Central regions | Finance, business | Technology & innovation

New report uncovers key deficiencies of Russiaís VC market

17 Jul '18
Russian Venture Company (RVC), the national fund of funds nurturing the innovation industry in Russia, has published this yearís report on the state of the venture sector in Russiaís economy. The Russian VC market is still a dwarf compared to the global leaders, the key findings in the report tell us.

Russiaís venture capital market accounts for a meager 0.01% of the GDP, a level that places Russia next to countries like Slovakia or Spain and is but an estimated 30% of the venture markets in the leading economies such as Germany or France. By the end of 2014 the Russian market discontinued its free fall that had begun back in 2012, but no real growth has been observed since then.

The authors of the RVC study polled a number of investors and found that in the latterís opinion, one of the key snags that hinder the development of the domestic VC market is a very limited number of projects which investors find interesting. While the nationwide pipeline of projects has shown certain growth over the past few years, the quality of those has deteriorated, the investors complained.

Another deficiency the study has uncovered in the Russian venture industry is the lack of business competencies found in most entrepreneurs and project teams. That gets seriously in the way of turning research results into real commercial products.

RVC also pointed to very limited exit opportunities as a debilitating factor in the development of Russiaís VC market. The number of investor exits has plunged over the past couple of years. Facing low venture asset liquidity, the number of investors operating in the Russian market has shrunk.
Publish in Twitter
Write to Facebook
Google Buzz
Write to LiveJournal
Show in MM
Share MK
Find Related Content


Latest News: Central regions
24 Jun '19 | Finance, business | Technology & innovation
20 Jun '19 | Technology & innovation | Finance, business
19 Jun '19 | Finance, business | Technology & innovation
18 Jun '19 | Finance, business | Technology & innovation

Feature stories

26 May '19
This article has been written by Carl Burch, an MBA,...
4 Apr '19
Russian scientists have come up with what they say is...
29 Jan '19
Russian biologists and biophysicists have developed...
Search (News archive - 21364)
Independent Software Developers Forum
Marchmont News

Latest News

24 Jun '19
Starta Ventures, a U.S.-based accelerator of Russian...
21 Jun '19
Rostelecom, the national telecom operator, has bought...
20 Jun '19
A Moscow-based company called MindScore has come up...

Most read stories from last week

24 Jun '19
Starta Ventures, a U.S.-based accelerator of Russian...