With a target size of $100m, the Russian-Kazakhsran Nanotechnology Venture Fund its target projects focused on nanotechnology and the use of nanoindustry products in the two regions.

The fund's two anchor investors, Russian nanotech company RUSNANO and Kazyna Capital Management, are to contribute $25m each to the fund, with the remainder expected to come from private investors.I2BF managing partner Ilya Golubovich noted that co-management of a venture fund was an unusual step, but claimed that the the firm could work productively alongside VTB Capital.

He said,"Joint management of the venture fund is a unique approach in venture business. We are confidant, however, that our cooperation will be successful. The 12BF team has worked for a long time in Western venture investment markets, monitoring their needs and developing the most farsighted company.

"We are prepared to bring the global expertise of I2BF to Russia, where we already see a host of technologies for which there is demand in world markets," he added.

Kazyna Capital Management is a subsidiary of Samruk-Kazyna, officially known as the National Welfare Fund, a Kazakh state-owned entity which owns many of the country's key assets, including the rail and postal services. Tasked with attracting investment to Kazakhstan, Kazyna Capital has holdings in eight investment funds focused on the country, and manages assets of $1.5bn.

In April, I2BF launched its second cleantech venture fund, with a target of $100m.