Russian venture transactions market has grown by 48% in 2017.
In 2017, the market of venture transactions in Russia has shown growth by 48% amounting to $243.7 billion comparing to $165.2 for the previous year. Press service of the Russian venture company (RVC) reports about it on Tuesday.
PwC together with RVC published the results of the seventh annual review of the Russian venture industry "MoneyTree: venture market guide" for 2017 and preliminary results for the first six months of 2018.
"According to the research, the market of venture transactions that is a base of venture ecosystem, in 2017, showed growth by 48% amounting to $243.7 million comparing to $165.2 million for the previous year. The number of transactions increased to 205, which it by 21 transaction more than in 2016. This dynamic allows the conclusion of minor increase of investors' activity of the Russian market", the message says.
Average amount of the transaction in 2017 increased to $1.5 million ($1.1 million on 2016). Information technology sector is a leader for the number of venture transactions and attracted investments. In 2017, transactions in this sector constituted 75% of the total number and 84% of total amount of all transactions. Volumes of industrial technology and biotechnology segments were 10% and 6% correspondingly.
"Venture market, for the first time after many-years stagnation, grows in size and number of transactions. This is an important signal of the gradual change of spirits and adjustment of the market to new conditions. The key questions - if it is possible to turn this unstable dynamics to a long term trend", CEO of RVC Aleksandr Povalko said and added that the venture market development strategy developed by RVC together with the Ministry of Economy and Development should eliminate limitations for the industry growth.
Head of transaction support practice at PwC Russia Oleg Malyshev noted that according to the data for the first six months of 2018, total volume of the venture ecosystem constituted $200 million and this compared to data for the entire 2017.
"This is an indicator of the restored demand for venture companies on the late development stages. Russian venture funds demonstrate high involvement in the global venture system — in 2017, the volume of transactions of the Russian funds with the foreign projects amounted to $969 million, which is three times more that the investments in the Russian projects for the compared period", the expert said.