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Seed investments on the rise

0 February 2014

RUSBASE'S OPINION

The healthy state of the Russian venture market in February 2014 showed that January, which was pretty catastrophic, was a mere blip. The total amount invested was around last year’s monthly average, pre-seed and seed investments hit back and there were a number of quite serious investments in companies and exits from them. 

Our data suggests that interest in Russian e-commerce startups has started to gradually fall, possibly as a result of uncertainty surrounding the Russian economy. Analytic research backs this up, with a number of experts suggesting that the growth rate of e-commerce in Russia may have peaked. 

At the same time, multimedia and software projects continue to raise funding, and in February were involved in around 50% of the deals made. 



SIGNIFICANT DEALS


CityAds

Klever Internet Investments Ltd 

$5 million

CityAds Media, which operates in Russia, the EU, Ukraine and Brazil, sold a minority stake in the company to Klever. It is one of the leaders in the domestic  CPA-advertising sector, with a 5-8% market share that makes it one of the top-4 players (along with Admitad, ActionPay and AD1). The funding will be used to take the project into new markets. 


Mango Telecom

Intel Capital

$10 million

Mango Telecom, a Russian cloud business app creator, raised $10 million from Intel Capital. The investors were impressed by the firm’s strong position in the Russian SaaS sector, and are convinced that despite its age (it was founded in 2000) it still has great potential to grow.


Aviasales

iTech Capital

$10 million

Aviasales, an international online travel company, raised $10 million from iTech Capital. In Russia Aviasales.ru is among the leading flights aggregators, while abroad it goes by the name “JetRadar”. It is one of the few profitable companies in the Russian online travel sector, and it’s growing at more than 100% per year.


FUND OF THE MONTH


Klever Internet Investments Ltd 

Klever Internet Ivestments Limited (KIIL) was founded at the start of 2012 by an international investment team aiming to break into fast growing markets. KIIL invests in companies at different stages, seeking out projects with strong teams, a proven business model and a quality product. Its portfolio currently includes CityAds, Workle, Choister and MoeDelo.


PERSON OF THE MONTH


Ilya Perekopski

Former vice-president of VK.com Ilya Perekolski, who left the social network at the start of 2014, became an adviser to UCP, which holds a 48% stake in VK. On departing he accused founder Pavel Durov and other major shareholders of violations. His ‘defection’ to the other side in the ongoing conflict between UCP and Mail.ru Group is particularly important as he was a key figure in the project’s business development and finance. 


FAIL OF THE MONTH 


Neverest

Neverest.ru, a ‘copycat’ online sports retailer similar to Swedish project Faction, was shut down despite having an audience of 2 million users per month. They had got together a team of experienced managers, including a marketing strategist from Cirque du Soleil, but it turned out that the $6 million already invested was not enough to secure the project’s long term growth. 

DISCLAIMER



The data provided in the current document is gathered both from public and private sources. RusBase's analysts produce these reports based on current coverage of deals in the media, social networks and blogs. Some information is also obtained via tips from industry insiders.

These analytics (including open source data) should not be the sole source of information used for making investment decisions, securing rounds or dealing with any other issues without further clarification from the business owners or general managers. You may purchase verified data for deal-books and market insights, produced especially upon a client's request (see more details below). If you have any additional questions, comments or require any explanation, please feel free to contact us at analytics@startupafisha.ru.

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