The volume of the Moscow venture capital market in 2022 surpassed the pre-pandemic level, amounting to $658 million, analysts at the Moscow Innovation Agency have calculated. At the same time, compared to 2021, it sank three times.
Moscow consistently accounts for more than half (54%) of the Russian venture capital market both in terms of volume (in all of Russia, the number of transactions reached $1.2 billion) and in terms of the number of investments. In 2022, investors closed 119 deals with Moscow-based companies, compared with 163 in all of Russia.
The capital in this rating is traditionally followed by St. Petersburg (11%), Tatarstan and the Krasnodar Territory (3% each).
In 2022, 67% of the total number of transactions in the capital corresponded to previous and initial investments. In most cases, funds were attracted by IT companies with B2B products, while the participation of “newbies” in the venture capital market increased.
The average age of companies attracting investment has decreased from 5 years in 2021 to 3.5 years in 2022.
Experts attribute the 2022 recession to “a return to normal after the VC market overheated in 2021.” The overheating, analysts say, occurred due to pent-up demand for technology, inflated valuations of tech companies, and low interest rates. Market volume was also affected by sanctions imposed after the start of Russia’s special operation in Ukraine.
According to the forecasts of RB.RU and Dsight, in 2023 we should expect between 130 and 150 transactions, and the volume of investments will be approximately $400 million, excluding large transactions and IPOs.
Author:
anastasia mariana
Source: RB
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