The VC Market in Russia
Russia is a big player in the funding of Venture Capital today. Country to country we see VC markets fluctuating up and down in this recession that has hit each of our homes one way or another. Efraim Landa watches these trends closely, leading those who need business financing to the right private equity funding. Russia isn’t having many problems as shown in recent times. In 2006, the Russian government established Russian Venture Company (RVC) to stimulate the creation of a domestic VC investment industry and increased venture funding in Russia. In the beginning RVC’s capital was about 30 billion rubles. In 2011, everything changed. There was a large shift because of the recent focus of Russia’s state development activity, and substantial growth in the number of entrepreneur support programs. On top of all of this, there was much focus on building of incubators, accelerators and technology parks. This growth in Russia leads to an increase of new start-ups. New start-ups need funding, Existing and new venture market firms came out of the word work through this movement.
So, who are the top investors in Russia? Where should you turn if you’re looking for VC funding as a start up in Russia?
Top VC Companies in Russia:
- ABRT Venture Fund – popular companies they invested in are HomeMe.ru, StarWind Software, Acronis, InvisibleCRM, OKtoGO, Automated QA
- Baring Vostok Capital Partners (BVCP) – popular companies they invested in are Golden Telecom, Yandex, Burron Energy, Caspian Gas Corporation, First Collection Bureau, Europlan, Kaspi Bank, Ozon.ru,
- Mangrove Capital Partners – popular companies they invested in are Style Tread, Skype, Bestylish.com. Wix.com, OpenX, Clickon,
- Intel Capital – popular companies they invested in are AVG, Jeeran, Shoo Fee TV, Rock Flow Dynamics
- Insight Venture Partners – popular companies they invested in are B2B Center, Smart Bear, Parallels, Micex, Studio Moderna
- E.ventures – popular companies they invested in are Pin Me, Teamo, Merchantry, Sapato, darberry
- Runa Capital – popular companies they invested in are Talkbits, Metabar, Travel Meny, ThinkGrid, Stop the Hacker
- ru-Net – popular companies they invested in are iMobilco, iContext, ivi.ru, Biglion
- S-Group Ventures – popular companies they invested in are TUIRussia and CIS, Metallurgic Commercial Bank, Mediglobe, Fiberzone
As you can see, Russia’s VC Market is working very well. Russia has set their country apart from the rest! Experts like, Efraim Landa, declare Russia is leading the way in diversity through the venture capital market. According to Venture Capital Market Navigator, a publication focusing on the Russian venture capital, in 2011 venture capital investments in the Russian IT sector amounted to $237 million in a total of 139 deals. The IT sector is at large, the most influential sector in VC funds within the Russia Market. Declared in Forbes magazine, E-commerce is where it’s at! Russia’s VC market knows this and is investing where the money is. Russia’s VC firms also invest in entertainment and social networking. E-commerce has paid off and raised investments worth approximately $107 million, while venture in entertainment and social networking attracted almost $60 million according to Venture Capital Market Navigator. These numbers prove great for the Russia VC Market.