Retrospective analysis of the Russian venture capital market

Abstract

Subject. The article investigates the Russian venture capital market. Objectives. The purpose is to underpin the advantages of using venture funds in financing innovations based on a retrospective analysis of the Russian venture capital market. Methods. The study employs general scientific and special methods of scientific cognition, such as systems and comparative analysis, functional-structural and retrospective analysis. Results. I analyzed the venture capital market in Russia for 2017–2022 and defined the main directions of the venture financing growth, unveiled the features of the use of venture capital, and specified the problematic moments of its development. Conclusions. The retrospective analysis of the Russian venture capital market for 2017–2022 demonstrated the need for further State support to venture activities to create conditions for a technological breakthrough of the domestic economic system, the relevance of replacing imported technologies and products with domestic ones. The paper determines that under the influence of external threats, private investors have become new drivers of the Russian venture capital market. Thus, most of the transactions were made with the participation of business angels, 70% of which are syndicated transactions, including those involving professional communities of business angels. In the first half of 2022, there was an increase in the share of early-stage transactions. This is a positive trend, as it will enable investors to enhance the technological independence of Russia through investing in promising projects.