This paper analyzes the approaches taken by the Russian government to promote innovation in the biotechnology sector within the country. Russia is economically strong, currently with a trade surplus, and the country is investing broadly in initiatives that have resulted in in-bound technology transfer, as well as an expansion of the private sector. These initiatives include government venture capital and investment funds, as well as physical technology “incubator” centers. The result has been an increase in the number of clinical-stage biotechnology companies operating in Russia, as well as an increase in the number of pharmaceutical candidates undergoing trials in the country. The biotechnology “boom” has also resulted in an increase in the number of early-stage companies. This paper investigates current deal and investment trends from the funds that are the principal supporters of biotechnology companies in Russia.