venture capital in russia as the instrument of financing the innovative enterprises

Venture Capital in Russia as the Instrument of Venture Capital in Russia as the Instrument of Financing the InnovativeFinancing the Innovative EnterprisesEnterprises

Oksana MironovaOksana MironovaProject ManagerProject Manager

Russian AssociationRussian AssociationFor Direct and Venture InvestmentFor Direct and Venture Investment

Российская Ассоциация Прямого и Венчурного ИнвестированияРоссийская Ассоциация Прямого и Венчурного Инвестирования

Funds in RussiaFunds in Russia 1994-2004 1994-2004

11

8 8

10

3 3

4 4

5

8

1

2

4

3

2

1 1

19

393736

3937

11

5043

27

37

0

2

4

6

8

10

12

14

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

0

10

20

30

40

50

60Collected funds

Closed funds

Total funds


Sources of CapitalSources of Capital

97%

3%

74%

26%

Russian Foreign

1994-19981994-1998

$ $ 2,94 2,94 blnbln $ $ 1,02 1,02 blnbln

1999-20041999-2004


InvestmentsInvestments

1994-19981994-1998 1999-20041999-2004 TOTALTOTAL

Companies financedCompanies financed 163163 190190 353353

Total investment (blnTotal investment (bln dollarsdollars)) 11621162 13041304 24662466

Average dealAverage deal ((mln dollarsmln dollars)) 7,17,1 6,86,8 77


Distribution of Investments by Distribution of Investments by StageStage (1994-2004) (1994-2004)

0 100 200 300 400 500 600 700 800

Seed and startup

Early

Growth

Restucturization

Later stages1999-20041994-1998


Distribution of Investments by FieldDistribution of Investments by Field (1994-2004)(1994-2004)

0 50 100 150 200 250 300 350

Telecommunications

Computers

Electronics

Biotechnology

Medicine

Power production

Consumer market

Industrial equipment

Light industry

Chemical materials

Transportation

Financial services

Agriculture

Construction

Other

1999-20041994-1998


What are the Investments You Need?What are the Investments You Need?

$500 000 - $2.5mln

19%

$100 000 - $500 000

24%

Less than $100 000

23%

$2.5mln - $5mln

8%

Hard to say18%

More than$5mln

8%


Has the Enterprise Addressed Venture InvestorsHas the Enterprise Addressed Venture Investors??

Yes - did not get the

financing9%

No - what is this?90%

Yes - got the financing

1%


Factors Complicating the InvestmentFactors Complicating the Investment

Risk estimate

6%

Leaving the company

16%

Level of managers

16%

Managers' "thriftiness"

13%

IP protection6%

Cost of the companies

43%


Venture FairVenture Fair – – Ground for Ground for CommunicationsCommunications

Exposition of the CompaniesExposition of the CompaniesCongress blockCongress block


Other15%

Chemistry and new materials

10%

Computers19%

Medicine8%

Construction5%

Биотехнологии8%

Industrial equipment and

electronics35%

Distribution of Participating Companies by FieldDistribution of Participating Companies by Field


Origins of the ProjectsOrigins of the Projects

0 2 4 6 8 10 12 14 16%

Personal recommendations

Venture fair

Direct marketing

Consulting companies

Credit departments of banks

Media advertising

Internet

Russian Association of Direct Russian Association of Direct and Venture Investmentand Venture Investment

((RAVIRAVI))

www.rvca.ruwww.rvca.ruwww.rvf.ruwww.rvf.ru

venture capital in russia as the instrument of financing the innovative enterprises

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