×

Russia's venture market: the results of the first half of 2015

August 2015

Analytical Report (full version)

Request cost of the full version of the study: news@json.tv

Analytical Report (full version)

Russia's venture market: the results of the first half of 2015
Russia's venture market: the results of the first half of 2015
August 2015

Russia's venture market: the results of the first half of 2015

August 2015

To register or Log in, to download the file

Download file

+7 926 561 09 80; news@json.tv

Write, call, if you have questions

 

The venture capital market is one of the main sources of innovative projects financing. In the first half of 2015, there was some reduction of activity from investors. Compared to the same period last year, the Russian venture market showed a drop of 33% or 209.1 million dollars. The company J'son & Partners Consulting presents brief results of a study on the venture market of the Russian Federation in the first half of 2015

 

 

Key research questions

The study "Russia’s Venture market: results of the first half of 2015," examines the volume and current state of the Russian venture market, comparing its performance with the similar period of last year in physical and money terms, as well as main types of investors and the most attractive industries for investment. 

 

Practical value of this research

The results of this study will help assess the current state of the Russian venture market, the trend of investments in a particular industry and activity of different types of investors, also they help determine the most attractive industries and some particular segments for investors.

 

Target audience

The report is intended for venture capital funds, business angels, private equity funds and startup founders.

 

 

Methodology

 

While analysing the data the experts were taking into consideration actually received venture capital investments made by business angels, investment companies, as well as private, corporate or government venture funds of USA during one round of financing. If a company received investments in two or more rounds, then each round is viewed as a separate transaction. The term "venture investment" means acquisition of some share capital in new or growing companies, provided that the acquired shares were less than the controlling interest. Invested resources are primarily directed to business development, not for purchasing the shares owned by existing shareholders (founders) of the company.

 

The authors also considered (in the overall volume of new financing) investments of company founders in their enterprises and direct investment (or “private equity”) in venture capital firms at later stages of their development.

 

Experts from J'son & Partners Consulting identify the following types of transactions by their geographical location:

 

1)    transactions involving Russian startups;

2)    investing in foreign startups with participation of Russian investors, including syndicated transactions.

 

 

Summary of the study

 

Investments in Russian projects

 

For the first half of 2015 analysts of J'son & Partners Consulting have allocated 140 transactions for a total amount of 209.1 million dollars, of which $115 mln were the transactions to attract new financing (cash-in) for a total amount of 147,7 million and 25 transactions for selling existing shares (outputs) in the amount of 61.5 million dollars. The maximum number of investments was made by the Fund of promoting development of small forms of enterprises in scientific and technical areas (nine transactions).

 

Analysis of the number and structure of the investors have shown the increasing importance of business angels and accelerators. It was carried out 34 and 11 deals with their participation, respectively. It should also be noted that in comparison with last year the activity of public investors has dropped significantly, to 12%.

 

 

Note the increase in the number of "outputs" compared with the first half of 2013 and 2014. Analysts of J'son & Partners Consulting associate this trend with the Russian market “maturity” as well as the current macroeconomic environment.

 

We can see a decrease of transactions for raising new funding compared to the same period of 2014 and also simultaneously increasing outputs. New financing compared with the first half of 2014 showed a decline and amounted to $ 147.7 million in monetary terms.

 

 

Sectoral analysis of the financed projects showed a decline in the share of ICT projects, both in monetary and quantitative terms. Note the growth of investment in the financial sector, which accounted for 34.4% of market in monetary terms, due to the launch of the Touch Bank by the OTP Bank.

 

 

The investment stages analysis showed that major part of investments, like in 2014, accounted for the seed stage, while the share of seed investments in the market structure increased by 7.9%. The total number of seed investments in the first half of 2014 amounted to 95 transactions against 118 in the same period last year. Also, compared with the first half of 2014 the amount of investments in all rounds reduced.

 

 

It was raised $64.2 million in money terms in the first half of 2014 at the seed stage against $22.7 million in the same period last year, which is a consequence of seed investments of "OTP Bank" in Touch Bank. The average volume of investment at the seed stage has increased several times – from 190 thousand to 670 thousand dollars.

 

The largest number of deals at the seed stage, like in the first half of 2014, was carried out in the ICT industry – transactions 62 vs 80, respectively. Also, there is a slight fall in the share of seed investments in ICT projects compared to last year. Among the segments of industries at the seed stage Internet services are leading with 50 transactions.

 

It was invested $13.2 million in the first half of 2015 in the ICT at the seed stage against $13.9 million in the past year by venture investors. In the general structure the share of investments in ICT projects at the seed stage decreased to 20.5%. Finances also lead in terms of money among segments of industries (mainly due to investments in the opening of Touch Bank) with $44.9 million as well as Internet services (with 11.4 million dollars).

 

 

Investments in foreign projects

 

The number of investments into foreign projects with participation of Russian investors increased both in quantitative and money terms. Totally it was funded 67 projects (+39,5%), the volume of investments increased to $1.7 billion (+253%). Such significant growth of investment in foreign projects became reality due to the large share of syndicated deals in the first half of 2015, they account for over 96%; the average check is 36.1 million dollars.

 

 

Conclusion

 

 

Detailed results of the research presented in the full version of the report

«Russia's venture market: the results of the first half of 2015"

 

Rough contents of the report

 

  1. Introduction
  2. Methodology of the report and information sources
  3. Major events in the venture capital market of the Russian Federation in the first half of 2015
  4. The venture capital market of the Russian Federation in the first half of 2015

4.1.        Brief summary of the first half of 2015.

4.2.        The market volume in physical and value terms

4.3.        Dynamics of venture deals

4.4.        Classification of deals by investment rounds

4.5.        Classification of deals by investment volumes

4.6.        The largest venture deals in the Russian Federation in the first half of 2015

  1. Analysis of the Russian projects in the first half of 2015

5.1.        General characteristics of the projects

5.2.        Industrial structure of the projects

5.3.        Analysis of investments in B2B and B2C segments

5.4.        Support for mobile applications

  1. Investors in the venture capital market of the Russian Federation in the first half of 2015

6.1.        General characteristics of investors

6.2.        Geographical classification of investors

6.3.        Typology of investors

6.4.        Profiles of largest investors

  1. Cash-out transactions in the first half of 2015

7.1.        General characteristics investor exits

7.2.        The largest "outputs"

  1. Foreign projects in the first half of 2015

8.1.        Analysis of foreign projects in the first half of 2015

8.2.        Structure of foreign projects          

  1. Syndicated deals in the first half of 2015

9.1.        General characteristics of syndicated deals

9.2.        Largest syndicated deals

9.3.        Syndicated deals with foreign investors

9.4.        Syndicated investments in foreign projects                

 

10. Conclusion

 

The newsletter is prepared by the J'son & Partners Consulting. We strive to provide factual and prognostic data which fully reflect the situation and which are available to us before issuing the material.

 

 

 

The venture capital market is one of the main sources of innovative projects financing. In the first half of 2015, there was some reduction of activity from investors. Compared to the same period last year, the Russian venture market showed a drop of 33% or 209.1 million dollars. The company J'son & Partners Consulting presents brief results of a study on the venture market of the Russian Federation in the first half of 2015