WHY RUSSIA

SUCCESS STORIES

Not that long ago the Russian startup market was largely overlooked by the international venture community. However, while the world was looking the other way improved infrastructure and a better legal framework for business, coupled with increased internet penetration and prolonged economic growth, made the environment for startups much more favourable. Even more importantly, some very impressive companies were developing, particularly in the IT-sector. When two of them, Mail.ru and Yandex, held impressive IPOs in 2010 and 2011, raising $912m and $1.3 billion respectively, the world finally started waking up to the enormous potential of the Russian venture market. Here's some examples of impressive Russian startups you've probably heard of, and also some which you haven't yet...

FIGURES

HUMAN CAPITAL

Russia boasts some of the greatest engineering and scientific talent in the world. For many years the only outlet for this talent was an academic career in an obscure regional scientific institute which led to large scale brain drain to universities, corporations and startups in Western Europe and the United States. This is now changing, especially in the IT sphere as Russia has now overtaken all European countries with 58 million monthly internet users, and less than 50% penetration.

TAX SYSTEM

Currently the Russian business community is actively involved in discussing Russia's innovation strategy which is set up to 2020 and is considered as a basis for consistent state policy, at the very least, in the following areas: nurture, support and stimulation of the talent property; establishment and support of the required infrastructure; improvement in the legislative framework; reduction in administrative (tax, customs) barriers; provision of tax incentives; creation of the prerequisites and demand for innovative products.