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Cisco Announces Investment in Venture Capital Fund to Focus on Russia and CIS
Almaz Capital Russia Fund I, L.P. to Support Tech and Communications Start-Ups
| Source: Cisco Systems, Inc.
SAN JOSE, CA--(Marketwire - July 2, 2008) - Cisco (NASDAQ : CSCO ) today furthered its
strategy of investment in the Russian technology industry with the
announcement of an anchor investment in a venture capital fund that will
focus on Russia and the Commonwealth of Independent States (CIS). In
collaboration with Almaz Capital Partners, Cisco has made the anchor
investment in Almaz Capital Russia Fund I, L.P. (to be informally called
'Almaz Capital / Cisco Fund I'), which has initially closed at $60 million.
Almaz Capital Partners will seek investment opportunities and manage the
fund's investments. The target companies for the fund primarily include
high-growth small and medium-sized companies in the technology, media, and
telecommunications sectors. Cisco will pursue investment opportunities in
technology-related start-ups in the region, both directly as well as
indirectly through this regional venture fund.
"Today's announcement underscores Cisco's recognition of the innovation and
potential that the Russia technology market offers," said Paul Mountford,
president of Emerging Markets for Cisco. "As part of its globalisation
strategy, Cisco's intention is to strengthen links to key centers of
innovation. The growing number of start-ups originating from the region is
reflective of the growing importance of the technology sector to Russia's
continued socio-economic development and competitiveness."
Cisco's Corporate Development organization helps the company to identify
and capture market disruptions and anticipate trends around the world, and
to provide a competitive advantage through early investments in burgeoning
technologies. The group's objectives align closely with Cisco's corporate
globalization strategy, which addresses the world's shifting boundaries and
intensifying competition worldwide.
"Investing in best-in-class venture teams, such as Almaz Capital Partners
in Russia, is an example of how Cisco maintains leadership in global
markets in transition," said Hilton Romanski, vice president of Global
Corporate Development for Cisco. "The potential for technology innovation
arising from Russia is tremendous. Our objective is to help catalyze and
accelerate that potential into action that will have a positive impact on
the Russian and global marketplaces."
Cisco has already announced key direct investment commitments to the
Russian market, including a stake last year in Ozon, the leading Russian
online retailer.
"Russia is unique relative to other emerging venture capital markets, in
that it offers both innovation and market opportunities. Like Israel,
Russia has tremendous technology and innovation potential, and similar to
China and India, it has a large and fast growing enterprise and consumer
market," said Peter Loukianoff, managing partner of Almaz Capital Partners.
"Russia has a growing community of savvy entrepreneurs that are building
companies based on both innovative technologies for global markets and
proven business models for the internal Russian/CIS market."
Overall, Cisco currently has more than $2 billion in venture capital
investments under management and has been an active equity investor in
major markets such as China, India, Israel and Europe, in addition to the
United States. Through a combination of direct and indirect funding
vehicles, Cisco is a strategic investor in start-ups and venture funds
around the world and focuses on finding and investing in companies that
have innovative technologies and business models.
Yoav Samet, head of Cisco's Corporate Development for Israel, Central and
Eastern Europe, and Russia/CIS, will lead the initiative announced today.
About Almaz Capital Partners
Almaz Capital Partners is a venture capital firm that invests in
Russian-related technology, media, and communications companies. The firm
has offices in Silicon Valley and Moscow. Additional information about
Almaz Capital Partners can be found at http://www.almazcapital.com.
About Cisco Systems
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how people connect, communicate and collaborate. Information about Cisco
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Cisco and any other company. This document is Cisco Public Information.