US-based venture capital firms have joined interest from strategic investors Cisco and Nokia in providing initial support for the creation of a Russian ‘Silicon Valley’ based outside Moscow.

California-based Silicon Valley is home to many of the world’s largest independent VC funds and Russia has promised "unprecedented privileges" to the creation of its own version in Skolkovo.

Dmitry Medvedev, Russia’s President, met with US VCs Drew Guff, a co-founder of New York-based Siguler Guff, and David Kronfeld, chairman of Chicago-based JK&B Capital, on 25 May after announcing the scheme earlier this year.

Reported by news provider Bloomberg Businessweek, Medvedev said: "The venture capital market in Russia is poorly developed.

"Twenty funds are operating in the country with a volume of about $2bn. That’s almost nothing. And we’d like to do whatever we can to facilitate the development of this business."

Medvedev in March asked Ukrainian billionaire Viktor Vekselberg, owner…

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