The monetary volume of the Russian risk market in the first half of 2023 plummeted 10 times. According to the Dsight platform, the last six months have been a record year for the market: investments amounted to only $27 million, which represents a 21% year-on-year decrease in the number of transactions. The negative trend will continue until the end of the year, experts say.

Russian risk market plummeted 10 times in the first half of 2023 – Dsight

The volume of the Russian risk market in the first half of 2023 decreased tenfold compared to the same period in 2022 and amounted to $27 million. In the first six months, 66 transactions were completed, a year-on-year decrease of 21%. , according to the Dsight report.

“It is very likely that the negative trend will continue until the end of 2023 and that a gradual market recovery will begin in 2024, provided the geopolitical situation stabilizes,” the report states.

According to Dsight, venture capital investment has decreased at all stages. The biggest drop occurred in the early and late stages.

Dsight: The reduction in the total amount of capital in the venture industry and the increase in the cost of money has led to increased competition among startups for rounds.

Private funds reduced the investment volume nine times to $11 million, but retained the lead in the investment volume structure. Currently, risk investments have become a priority for funds: some of them have preferred to buy foreign companies that leave the market at a large discount.

“This trend is temporary: the assets of ‘foreigners’ will soon run out, so I would call the current period a stage of resource redistribution,” said Arthur Martirosov, venture partner at the Voskhod fund.

State investors became leaders in the number of transactions; the number of transactions with its participation increased by 47% year-on-year. However, the average transaction size in the technology companies segment in the first half of 2023 decreased 40 times, from $4 million to $100 thousand.

Corporations, in turn, have gone from investing in or buying companies to developing their own products. The trend will continue until the geopolitical situation improves, Dsight believes.

Formerly RB.RU released risk market analysis for the third quarter. Experts have found out whether there have been positive changes in the sphere of Russian venture capital and what results can be expected until the end of the year. You can see all market reports. Here.


Kirill Bilyk

Source: RB

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