Investing in a startup: where is all the money?

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Today we will analyze venture capital investments in technology sectors.

The information technology sector has been and remains the most demanded among investors. The sector is showing steady growth, both in terms of the amount of attracted investments and the number of the average amount of transactions.

Let’s analyze the IT sector for the distribution of venture capital investments:

This is a familiar picture of the basic rule of investing from the first part.

Investors prefer to invest in established companies that are at the “expansion” stage.

The average amount of transactions is a kind of indicator of the interest of investors. The larger it is, the more attractive the sector is, and, therefore, it will be much easier to attract more investment than in other sectors (under equal conditions).

You are familiar with these companies, which captured the capital of investors:

«Ozon», «Citymobil», «YouDo» … Why do investors invest in such companies, and do not finance even very promising projects at the beginning of their formation,

However, it is worth mentioning the basic rule of investment —

If a startup requires more funding, and the investor does not have enough financial resources to diversify risks, then with a probability of

Let’s go back to the big deals in the information technology sector:

It should be noted that the largest transaction

In March

The Ozon.ru company needs no introduction.

In November

Citymobil is a service for ordering a taxi through a mobile application …

In November

RealtimeBoard is a collaboration service. A free virtual board on which you can pull pictures, videos, documents, and also take notes — draw, write, glue stickers, saving the results in real time.

In September

Investors’ funds are attracted according to the scenario of placing the company’s shares on the stock market. It is not necessary, of course, to place shares — you can place various assets of the company. Any private investor or fund can invest. The total amount of funds raised in «YouDo» was

In principle, one can disagree, everything is clear now. However, in

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Big deal in September

In the first half

In the industrial technology sector, the largest deals were also made with the participation of state funds: VEB Ventures invested in

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As you can see, nothing trivial. Invest in companies that are not only promising players in the market, but also that bring profit to their investors today.

Foreign startups compete with Russian startups and companies.

As you can see, everything is practically the same, except that the amount of investments in foreign startups is often more than in Russian ones.

Average deal size in the first half of the year

In the first half of the year

Here Russian investors are more willing to invest in the first stages of a startup’s development, but the rule of investing in a startup at the expansion stage is unshakable.

In which foreign startups and how much Russian investors are investing, see here:

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Grants are an important factor for the sustainable development of the venture capital market and the innovation ecosystem in general.

According to the results of the first half of 2019, the number of grants issued amounted to 2,357 units in the amount of $ 46.4 million. Compared to the first half of 2018, investments increased by 23% ($ 37.1 million). The number of grants increased by 4% (2,266 units in the first half of 2018).

Grants are a powerful financial tool to support start-up companies. The previously mentioned startup «ExoAtlet» began its journey precisely by receiving a grant from the Ministry of Emergency Situations in the amount of

So here too, ExoAtlet attracted investments from

Exoskeleton sales began in 2016.

Eventually:

Corporate investors are becoming more and more active players in the venture capital market;

The most active venture investors are Sberbank, Yandex, MTS and Mail.ru;

As before, there is a tendency to diversify the portfolio of Russian investors at the expense of foreign investments;

In general, a significant increase in the number and amount of transactions in the Russian venture capital market allows us to optimistically assess the prospects for its development, and investments in foreign startups indicate that Russian venture funds have sufficient funding.

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If you could still have questions, why your project is bypassed by inverters, then, as a result of two articles, it should be resolved.

Well, how to attract investment in your startup and which funds to apply to, I will tell you in the next article.

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P. S. Links to sources are now in