Three quarters of Russian venture capital

The venture capital market has demonstrated growing investment activity

RAVI Press Service

A presentation of the review of the direct and venture capital investment market for 9 months of 2016, prepared by RAVI with the support of RVC and VIF, took place in Sochi. Most indicators of investment activity allow us to predict positive results of the year.

"Market overview. Direct and venture investments for 9 months of 2016" was presented at the special session "Venture Market: results of the year and future trends" within the framework of the Forum "Ecosystem of Innovations", which takes place in Sochi on December 5 and 6.

According to the data presented, it is safe to say that the venture capital market holds its positions, demonstrating investment activity that can surpass the level of 2015. During the three quarters of 2016, 145 transactions were carried out, and the total amount of invested capital amounted to $ 105 million (74% and 71% of the 2015 level, respectively).

The venture capital market continues to actively attract new players: in the three quarters of 2016, 13 new venture funds were registered – this is only a third lower than in the previous year. The share of funds with state participation that entered the market this year has radically decreased compared to 2014 and 2015: this year, 12 out of 13 new funds are private.

The activity of venture investors to exit previously invested companies was noted at a fairly high level – 85% of the 2015 level (29 exits versus 34 in 2015). In many ways, this is the result of the groundwork of previous years: funds with the participation of state capital provided 65% of the total number of exits with the participation of venture funds in the reporting period (44% in 2015). This reflects the role of the state as a catalyst for "massive" venture investments in Russia in 2006-2010.

If the situation on the venture capital market looks relatively good, then the private equity sector shows negative dynamics: at the end of 9 months, the number of investments barely exceeded 30% of the 2015 figures, and the volume of investments amounted to only 45%. There are still sectoral imbalances in the distribution of venture investments. The main interest of venture investors has traditionally been concentrated in the ICT sector – about 74% of the total number and 77% of the total investment. More than half of investments in industries outside the ICT sector were made by funds with the participation of state capital.

"Negative trends are not prevailing and even more so determining indicators of the state of the market. They can be attributed rather to the objective costs of the economic situation and be considered as starting points for the formation of new trends that correct the vector of market development," she commented Albina Nikkonen, Executive Director of RAVI.

"In general, the state of the market inspires moderate optimism. This is noted by both analysts and practicing investors. The return to the stability that the market has achieved after the decline in indicators for previous years of economic turbulence, allows us to hope for its growth in the foreseeable future," he concluded Evgeny Kuznetsov, Acting General Director of RVC.

The text of the review can be downloaded from the link.

Portal "Eternal youth" http://vechnayamolodost.ru  13.12.2016