Online guide to the Russian tech market
Home trends

A hot summer for the Russian venture market

0 June 2014

RUSBASE'S OPINION

June 2014 saw no less than 4 exits for Russian venture funds - the highest number ever recorded in a single month. 

The sale of Delivery Club to German startup FoodPanda, funded by the Rocket Internet business incubator, proved that foreign investors and entrepreneurs are still willing to invest significant sums in Russia, despite current political and economic uncertainty.

Yandex’s acquisition of auto.ru and the subsequent shutting down of a similar project run by the “Delovoy Mir” (Business World) holding showed the true value of this type of media asset in Russia.

Two ‘classic cases’ featuring investments in startups away from Moscow showed that there is room for manoeuvre in the Russian venture sector. In the first, a fund took majority control of Kazan-based startup Moy Kabinet, while in the second a fund managed to sell its stake back to the founders at a 1000% profit.

As well as exits, June also saw an increase in investments, mainly thanks to state funded accelerator FRII, which welcomed its third intake of early stage projects. 



SIGNIFICANT DEALS


.

Startup - auto.ru
Investment - $175 million
Investor - Yandex

Search giant Yandex acquired top motoring classified ads site auto.ru. Yandex is planning to develop the service, which will continue to operate under the same name. Experts reckon that the acquisition will help Yandex to improve the results it offers for general car-related queries, and also make its auto.yandex.ru service better. The deal, worth $170-175 million, will be concluded by the end of the year.


.

Startup - Delivery Club
Investment - $50 million
Investors - FoodPanda, Rocket Internet

RocketInternet-owned German food delivery service FoodPanda acquired its Russian equivalent Delivery Club. The $50 million that FoodPanda paid for the startup came from RocketInternet, and allowed Russian fund AddVenture to make a very profitable exit. The new owners are yet to announce their plans for the startup.


.

Startup - Knopka Zhizni (Life Button)
Investment - $1.3 million
Investor - FRII

Moscow accelerator FRII invested $1.3 million in Life Button, an emergency help service for the elderly. This Round B investment follows previous investments from the “IT Group” and business angels. For FRII it is another investment in an already-established project.


FUND OF THE MONTH


Vaizra Capital

The fund, which belongs to VK.com cofounders Vyacheslav Mirilashvili and Lev Leviev, announced its first major deal in June - an investment in online travel startup Ostrovok. The investors also announced plans to spend $30 million on a business park in St Petersburg which will host Selectel, 1PTV, SiliconRus and a number of other projects connected to Mirilashvili and Leviev.


PERSON OF THE MONTH


Mark Shmulevich

The former deputy communications minister with responsibility for the IT sector left his government post and took on a new role at Acronis, where he will work as the strategic director. Shmulevich has previously worked with Acronis boss Sergey Beloussov at the Russian Quantum Centre, where he led a research program and was also responsible for investment fund Runa Capital’s government relations.


FAIL OF THE MONTH 


auto.dmir.ru

Business holding Delovoy Mir chose to freeze its motoring classified ads service in the wake of Yandex’s purchase of auto.ru, deciding that there was little sense in competing with Russia’s biggest internet company in the sector. It is unclear whether the service will ever be restarted.


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@rusbase.vc.

More on the topic

comments powered by Disqus

Subscribe

All important news and analytics on Russian venture capital market weekly in your inbox

via social network

Facebook
Google
Twitter
Linked in
Vkontakte