focuses on sectors such as industrials, healthcare, and consumer products. Quadriga Capital aims to support the long-term development of its portfolio companies through strategic advice and partnerships. Rbpartners is a service provider that offers a range of consultancy services including financial advisory, business restructuring, and strategic planning. They help businesses navigate complex investment processes and ensure compliance with international standards. The Nizhny Novgorod Entrepreneurship Group plays a critical role in fostering dialogue between entrepreneurs and investors, promoting growth through shared experiences and expert insights. The Center for Entrepreneurship continues to promote entrepreneurship by sponsoring events and providing resources for business growth, aiming to address the professional manager shortage in the investment landscape.