1. Grant Policy
Foundation for Development of the Center of
Research and Commercializing of New
Technologies
Moscow, 2011

2. 1. GENERAL PROVISIONS
The Grant Policy of the Foundation for Development of the Center of Research and Commercializing of New
Technologies (hereinafter – grant policy) is set to define the following terms and provisions:
- The terms of grant making for the applicants
- The criteria for selecting the abovementioned applicants and the requirements forthem
- The amount of provided financing depending on the stage and general purpose of the innovative project
- The guidelines for grant financing distribution between project types for the years 2011-2013.
The grant policy sets the guidelines for the Grant Committee of the Skolkovo Foundation. The Grant Committee,
in accordance with the Statute on the Grant Committee, has the right to overrule the grant policy. Specifically,
the financing of R&D projects will be held in accordance with approved budget and in compliance with a
separate regulating document.
2. TERMS AND DEFINITIONS
Skolkovo Foundation for Development of the Center of Research and Commercializing of
Foundation, New Technologies
Skolkovo
Innovative Project Project for research and/or commercializing of unique products and technologies
which have specific competitive advantages over international competitors.
Innovative Company Legal entity, which has obtained the status of the resident of the project for
development of the Skolkovo innovation center and which develops the innovative
project.
Research Activity Activity focused on research, development and commercializing new technologies
Priority Research 5 main fields of research, defined by the with Federal Law of Russian Federation of
Areas the September 28, 2010 No. 244-FZ "On the Skolkovo Innovation Center
(hereinafter referred to as the "Law")
- Energy Efficient Technologies (“Clean Tech”)
- Nuclear Technologies;
- Aerospace Technologies;
- Biomedical Technologies (“Biotech”);
- Information and Computer Technologies (“IT”).
Foresight List of priority fields of research within each of five priority research areas
Project Stage Stage in a project’s lifecycle, defined by certain characteristics, such as project
status, required financing amount etc. The classification of project stages is
supplied in Appendix 1.
Common Use Infrastructure Center, created by Skolkovo Foundation which provides the
Research Center Participants of Skolkovo with the access to research, laboratory and testing
equipment, and also renders research, development and testing services.
Key Members Of The Persons specified as Key Members of the Team in the documents, provided by the
Team Innovative Company.
3. TERMS AND PROCEDURES OF GRANT FINANCING
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3. Applicable The Foundation reviews the applications and provides financing in accordance with
Documents the following documents, available at the official website of the Foundation, www.i-
gorod.com
- Federal Law of Russian Federation of the September 28, 2010 No. 244-FZ "On
the Skolkovo Innovation Center
- The Charter of a non-profit organization Foundation for Development of the
Center of Research and Commercializing of New Technologies
- Statute on the Grant Committee of Skolkovo Foundation
- Regulation on Assigning and Termination of the Project Participant status for the
creation and maintenance of operations of the Skolkovo Innovation Center
- Regulation on expert boards of the Skolkovo Foundation
- Order on the approval of the application form for applicants for Project Participant
status for the creation and maintenance of operations of the Skolkovo Innovation
Center
- Regulation on Carrying out the Preliminary examination of projects
Financing Skolkovo Foundation provides financing to innovative projects in the form of non-
Mechanisms repayable non-dilutive grants to the Innovative Company. Skolkovo Foundation
intends to engage neither in equity financing nor in profit sharing mechanisms.
Co-financing Grant Financing is pre-conditioned on confirmed indication of interest in the project
Requirements from third parties and/or applicants, and their agreement to provide equity financing
to the Project, primarily in cash. Detailed co-financing requirements are set forth in
Appendix 1.
Financing Principles The Fund provides financing to the projects, which are aimed at research,
development and commercializing the results of research and development,
including applied research, development efforts, organizing pilot production,
launching sales, promoting innovative product/technology to the market.
The amount of financing provided depends on the current stage of the project.
The Skolkovo Foundation provides financing for the project to move from its current
stage to the following one.
The financing is provided in tranches. Each consecutive tranche is provided only
after the achievement (fulfillment) of certain measurable results (milestones) of the
project, specified in the Grant Agreement.
The Foundation provides grants for the statutory activity of the Innovative
Company, which should be carried out mainly by the full-time employees of the
Innovative Company. Should the expenses for third-party contractors amount to
more than 20% of the total project’s budget, a detailed explanation of such
expenses will be required.
The Foundation finances the purchase of expensive laboratory and/or
manufacturing equipment through creation of the common use research center,
which be accessible by every Innovative Company. Should the expenses for
purchase of equipment amount to more than 30% of the total project’s budget, a
detailed explanation of such expenses will be required.
