In 2022, investments in IT startups in Russia decreased by 57%

In 2022, the total volume of investments in technology startups amounted to $1.1 billion, while $900 million was received from transactions in January, before the outbreak of hostilities in Ukraine.

The number of transactions decreased to 128 against 291 in 2021. The software development sector attracted the most funds, investments amounted to $449.35 million, the HR technology segment. H H. (HR & WorkTech) received $425.67 million, investments in the field of cybersecurity amounted to $251.5 million, in projects in the field of telecommunications – $192.6 million

In the first category, transactions were made, in particular, with the developer of the information systems designer FIS (more than $5 million), between HR & WorkTech, with the recruiting chatbot platform XOR ($2 million).

According to Leta Capital, over the past year approximately 70% of IT startups have left the country. They mostly moved to Turkey, Kazakhstan, Armenia and Georgia. However, these countries often serve as transit countries, from where projects move to more developed venture capital markets: the Dutch, Spanish, German and British.

In the first half of the year, more than 1,000 companies changed registration. Following the announcement of partial mobilization in the fall, the output increased.

Earlier, the Ministry of Digital Development, as part of the measures to support Russian developers, proposed “road maps” for the development of the industry: “New software for the entire system” and “New industrial software”. The document provides for the opening of an industry venture fund from 2023. According to the authorities’ calculations, in seven years its investment capital will reach 30 billion rubles.