Sistema PJSFC: Sistema launches start-up fund Sistema SmartTech

Sistema PJSFC (SSA) 
Sistema PJSFC: Sistema launches start-up fund Sistema SmartTech 
 
27-Feb-2020 / 10:00 MSK 
Dissemination of a Regulatory Announcement, transmitted by EQS Group. 
The issuer is solely responsible for the content of this announcement. 
 
            Sistema launches start-up fund Sistema SmartTech 
 
   Moscow, 27 February 2020 - Sistema PJSFC ("Sistema" or "the Corporation") 
       (LSE: SSA, MOEX: AFKS), a Russian publicly-traded diversified holding 
  company, announces the launch of Sistema SmartTech ("Sistema SmartTech" or 
  "the Fund"), a fund aimed at supporting early-stage and start-up companies 
                         from seed investment to Series A funding. 
 
      The Fund's target size is expected to be RUB 5bn, with up to RUB 1.5bn 
      investment from Sistema. In addition to Sistema, which shall act as an 
 anchor investor, the Fund will also include third-party investors, a number 
                of whom have already expressed an interest in participation. 
 
       The Fund will draw down commitments gradually as it approves specific 
 investment projects. These projects will be subject to a rigorous selection 
      process in order to ensure their compliance with the Fund's investment 
                    guidelines and applicable legal/regulatory requirements. 
 
        Sistema SmartTech will have a total lifespan of eight years, with an 
            investment period of five years. The Fund is expected to support 
  approximately 20 early-stage venture capital projects, with investments in 
                   each individual project ranging from RUB 50m to RUB 300m. 
 
       Sistema SmartTech will primarily invest in projects that have Russian 
   origin, operate in diverse sectors of the economy, and demonstrate upside 
     potential through the creation of new market niches. Preference will be 
   given to projects with strong prospects of a subsequent sale to strategic 
   investors for whom such projects can become an important element of their 
                         ecosystem. 
 
       The Fund will be managed by an experienced team of managers with deep 
 expertise in venture capital investments and a robust project pipeline. The 
 team will be led by Ksenia Shoigu, an experienced manager with an extensive 
      track record of successful project implementation. Artem Sirazutdinov, 
  Managing Partner of Sistema, will serve as Chairman of the Fund's Board of 
                         Directors. 
 
                 Artem Sirazutdinov, Managing Partner of Sistema, commented: 
 
        "Virtually all sectors of the economy are currently undergoing major 
technological changes. There is an ongoing process of technology replacement 
  and upgrade, the discovery of new attractive niches and even the formation 
        of entirely new industries. By supporting Russian entrepreneurs with 
     promising technology and product ideas, Sistema is striving to become a 
                        leader in technology innovation and transformation." 
 
                 Ksenia Shoigu, Managing Partner of Sistema SmartTech, said: 
 
     "With the transition to the Information Age, we are witnessing a global 
     technological shift that will impact almost all areas of everyday life. 
         Behind each technological change and innovation, there is always an 
    entrepreneur. One of the key objectives of the Fund is to seek out these 
        entrepreneurs and provide them with the resources and infrastructure 
        necessary for their development. It is also important to provide the 
  flexibility to allow these companies to integrate technologies in a timely 
 manner. In this regard, I believe that the Fund's central task is to become 
       a bridge between startups that offer solutions but lack experience in 
       implementation, and large companies that require these technologies." 
 
  Sistema SmartTech will join Sistema's family of funds, which also includes 
  Sistema Venture Capital (investments in growth-stage high-tech companies), 
Sistema Asia Fund (investments in high-tech companies in India and Southeast 
        Asia) and Rusnano Sistema SICAR (a joint fund of Sistema and Rusnano 
   established in 2016 for investments in growth-stage tech companies with a 
                         focus on Smart City projects). 
 
            *** 
 
      Sistema PJSFC is a Russian publicly-traded diversified holding company 
    serving over 150 million customers in the sectors of telecommunications, 
      high technology, banking, retail, timber processing, agriculture, real 
estate, tourism and healthcare. The company was founded in 1993. Its revenue 
   in 2018 reached RUB 773.9bn; its total assets equalled RUB 1.5tn as of 31 
    December 2018. Sistema's global depositary receipts are listed under the 
    "SSA" ticker on the London Stock Exchange. Sistema's ordinary shares are 
  listed under the "AFKS" ticker on the Moscow Exchange. Further information 
                         is available at www.sistema.com [1]. 
 
            *** 
 
       For further information, please visit www.sistema.com [1] or contact: 
 
               IR Service             Press Service 
 
         Nikolay Minashin Sergey Kopytov 
 
Phone: [phone] Phone: [phone] 
 
    [e-mail]        [e-mail] 
 
ISIN:          US48122U2042 
Category Code: MSCH 
TIDM:          SSA 
LEI Code:      213800JSZ2UUK4QQK694 
Sequence No.:  49206 
EQS News ID:   984803 
 
End of Announcement EQS News Service 
 
 
1: https://link.cockpit.eqs.com/cgi-bin/fncls.ssp?fn=redirect&url=f1efd490ef237092d4033512d119fe99&application_id=984803&site_id=vwd&application_name=news 
 

(END) Dow Jones Newswires

February 27, 2020 02:00 ET (07:00 GMT)