Russian Venture Capital Market
There are more investments in 2014, but the forecast is not optimistic
MarchmontRMG Partners– a Russian independent investment company, in cooperation with East–West Digital News, the first international information company covering the innovative sector of the Russian economy, has published an overview of the Russian venture capital market for 2014.The authors provided Marchmont with the full version of the review.
According to this in-depth study, last year Russian venture projects attracted $788 million in 465 transactions. Over 70% of all investments were received in projects related to the IT industry and e-commerce. Here are brief excerpts from the report:
"2014 was the last year when investors in the Russian venture capital market showed any noticeable optimism regarding investments in domestic startups. Two dozen active funds in the first few months of 2014 were able to generate positive dynamics of transactions in software, media and transactional projects, but after the summer the market began to shrink ... During this period, the number of cross-border transactions almost equaled the number of "home" investments ... After December, amid the turbulence of the Russian economy, the Russian venture capital market began an active outflow from countries of investors who prefer to work in more stable markets in Western Europe, Israel, Southeast Asia and Latin America… Most of the transactions occurred in the first quarter, when the factors of geopolitical tension and a new wave of crisis expectations have not yet fully manifested themselves.
The volume of venture investments in 2014 due to the successful first quarter was significantly higher than a year earlier. In 2013, the total volume of venture capital investments amounted to $ 399 million, that is, over the past year, this figure has doubled. Nevertheless, looking at the last three quarters of 2014, the dynamics cannot be called optimistic in any way…
The decline in recent quarters occurred entirely against the background of macroeconomic and political uncertainty. Investors either took a wait-and-see attitude, or became even more circumspect and cautious." According to RMG, the main investor, as in previous years, remained the private sector: business angels and private funds invested about $ 434 million in venture projects (at various stages of implementation).
Portal "Eternal youth" http://vechnayamolodost.ru14.05.2015