Analysts at Venture Guide have calculated that in 2024, investments in the IT industry in Russia decreased by 23% compared to the year before last. The number of transactions decreased by 17%, and the average investment volume fell from $0.9 million in 2023 to $0.7 million in 2024. In total, in 2024, 153 transactions worth $91.7 million were made in the IT startup investment market in Russia.
A decrease in investment volumes was also observed in 2023, but the decline was less significant than in 2022, when the volume of attracted funds decreased fivefold compared to 2021.
Reasons for the decline
Experts from the Voskhod venture fund attribute the decrease in investor activity to the increase in the Central Bank's key rate to 21%. In these conditions, businesspersons began to switch to safer instruments with fixed yield, which led to the disappearance of transactions involving borrowed funds. Elena Volotovskaya, Managing Director of Softline Venture Partners, believes that geopolitical tensions and sanctions limit opportunities for startups.
Who received the investments
The largest share of investments in 2024 (14 transactions worth $18.45 million) was received by developments in the field of software for business. In second place were projects in the field of Consumer Goods & Services - consumer goods and services (nine transactions worth $16.21 million), among which the developer of the Twinby dating service stands out, having received $4.8 million in late December.
In October 2024, GC Solar announced the creation of a venture fund focused on development. The volume of investments decreased year-on-year by 23% of new promising directions in the field of information security. According to the company, from 2017 to 2023, only $8 million was invested in this area in Russia. Businesspersons made only 11 transactions, mainly with the participation of Russian state and corporate funds. Solar intends to invest up to 1.1 billion Rubles in its fund.
Forecast for 2025
Experts believe that the number of active investors will increase, and confidence in the market will recover. In 2025, a slowdown in the trend towards mergers and acquisitions is expected, and investors' attention may shift to new young companies. With a decrease in the key rate at the end of 2025, a shift of funds from instruments with fixed yield to venture investments is possible.
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