The volume of venture investment in the Russian IT sector in 2012 could increase by over 50% to exceed USD 450 million.
The first issue of MoneyTreeTM: Venture Capital Market Navigator, a publication focusing on the Russian venture capital market in 2011, jointly issued by the PwC Centre for Technology and Innovation (CTI) and RVC. In 2011 venture capital investments in the Russian IT sector amounted to USD 237 million in a total of 139 deals.
2011 MoneyTreeТМ: Venture Market Navigator (MoneyTreeТМ: Russia) is fully focused on venture capital investments in the IT sector, which is the most dynamic and transparent sector of the Russian market. According to the overview, this segment of Russia's innovation market attracted the absolute majority of venture capital investments.
Early-stage companies and projects attracted most of the investments — USD 94 million going into 16 deals. These figures are characteristic of young innovation-driven Russian IT companies, a segment that got up and running only several years ago and, thus far, has experienced the need primarily for "startup" investment. We anticipate that, providing the positive trends in the Russian and global economy continue, 2012 will see the Russian venture market continue to grow and achieve new records. According to our estimates, the volume of venture investment in the Russian IT sector in 2012 could increase by over 50% to exceed USD 450 million.
Russian IT sector amounted to USD 237 million in a total of 139 deals.
An increase in the number of investors on the market and an expansion of the areas they work in will boost the further development of Russia's venture capital market. We expect to see sustained qualitative change in the market, in particular, the market becoming more transparent and investment and corporate governance standards coming into line with those in developed countries.
For over 15 years, PwC has been issuing MoneyTreeТМ reports on leading tech markets such as the United States and Israel. For many global venture capital market players, these reports serve as the definitive source of information on current market conditions and recent trends. As the Russian venture capital investment market develops, new issues of MoneyTreeТМ: Russia will cover developments in the existing trends and the emergence of new trends in the IT sector, as well as other segments of the Russian innovation and technology market.