Page 24 - BNE_magazine_06_2019

24 I Companies & Markets bne June 2019
E-commerce projects attracted more than 30% of all investments
Investments excl. exits, $M
Activity of investors of different types by project stage
$M, excl. exits
Uptrend remains prevalent in the market
Number of deals led by PE funds have quadrupled since 2016
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• An investment of $80mn in Gett, a ride-hailing service with Russian roots;
• An investment of the same amount in WayRay, an augmented reality solutions developer with Russian roots;
• Capital injections of $61mn into Ozon, a leading Russian online retailer.
While the overall number of deals remained almost unchanged (from 302 in 2017 to 299 in 2018), the average value per deal in late stage investments increased dramatically. It grew from $13.9mn in 2017 to $49.2mn in 2018 (including the three deals mentioned above).
E-commerce deals accounted for more than 30% of all venture investments in Russia, with $194.2mn worth of funding in 2018.
PE funds and corporate VCs contributed the majority of investment money in 2018, with PE funds in particular accelerating the growth of late-stage companies. The number of deals involving such funds quadrupled from 2016, reaching 12 deals in 2018.
Among these deals were an $8mn injection by Rusnano Sistema SICAR and Skolkovo Ventures into Ivideon, and a $9mn round for DOC+ involving and Vostok New Ventures and Baring Vostok.
“The VC market grew significantly last year, reaching $714.4mn, up 51.6% from 2017”
Corporations were involved in 40% of all deals. Much of this related to the fact that as many as 20 corporate accelerations programs launched in 2017.
In addition, a new law on private-public partnerships
was passed last year to make fund creation easier. For instance, Skolkovo Venture Fund – Industrial I, which was set up in late 2017, has received contributions from Russian Railways and Russian Helicopters totalling $9.2mn.
E-commerce remains the favourite sort of tech company being targeted by investors, accounting for $194mn from the total $714mn invested, followed by transport and logistics ($151mn) and industrial tech ($89mn).
And the average size of the investments took off in 2018 rising to $49mn for investment into the later stages of tech companies development from $14mn in 2017.
This DSight report is a continuation of a series published previously by investment advisory RB Partners. Dsight also carries out contract-based research for customers on markets, companies, and investors.