The venture investment market in Russia has decreased for 9 months

The venture investment market in Russia has decreased for 9 months


During the reporting period in Russia was made 241 venture capital deals amounting to 33.9 billion rubles. The most popular segments of the Internet-technologies, information-telecommunication systems and software.

MOSCOW, 16 Dec. Volume of the Russian market of venture investments decreased in the first nine months of the current year by 25%, while the world grew by 61%, and their total volume amounted to slightly less than 100 billion dollars (98,5 billion), according to a joint survey of the development Fund Internet of initiatives (DFII) and claudineoltremari platform StartTrack.

Venture capital investment — investment in promising type of business, such as a start-up that is usually connected with high risks. Is investing in a new project, the owners of which is the author of innovative ideas, but they don’t have sufficient funds for its implementation. The owner of capital, by investing in a project automatically becomes its owner.

The world market of venture projects is sufficiently developed, its volume reaches USD 100 billion per year, noted during the presentation of the report of General Director StartTrack Konstantin Shabalin. The Russian market, he said, is still in the development stage because there are less than ten years. Currently, almost half of the volume of the venture capital market is the USA, and the most rapid growth, Asia has.

The Russian market

By estimates of authors of the document, in Russia for the first nine months of 2015 was made 241 venture capital deals amounting to 33.9 billion rubles. The most popular segments by number of deals Internet-technology (55%), information and telecommunication systems (11%) and software (11%). Another 7% was invested in the industry of financial technology.

At the same time during the reporting period, the volume of the Russian market of venture investments has decreased by 25% compared to the same period in 2014. “The decline in investment activity due primarily to a decrease in the number of transactions of late stages (-57%), and also by reduced investment activity in the later stages of development of projects”, — said Shabalin.

According to him, it is caused by both macroeconomic uncertainty and the change of geographical focus the majority of investment funds of the Russian Federation due to the increased investment risk. “It is not surprising that the Internet-the market repeats the General dynamics of technology market — a reduction in the number of transactions in the later stages and growth of early stage deals,” he adds.

Director of strategy FRÍA Dmitry Pavlyuchenko does not exclude that in 2016 potential growth projects in the later stages of development due to the current activity of investors, as well as changes in the corporate legislation on the initiative FRÍA, bringing you a powerful and flexible structuring of investment transactions and operating companies in Russia.

Global trends

The global venture capital market the first nine months showed strong growth and increased by 61% compared to the same period in 2014. The volume of investments amounted to 98.5 billion dollars, and exceeded that in 2014, when the company was invested to 88.7 billion. In addition, in 2015, the tendency of growth of transactions in the later stages (transaction volume of $ 100 million and above) and the growth of the average purchase transaction.

Demonstrate the dynamic development of Asian markets, ahead in 2015 Europe. Share in the online segment increased to 14% in the first nine months of this year from 7.9% in 2012. China and India account for more than half of all transactions. If in 2014 the number of trades was roughly equal between China and India, in the first nine months of 2015 in India was signed by 89% more deals than in China.

In Asia there was a significant increase in average deal volume. During the reporting period, the growth of venture capital market in the Asian region amounted to 142%, their total volume amounted to 28.3 billion dollars.

In the Asian region, according to CB Insights, which are listed in the study for nine months, 79% of all investment went into the sector of Internet and information and telecommunications/mobile technologies (ICTs). For comparison, in the US the sector accounts for 62% in the European region — 65%.

The market volume in the U.S. rose during the reporting period by 34% and reached 47.2 billion dollars. The study authors also note that the share of start-UPS and attracted investments from Silicon valley prevailed over all deals of the Internet market. 70% of all trades of the Internet segment fall on North America, where Silicon valley is 30% of Internet transactions in the USA and 20% worldwide.

In European countries there is an unstable dynamics of trades. In General their volume for the first nine months grew 15%, to 9.8 billion dollars. At the same time, the number of transactions has steadily decreased since the beginning of the year, on average, by 3% in the quarter.