×

 

Venture market is a key financing source for innovative projects. Last year Russian market was over 3 bln.USD, including the fact that new funding was over 800 mln.USD.J’son & Partners Consulting presents main results of the research about Russian venture market in 2013. 

 

Methodology

 

During the analysis, the actual received investments made by business-angels, investment companies, private, corporate and government venture funds during one round of financing had been taken into consideration. If a company received financing in two or more rounds, each round was counted as a separate deal. Under venture financing was considered a purchase of share, charter capital of new or growing companies, and the purchased share was less then controlling share. The investments are mainly aimed at business development and not on the buyout of current shareholders (founders) of the company.

 

Investments, made by companies’ founders in the total volume of new financing, private equity, made in venture companies on the mature stage of development, had also been considered.

 

J’son & Partners experts have explored all deals with Russian start-ups (with Russian and foreign investors) and Russian investments in foreign start-ups (including syndicated deals).

 

Definition of Information and Communication technologies (ICT)

 

ICT – technologies that are being used for creation, storage, management and processing of data. The definition involves not only computer technologies, but also telephony, TV and radio broadcasting, all types of transfer and processing of audio- and video signal, convergence of technologies in the processing and delivery of content. 

 

Venture investment market, main results of 2013

 

278 investors have participated in 419 deals on the total amount of 3,25 bln.USD in 2013. The average volume per deal was 7,7 mln.USD. Volume of cash-in financing in the total structure was 912,5 mln.USD which is equal to 406 deals. Average volume per deal with attracted investments was 2,24 bln.USD

 

 

Share of syndicated deals is rather high in the total structure (36%). Share of start-ups oriented on B2C segment prevails: in quantitative terms 72% deals, in monetary terms – 82%.

 

Deals on seed-stage are dominating in the structure of rounds – 72%.

 

 

Brief analysis of start-ups

 

Share of foreign projects was around 15% deals with 30% of totally raised investments. The average amount of investments is equal, in general, for Russian and foreign projects, although Russian projects are more expensive. The maximum difference was fixed on Round B – Russian projects are being evaluated in 30% averagely.

 

Start-ups by industry:

 

  • The highest number of deals was in ICT start-ups (317 deals).
  • In market structure by segments the largest amount of deals were closed in the segment – Internet-services (160 deals).
  • E-commerce segment is a leader by volume of attracted investments ($371,6 mln).

 

Brief analysis of investors

 

Venture funds have the major share among 278 investors. The structure of investors in quantitative terms is presented below:

 

 

Internet Initiatives Development Fund (IIDF) became a leader by number of venture investments in 2013.

 

Rating of deals

 

Top-5 deals on Russian venture market:

  1.      Tinkoff Credit System;
  2.      Vkontakte;
  3.      Moscow exchange;
  4.      QIWI;
  5.      Lamoda.

 

Top-5 deals with new capital:

  1.       Lamoda;
  2.       Maykor;
  3.       Avito;
  4.       Delivery Hero;
  5.       Ostrovok.ru.

 

Top-5 investments in foreign start-ups:

  1.       Planet Labs;
  2.       GenapSys;
  3.       DeliveryHero;
  4.       CocCoc;
  5.       Nafen.

 

Top-5 deals with involvement of foreign investments:

  1.       Lamoda;
  2.       Avito;
  3.       Ostrovok.ru;
  4.       Travelata;
  5.       MartMania. 

 

Venture investments opinion

 

In accordance with the survey of investors made by J’son & Partners Consulting in the beginning of 2014, funds have received around 1200 inquires for investments last year. Share of ICT projects was 90%. The percentage of venture businessmen meetings was 10%, number of total deals in the total number of inquiries was only 1%. 

 

Respondents consider that venture market in Russia increased for 25% in 2013. Venture investors think that market will grow for 20% more in 2014. The barometer of “venture mood” of Russian investors registered 65 from 100 points.

 

Comparison on global level

 

USA, in comparison with Russia, has share of venture capital in relation to countries’ GDP on 0,13% higher (or 4,25 times). By this index Russia is at the same level as China and Europe.

 

 

Conclusion

 

Russian venture industry has reached a stage where vast “exit” from investments are being registered. But the market is keeping its active growth – large amount of investment on the early and seed stages.

