More than 50% of venture market in Russia in 2015 accounted for one deal


Total volume of deals in the venture ecosystem in Russia in 2015 has increased year-on-year by 31% to $2.19 billion, the study “Money Tree: venture market Navigator” conducted by the Center for technology and innovation and Russian venture company (RVC). According to the survey, more than half of the specified amount was made on one transaction — the investors from the largest Russian online classified site Avito. For $1.2 billion in October of 2015 South African media holding Naspers bought out the entire share funds, Kinnevik, Northzone, Accel, and partially Fund Baring Vostok and the founders of Avito Jonas Nordlander and Filip Engelbert. After the transaction, Naspers owns 67,5% of Avito, the whole service was valued at $2.7 billion

The aggregate amount of other venture capital transactions in 2015 amounted to $990 million, according to PwC and RVC. The largest of them — out Fund Oppenheimer Funds from “Yandex” ($190 million) and the sale by the Fund of Sergey Adonyev and albert Avdolyan Telconet stake in Yota Devices ($100 million; the deal is still not concluded), and the investment of $100 million pool of investors led by Intel’s software developer Mirantis and investment Alisher Usmanov in Russia’s largest eSports-Virtus community.pro ($100 million).

Excluding transactions of value above $100 million venture capital market dropped immediately to 52% compared with the end of 2014 and amounted to us $232,6 million, lead the assessment of the study’s authors. In this case, PwC and RVC has averaged 180 medium-sized deals, which is 21% more than 2014. More than 40% of transactions in 2015 were concluded at an early stage (77 pieces), and the average deal size has more than halved — from $3.3 million to $1.5 million, specified in the report. The most attractive for VC investments remains a sector — in this sector took place 97 deals. For comparison, 39 deals were concluded in the field of biotechnology, 15 in industrial technology, and provides data in the study.

On the Russian venture capital market last year was issued 6074 grant in the amount of $178.2 million, Most of them gave the Bortnik Foundation (5792 grant for $155,4 million) and the Fund “SKOLKOVO” (256 $21.3 mln), specified in the report. Funds with state participation in General has increased in the past year: the number of transactions with their participation increased by 188%, although they still constitute a small part of the market — 12%, estimated by experts of PwC and RVC.

Such large and strategic transactions, as the investors ‘ exit from Avito, useful for the market, but they also indicate that Russia has sold the consumer market, and production technology, says managing partner of GVA of the Foundation Vestor.in Pavel Cherkashin.

The report of PwC and RVC showed that the venture market in Russia is not just stagnated, and capital “blown away”, says the managing Director of the Fund Prostor Capital Alexey Soloviev. According to him, over the past two years, the market has fallen almost three times. “Investors are cautious — they invest in small amounts and not in new projects: the focus of funding has shifted to more Mature projects,” — said Solovyov. The report did not include transactions of the development Fund of Internet initiatives (FRII), although they are unlikely to have radically changed the overall balance, he concludes.

The Russian venture market remains far from us, which in 2015 reached $58.8 billion Such data are contained in the Money Tree report on venture capital market in the U.S., which was prepared by PwC in collaboration with the National Venture Capital Association (NVCA) based on data from Thomson Reuters. In 2015 PwC analysts averaged 74 “mega-deals” (investments of over $100 million), in 2014 there were 50.