|By PR Newswire||
|March 27, 2014 05:00 AM EDT||
MOSCOW, March 27, 2014 /PRNewswire/ --
PwC and Russian Venture Company (RVC) present the 2013 Russian venture capital market report MoneyTreeTM: Venture Capital Market Navigator. According to the report, in 2013, fast-growing companies, working in the Russian biotechnology, industrial, and IT sectors, received venture capital investments of USD 653.1 million from a total of 222 deals. The number of investor exits almost doubled, increasing from 12 to 21, while investors' proceeds from these exits grew more than fivefold, from USD 372 million to an unprecedented USD 2 billion.
The survey reviews venture capital deals announced from 1 January through to 31 December 2013, with a value of USD 50,000 up to USD 100 million.
The report shows that the number of venture capital deals in 2013 exceeded the 2012 results by 18% (222 deals vs 188 deals in 2012), while the total investment decreased by 28% (USD 653.1 million in 2013 against USD 911.9 million in 2012) as a result of the average deal value dropping from USD 5.6 million to USD 3.1 million. At the same time, total venture capital deals on the Russian market, including grants, large deals worth over USD 100 million, investor exits, and investments in venture capital infrastructure, grew from USD 1.98 billion in 2012 to USD 2.89 billion in 2013.
The survey shows a decline in the average deal value for almost all stages of project development. This was primarily driven by the maturation of the market and, as a consequence, the fact that the average indicators for transactions have approached that of developed markets like Europe where the average deal comes to USD 1.4 million, ranging between USD 800,000 and USD 2.9 million in various countries.
As in 2012, the IT sector is leading in terms of investment funds raised. In 2013, it accounted for almost 87% of deals (193 deals) and 93.5% of total investments (USD 611 million). Thus, the IT sector's market share grew compared to the last year, when it accounted for 83% of deals and 87% of total investments, respectively. The number of IT deals increased by 23.7%, while total investment fell by 22.8% (against USD 792.1 million in 2012) since the average deal value decreased from USD 5.6 million to USD 3.3 million.
The industrial and biotechnologies sectors remain rather small in terms of both the number of deals and investment funds raised. The 2013 results indicated 16 deals worth USD 29.1 million in the industrial technology sector, which is one deal less than in 2012.
Grants still remain the main source of financing for small enterprises in these sectors. At the same time, the total number of deals in the industrial technology and bio-technology sectors has decreased even as the total number of grants has increased. For instance, we recorded 1,693 grants in 2013, 74% of which went to the industrial technology and bio-technology sectors, compared to 702 grants in 2012.
Download the report:
Notes to editors: For more information, please contact RVC - Yulia Davydova (Tel.: +7-(495)-777-0104, e-mail: [email protected])