Private Equity & Venture
Capital in Russia
2
1. Market overview
2. Case study: E-Commerce
3. VC trends
NAIMA – National Alternative Investment Management Association, a
non-profit partnership representing alternative investment firms and
service providers committed to the growth of long-term capital in
Russia
NAIMA was set up in 2012 by leading PE and VC funds in Russia with the
support of international law and consulting firms, and in close cooperation
with international industry partners and associations.
The objectives of the association are as follows:
draw the attention of Russian institutional investors (pension funds,
banks, insurance companies and development institutions) to the
direct investment market;
promote the Russian direct investment market internationally and
ensure appropriate positioning for Russia among other emerging
markets;
create a more favorable legal environment for capital raising, deal
structuring and project management by funds registered in Russia and
other jurisdictions;
establish professional standards of corporate governance, reporting
and compliance for responsible investment, support for professional
training and the creation of a certification system for specialists in
alternative investments.
LIST OF CORPORATE MEMBERS
Althaus Consulting
Baker Botts Ambassador Bright Capital Ambassador Da Vinci Capital Management
Debevoise & Plimpton Ambassador East Capital Ambassador Ernst & Young
Intertrust Management Jazz Capital Partners iTechCapital
KPMG Ambassador Mint Capital
PwC
Russian Venture Company
Rye Man Gor Securities Ambassador Sberbank CIB Ambassador Squire Sanders
Third Rome
Troika Capital Partners Ambassador United Capital Partners
VIY Management Ambassador
General features of funds
22
175
139
5
20
8
real estate
venture capital
growth
mezzanine
distressed
fund of funds
Funds by asset class, in numbers
Funds by type, in numbers
164
175
PE
VC
General features of PE funds
85
61
7 4
Traditional (Private)
Captive/ Family
office (Private)
State
PPP
PE funds by LP, in numbers
128
36
Russian
International
PE funds by origin, in numbers
84
29
14
10
27
Multi
TMT
Industial
Infrustructure
Other*
PE funds by sector focus, in
numbers
General features of VC funds
114
24
11
18
8
Traditional (Private)
Captive/ Family
office (Private)
Corporate Fund
State
PPP
VC funds by LP, in numbers
155
20
Russian
International
VC funds by origin, in numbers
44
16
97
8
10
Multi
Healthcare / Biotech
Software / Internet
Industrial
Other*
*Cleantech, electronics/ robotics, infrustructure, Edtech, Fintech
VC funds by sector focus, in
numbers
$607M
invested
279 deals
closed
•
Almost 94% of the deals were in IT
•
Software/Internet B2C was the most
popular segment with the share of
65% of VC Investments
•
Most investors were Private or
Corporate with the shares of 68%
and 23% respectively
•
Average deal size was $2.2m
PPP $23m Corporate $140m Public $24m Private $413m Software/Internet B2C $394m Software/Internet B2B $103m Other IT $44 m Computer Tech, hardware $28.4m Industrial tech $16.4m Other Tech $1.2m Source: RMG Partners Biotech $20m Angel $7m
11 months 2014 results
0 50 100 150 200 250 300 350 400 450 Software/Internet B2C Software/Internet B2B Social Media Platform/Middleware
Enterprise management software Marketing/Advertising
Other B2C Internet services/software2 Other business software
Other B2B software
Other B2C Internet services/software Search/Recommendations Content providers Education E-commerce
OTHER B2B
SOFTWARE
Source: RMG PartnersE-COMMERCE
VC investments in software/internet
158 222 385 142 149 139 154 187 109 127 174 101 90 86 97 72 53 99 128 79 70 81 0 20 40 60 80 100 120 140 0 50 100 150 200 250 300 350 400 450 1q 2012 2q 2012 3q 2012 4q 2012 1q 2013 2q 2013 3q 2013 4q 2013 1q 2014 2q 2014 3q 2014
Total deal value
Number of deals
Source: RMG Partners
Investment in the e-commerce segment:
Still a high level in 2014
•
Total investment amount to exceed that of 2013 ($235 million)
•
Main deals:
$12 million from Vaizra
Capital
$7 million from EBRD
and MCI
$7 million from
e.ventures, Global
Founders Capital,
Holtzbrinck Ventures
+ InVenture Partners.
Undisclosed stake
acquired by Naspers
$150 million from AFK
Sistema and MTS
$40 million from Anatoly
Goncharov and other
Russian investors
The "invest-abroad" trend gets stronger
•
The “DST school:” More and more
Russian money is invested abroad;
the trend accelerated in 2014
•
The trend is even followed by funds
that were initially focusing on Russia /
CIS
•
Some funds now reject the “Russia”
label and define themselves as purely
global funds.
Western funds: From sanction-driven retreat
to confirmed commitment to Russia
•
Bessemer: “New risks, but no stopping”
•
Intel Capital: “Not involved in politics”
•
Mangrove: “Still working in Russia”
•
Tiger Global Management: Withdrew
from Wikimart
•
EBRD embarrassed: To leave (Rusnano
project) or not to leave (Webinar.ru)?
Russian venture capital market overview includes a
rundown of Russia’s venture capital market
Volume: 20+ pages
Languages: EN, RU
Release: Each quarter / 4 issues per year
Formats: Electronic
Paper size: A4
Free subscription
RMG client database
East-West Digital News (EWDN) subscribers database
RMG online resources, RMG mobile application (EN, RUS)
Partnership with Marchmont Innovation News, Moscow Seed Fund, Bargan News, NAIMA and others (EN, RUS). Media partners’ support offers active links on company web-site following the report location
RMG Media database (EN, RUS)
Russian Venture Capital Market Overview is focused on International and Russian target audience:
Investors: investment funds, Venture & Private Equity funds, banks, financial groups, family offices & other
Venture entrepreneurs, startups
Governmental and market development institutes
Consultants and service providers on financial market
Non-profit organizations and associations, state institutions, state controlling entities, stakeholders
The primary goal of this report is to make Russia’s innovative sector more alluring for both foreign and domestic investors and increase the efficiency of contacts between investors and innovative companies seeking financing. The main barrier to growth of Russia’s venture capital market is the lack of objective information. Foreign and domestic investors do not have sufficient reliable data and analytical materials on innovative markets and projects in Russia. This slows down the search for investment targets, makes investment decisions more difficult, increases costs for project analysis and due diligence, and restricts the size of the pool of potential venture investors
