St. Pete government fund unveils successful IT project exit
14 Dec '16
The St. Petersburg Pre-Seed Fund announced a successful exit from Freshoffice, a five-year-old Russian company developing cloud-based web solutions that bring together on a single platform all the tools deemed necessary to do small or medium-sized business, portal Firrma.ru reported, citing Freshoffice founder and CEO Igor Sugnach.
What the terms of the exit were and who bought the fund’s share has yet to be specified. The participants only announced that the deal was closed in November 2016.
Back in 2011 the government fund invested $150,000+ in Freshoffice in exchange for a 25% stake in what at that time was little more than an idea, Mr. Sugnach said. Today, the company has offices in St. Petersburg, Moscow and Singapore and a purported client base of more than 50,000 users.
Earlier this year the St. Petersburg Pre-Seed Fund was rearranged into the St. Petersburg Industry Development Fund with a new focus on industrial tech projects. Now the reorganized fund offers $770K-1.5m loans for up to five years at a 5% interest rate in an effort to encourage PE funds to invest in the real economy. The fund management is reportedly shooting for at least an 11% profit on each of the planned exits from all the projects the fund bought into earlier.