The venture capital market is recovering with a focus on mature companies: analytics from MIC and the Moscow Innovation Agency
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published
According to the study, the volume of investments in venture capital startups in Russia in 2024 increased by 46% to $178 million, while the number of deals decreased by 14%. This is due to a change in the strategy of investors, who now focus on funding more stable projects.
Key from the review:
⚪ Growth in pre-IPO investment: Pre-IPO investment has almost quadrupled, from $11m in 2023 to $42m in 2024.
⚪ Refocusing on mature startups: In an uncertain economic environment, investors prefer to invest in companies with solid financial models and mature products.
⚪ Interest in B2B products: Companies with B2B products attracted 26% more investment compared to last year.
⚪ Decrease in early-stage deals: Early-stage investments (Pre-Seed, Seed, A) declined 41%, highlighting a shift in focus to more mature companies.
Forecasts for 2025:
⚪ The venture capital market is expected to grow by 50%.
⚪ Increased number of deals in more mature and re-investing companies.
⚪ Strengthened position of business angels, who have become major players in the market, providing 42% of all venture capital investments.
Investor Market:
⚪ Business angels increased investment by 121% and have become major players, especially in late-stage companies.
⚪ Corporates have quadrupled investment, focusing on mature companies.
⚪ Private funds are cutting back on investments, but the number of early stage deals continues to grow.
‘Whilst in the current environment many investors are shifting their focus to ‘mature’ companies with more obvious chances of success, this does not mean that the market is completely ignoring early stage startups. We at KAMA FLOW consider absolutely every application from startups, as we believe that supporting early-stage companies is not only a chance to find a unicorn, but also an investment in the future of the entire industry. In addition, business angels balance the situation and continue to actively support projects at the Pre-Seed and Seed stages, which form the basis for the emergence of new players and ensure healthy competition,’ comments Evgeny Borisov, Partner at KAMA FLOW.