VC Firm Index Ventures Halts Russian Startup Investments

(Bloomberg) -- Index Ventures will stop investing in Russian companies indefinitely, signaling that the corporate boycott over the war in Ukraine is extending to venture capital.

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In addition, the firm will not do deals alongside investors linked to the Kremlin, Index said in a statement Monday. None of the firm’s funds contain money from Russian investors, and Index committed to maintain that dynamic for future funds.

Index Ventures, whose portfolio includes companies like Discord Inc., Dropbox Inc. and Slack, joins a growing list of businesses that have reduced operations or sales in Russia following the invasion of Ukraine.

Index, which has offices in San Francisco, London and Geneva, has invested in companies around the world, including Ozon Holdings Ltd., a Russian e-commerce company. Index said Monday that it will support companies in its portfolio that move their teams out of Russia.

“As far as Russia is concerned, we are taking steps beyond simply complying with all international sanctions,” Index said in its statement. “We believe it is necessary to cut off resources that would in any way support Russian state institutions, its regime-controlled media and its financial system.”

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