Russian venture capital investment up to $262mn in 1H18

Russian venture capital investment up to $262mn in 1H18
Russian venture capital investment up to $262mn in 1H18
By bne IntelliNews December 4, 2018

RB Partners, a Moscow based M&A, corporate finance and VC advisory, has just released the English version of its bi-annual review of the Russian venture market. The report includes a selection of articles from East-West Digital News, which illustrate the industry trends in the first half of 2018, reports East-West Digital News (EWDN).

The period was marked by a certain stability, note the RB Partners analysts. Slight year-on-year variations in the number and volume of transactions could be observed, however:

  • The number of deals in decreased from 162 in 1H17 to 140 in 1H18;
  • Investment volume increased from $227mn to $262mn;
  • Average deal size increased from $1.6mn $1.9mn;
  • The number of exits grew from 12 to 20, with total amount increasing from $133mn to $175mn.

The main market players tended to invest in more mature projects: “Venture funds have become more active at the start-up stage, while corporations with large cash reserves but without a specific fund, began to actively invest at later stages (growth and expansion),” notes the report.

Investors backed projects mainly in the fields of transport and logistics, B2B software, and consumer Internet including e-commerce. The sharing economy also attracted investors in Russia as it did in the global market.

Government support continued , which RB Partners Managing Director calls “a crucial trend”  with state-related organizations supporting companies that develop certain services, such as car sharing.