US-listed software company Microsoft will open a development centre in Skolkovo, a region in Russia to house technology companies and venture capital firms.
Steve Ballmer, chief executive of Microsoft, signed the agreement to support local start-ups in virtual software at The Third International Forum on Nanotechnology (Rusnanotech 2010).
Nikolai Pryanishnikov head of Microsoft in Russia, told local news provider Pravda: "Amounts will vary, but generally, the projects at such stages receive from $50,000 to $500,000."
Dan’l Lewin, vice-president for strategic and emerging business development at Microsoft, said by email: "We [Microsoft] are not taking equity in Russian start-ups – we are building a syndicate of others and providing some capital as part of the process."
Viktor Vekselberg, head of the Skolkovo project, which aims to replicate the success of America’s Silicon Valley in Russia, said there were plans to sign additional agreements with Nokia and Intel, and ongoing talks with Google, Siemens, Boeing and Cisco.
Rusnano, the $5bn Russian state fund for nanotechnology, at the same event said it would set up 10 funds in Russia managed by foreign venture capital firms.