The Foundation does not finance industrial production.
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4. Monitoring Of The The Foundation evaluates whether the milestones specified in the grant agreement
Financed Companies are met.
The Foundation Examines the reports of completion of the Project’s stages and
uses external experts and auditors to confirm the project’s competitiveness,
evaluate intermediate results and assure the proper use of funds.
4. PROJECT SELECTION CRITERIA
Industry Focus The Foundation finances only the projects’, industry specialization of which
corresponds with Foundation’s stated Foresights.
Project And Project The Foundation finances the projects, which meet the following criteria:
Initiator
Requirements - The required amount of financing, project stage and the amount of confirmed co-
financing commitments is in accordance with the Appendix 1 to the Grant Policy
- The Project is focused mostly on the global market
- The Company possesses or plans to possess all of the intellectual property
required for commercializing the product/technology of the Project on its key
markets without breaking third parties’ patent rights.
- The Company has long-term incentives in place for the Key Members (equity,
licensing agreements ets.)
- Neither Key Members, nor the Project Initiator, nor the investor, nor their
beneficiaries, were held liable for economic crimes
5. INFORMATION DISCLOSURE
Information regarding approved projects, as well as regarding approved amounts of financing is published at the
Skolkovo Foundation official website www.i-gorod.com
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5. Appendix 1
Classification of projects by stages and amounts of grant financing
The Purpose Of Required
Distinct % Of
Financing And The Grant Project Success
Project Stage Characteristics Of The External
Expected Results Of Amounts Factors
Project Stage Financing
Financing
- Development of business
- The idea is formulated,
plan
however there is no
- Development of investment
business plan or - Ambitious team with
memorandum, incl. that for the
research program entrepreneurial ability
purpose of obtaining Skolkovo
Pre-Seed
Grant*** Not
Stage - The team with Under $50k - Potential for
- Preliminary research applicable
(Stage 0)** applicable experience commercializing in the
- Investor search
and education is domestic (at first) and
- Trainings, consultant
assembled at least global (later) markets.
services
partially
- Access to common use
center
IT: Building a working
- All of the above
prototype, detailed
specification, system
- All of the above - Distinct competitive
architecture
advantages
- First results of the
NT: Completing research,
research - Amount of Russian
Seed Stage creating a technical project Not less
Under $1m market from $300 m,
(Stage 1) than 25%
- Research program, amount of global market
BMT: roof-of-concept***
business plan, strategy from $1 bn.
of managing intellectual
EE: creating pilot device
property rights - Ability to achieve $50m
in sales or $100m in
ST: Concluding early
capitalization in 5 years
research, creating prototype
IT: creating alpha version,
concluding research (for
H&S****), pilot application
- All of the above - All of the above
ST, NT, EE: creating
Early Stage Not less
experimental product Under $5m
(Stage 2) - Results of Stage 1 than 50% - Co-investor with
achieved relevant experience
BMT: pre-clinical and first
stages of clinical experiments,
conclusion of R&D (for
industrial biotech.)
IT: releasing beta version ,
concluding development (for
H&S), launching sales
- All of the above - All of the above
BMT: final stages of clinical
tests, pilot application and/or
Advanced - Results of Stage 2 Not less - Prospects for the
production (for industrial
Stage achieved Under $10m than success at the global
biotech)
(Stage 3) 75%***** markets (ability to reach
- CEO with international capitalization of $1bn in
NT, EE: Pilot application,
experience 5 years)
experimental production
ST: Concluding development,
approbation, implementation
Abbreviations: NT – Nuclear Technologies, EE –Energy Efficiency, IT – Information Technologies, BMT – biomedical technologies, ST –
space technologies
* % from total project budget. In case of non-compliance the Project initiator and the responsible Foundation employees should provide
detailed basis for financing the project on these conditions.
** Stage 0 financing decision is made by the Head of the Cluster, financing of all the subsequent stages due for approval by the Grant
Committee
*** Grant for developing a package of investment documents is applicable for any stage. Co-financing clauses do not apply unless the
stated grant exceeds 1,5m
**** proof-of-concept – first experimental proof of the viability of Project’s technology, method, principle etc.
***** Hardware&Software suites
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6. ****** BMT and NT projects are required to secure external financing of at least 50%
Applendix 2
Distribution of financing by project stages for the years 2011-2013 гг.
% Of Budget
Project Stage
2011 2012 2013 2014
Pre-Seed Stage
3-5% 5% 5% 5%
(Stage 0)
Seed Stage (Stage 1) 20-22% 20% 20% 20%
Early Stage
50% 55% 60% 65%
(Stage 2)
Advanced Stage
25% 20% 15% 10%
(Stage 3)
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