 

Positive factor – a lot of Russian market players are being involved in international processes: investments from foreign funds are being attracted, Russian investors are actively investing in foreign projects.

 

Detailed results of the research are presented in the full version of the Report: «Venture market in Russia: results of 2013» (101 р.)

 

Report will be interesting for venture funds, business-angels, private-equity investments, founders of start-ups.

 

Content of the report:

 

Methodology and sources of information

 

Chapter 1 Venture market in Russian Federation

 

  1.1. Short results of 2013

  1.2. Market volume, in units and in $

  1.3. Dynamics of venture deals in 2013

  1.4. Classification of deals by rounds of investments

  1.5. Classification of deals by volumes of investments

  1.6. Largest venture deals in Russia in 2013

Special part: survey of venture investors

 

Chapter 2. Projects analysis, 2013

  2.1. General description

  2.2. Geographical classification of companies

  2.3. Projects’ structure by industry

  2.4. B2B and B2C

  2.5. Support of mobile apps

 

Chapter 3. Investors on Russian venture market in 2013

  3.1. General characteristic of investors

  3.2. Geographical classification of investors

  3.3. Syndicated deals with foreign investors  

  3.4. The topology of investors

  3.5. Profiles of largest investors

 

Chapter 4. Cash-out deals in 2013

  4.1. General description of investors “exit” in 2013

  4.2. Largest “exit”

  4.3. Private equity

 

Chapter 5. Global market of venture investments

  5.1. General market structure and key market players

  5.2. Comparison of venture markets – USA and Russia - in 2013

Special chapter: brief overview of the global start-ups with a value over 1 bln.USD

 

Chapter 6. Infrastructure on the global and Russian venture market

  6.1. Government institutes for development of venture business

  6.2. The role of transnational corporations

  6.3. International infrastructure: techno parks, incubators, accelerators, university and research environment

  6.4. Infrastructure in Russia: techno parks, incubators, accelerators, university and research environment

 

Conclusion

 

List of companies mentioned in the report

 

List of tables

 

Table 1. Average and median deals by rounds, mln.USD

Table 2. Profile of deal with Lamoda       

Table 3. Profile of deal with Avito 

Table 4. Profile of deal with DeliveryHero 

Table 5. Profile of deal with Ostrovok.ru  

Table 6. Profile of deal with Game Insight

Table 7. Profile of deal with E96   

Table 8. Profile of deal with CocCoc        

Table 9. Segments and volumes of investments, mln.USD

Table 10. Largest investors by number of deals

Table 11. Profile of IIDF    

Table 12. Profile of Altair Capital   

Table 13. Profile of Runa Capital   

Table 14. Profile of Alexander Borodich   

Table 15. Profile of Moscow Seed Fund   

Table 16. Profile of Prostor Capital

Table 17. Profile of Microsoft Seed Fund  

Table 18. Profile of Start Fellows  

Table 19. Profile of Pre-seed Fund of investments        

Table 20. Largest investors by volume of deals

Table 21. All “exit” of investors     

Table 22. Profile of IPO Tinkoff Credit System   

Table 23. Profile of deal with Vkontakte  

Table 24. Profile of deal with IPO QIWI   

Table 25. Profile of deal with IPO Luxoft  

Table 26. Profile of deal with Foto.ru      

Table 27. Profile of IPO Zhivoj Office

Table 28. Profile of deal with DealAngel   

Table 29. Profile of deal with WeHostels  

Table 30. Profile of investments in Maykor        

Table 31. Startups with capitalization over 1 bln.USD    

Table 32. Startups with the largest subscribers’ base by month

Table 33. Profile of Accel Partners 

Table 34. Profile of Sequoia Capital        

Table 35. Profile of CITIC Private Equity  

Table 36. Profile of Wellington Partners   

Table 37. Typology of development institutions

Table 38. Rating of incubators/accelerators       

 

List of illustrations

 

