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Software projects squeeze out e-commerce and media

0 November 2013

RUSBASE'S OPINION

November 2013 was a relatively quiet month for the Russian venture market, with 31% fewer deals than in October. This is more or less what we would have expected - Autumn usually sees a lot of deals, with projects that were founded at the start of the year attracting a first investment round, or startups that have already raised funding during the last 9-12 months securing additional funding. 

As well as an overall decline in the number of deals, another noticeable trend was the ongoing popularity of the software sector. For the second month running the sector attracted more deals than e-commerce and ensured that seed investors’ attention remained oriented towards tech. 

The third most popular sector in November was fintech, with a range of finance-related tech projects securing investment. This is happening against a background of turbulence in the general finance sector, as new startups try to win the trust and custom of clients from traditional banks and payment service providers. 

Below you can see an infographic analysis of the Russian venture market in November 2013, brought to life by GoVisual



SIGNIFICANT DEALS


Federal Finance Group

Investor: Prostor Capital and Flint Capital

$3 million

Federal Finance Group, which operates CreditCardsOnline.ru, Platiza.ru and the National Internet Passport Bureau, raised investment from two major Russian funds - Prostor Capital and Flint Capital. The group claim that the National Internet Passport Bureau (FF.ru) is the first Russian project that fully solves the problem of virtual anonymity, through the issuing of internet passports and quick video identification services. CreditCardsOnline.ru provides information for consumers about all the different credit card options offered by Russian banks, while Platiza.ru offers microloans online. 


Acumatica

Investors: Almaz Capital, Runa Capital

$10 million

Cloud ERP (Enterprise Resource Planning) solutions system Acumatica completed a third investment round led by Almaz Capital and Runa Capital. The project is growing at a rate of 350% a year and is aiming to become the leading global provider of cloud ERP solutions for small and medium sized businesses. According to its CEO, Acumatica is actively expanding its presence in the Asian and European markets, where it is the only cloud ERP-solutions service that meets the needs of businesses from different countries. 


BeSmart

Investor: Education Matrix

$4 million

Education marketplace BeSmart, which sells expert content and offers webinars on its own social network, raised $4 million from Hong Kong fund Education Matrix. The investors hope that the project, which positions itself as Russia first online marketplace for paid educational content, could generate up to $15 million a year from internet users that want to gain access to experts in various fields. 


FUND OF THE MONTH


I2BF Global Ventures

International fund I2BF Global Ventures launched I2BF Digital, which will focus on seed and Series A  projects in IT and at the junction between energy and electronics. The fund, which is focused on the US, Russia and South Korea, has already added 6 projects to its portfolio. 


PERSON OF THE MONTH


Anatoly Chubais

In November the head of Russian state tech corporation Rusnano opened a new nanotechnology centre in Zelenograd, a town on the outskirts of Moscow. It will be home to microelectronics and electronics manufacturers producing devices for the domestic and international markets. So far 16 projects have been accepted and a further 20 are being considered, including some biotech and cleantech projects. A budget of $60 million has been allotted to the centre, of which Rusnano will provide a little over half. Other backers of the project are the Zelenograd Innovative-Technology Centre and the National Research University of Electronic Technology (MIET). 


FAIL OF THE MONTH 


Talkbits

Runa Capital-backed project Talkbits, a voice-based social network described as “Twitter with voice messages”, has been effectively shut down after failing to attract enough users. The team, including CEO Olga Steidl, have moved on to new projects. Signs of trouble were apparent as early as Spring this year, when users took to social networks to discuss why Talkbits was developing so slowly.  


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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