Illustration 1. Market structure by types of cash flows, %       

Illustration 2. Share of founders in the total structure of investors, % 

Illustration 3. Dynamics of venture deals in 2013, number of deals     

Illustration 4. Dynamics of deals by volume of investments in 2013, mln.USD

Illustration 5. Market structure by rounds of investments in 2013, %  

Illustration 6. Monetary market structure by rounds of investments, 2013, %

Illustration 7. Quantitative market structure by volume of investments, 2013, %     

Illustration 8. Market structure in monetary terms by volume of investments, 2013, %      

Illustration 9. Structure of deals with a volume till 1 mln.USD in 2013 in quantitative terms, %      

Illustration 10. Structure of deals with a volume till 1 mln.USD in 2013 in monetary terms, %       

Illustration 11. Share of Russian and foreign projects by number of completed deals in 2013, %

Illustration 12. Share of Russian and foreign projects by volume of investments in 2013, %

Illustration 13. Average volume of investments in foreign projects, mln.USD.

Illustration 14. Average volume of investments in Russian projects, mln.USD

Illustration 15. Median size of investments in foreign projects, mln.USD       

Illustration 16. Median size of investments in Russian projects, mln.USD       

Illustration 17. Structure of companies, by industries in quantitative terms, %         

Illustration 18. Structure of companies, by industries in monetary terms, %  

Illustration 19. Quantitative structure of companies by segment, %   

Illustration 20. Average sum of transactions by rounds, by segments, mln.USD      

Illustration 21. Structure of companies by segments in monetary terms, %  

Illustration 22. Quantitative structure of B2B and B2C companies, %  

Illustration 23. Monetary structure of investments in B2B and B2C companies, %    

Illustration 24. Distribution of B2B and B2C companies by rounds of deals, number of deals        

Illustration 25. Distribution of B2B and B2C companies by rounds of deals, mln. USD        

Illustration 26. Distribution of deals with B2B companies by segments, number of deals    

Illustration 27. Distribution of deals with B2C companies by segments, number of deals    

Illustration 28. Distribution of deals with B2B companies by segments, %    

Illustration 29. Distribution of deals with B2C companies by segments, mln.USD     

Illustration 30. Average volume of investments by rounds B2B/B2C, mln.USD

Illustration 31. Median volume of investments by rounds B2B/B2C, mln.USD 

Illustration 32. Structure of companies in the view of mobile apps support, quantitative terms, %

Illustration 33. Investments in mobile apps, in monetary terms, %    

Illustration 34. Distribution of investors, %        

Illustration 35. Distribution of investors by number of deals, %

Illustration 36. Distribution of investors by volume of deals, %

Illustration 37. Share of syndicated deals in the total structure, by number of deals, %      

Illustration 38. Share of syndicated deals in the total structure, by volume of investments, %      

Illustration 39. Structure of investors in quantitative terms, %  

Illustration 40. Structure of “exit” in quantitative terms, %       

Illustration 41. Structure of “exit” in monetary terms, %

Illustration 42. Volume of venture investments in the leading countries, 2006 – 2012, bln.USD

Illustration 43. Number of deals by stages in USA, numbers    

Illustration 44. Structure of deals by industries on USA market, 2012  

Illustration 45. Venture market share’s dynamics in the GDP structure of USA in 2009 – 2013, %   

Illustration 46. Comparison of venture market in USA and Russia in the GDP structure in 2013, % 

Illustration 47. Comparison of venture market rounds’ shares by number of deals, %                

Illustration 48. Comparison of venture market rounds’ shares by volume of deals, %        

Illustration 49. Startups structure by industries, numbers        

Illustration 50. Startups structure in monetary terms by industries, % 

Illustration 51. Classification of startups by industries in USA, numbers

Illustration 52. Classification of startups by industries in Europe, numbers

Illustration 53. Classification of startups by industries in China, numbers       

Illustration 54. Classification of startups by business models, numbers         

Illustration 55. Classification of startups by types of services, %       

Illustration 56. Structure of cluster and cooperation of objects of innovational infrastructure         

Illustration 57. Location: techno parks and remoteness from cities in the world       

Illustration 58. Requirements for companies – candidates for obtaining a place in techno park

 

This Information Note is Prepared by J’son & Partners Consulting, We strive to provide factual and prognostic data that fully reflect the situation and are available to us before issuing the material. J’son & Partners Consulting reserves the right to revise the data after publication of new official information by the market players.