J’son and Partners Consulting presents the main results of venture capital market analysis in Russia and in the world.

1. J’son and Partners Consulting presents the main results of venture capital market analysis in Russia
and in the world.
In the research presented the comprehensive analysis of venture capital market infrastructure
development in Russia and in the world. Differences are showed between regions and provided venture
capital market evaluations by value of transactions and by number of deals closed.
General market structure and key market players
According to J’Son & Partners Consulting, USA in perspective will keep the leading position until 2015
among the venture capital market players. In the meantime Chinese market will grow very fast.
Fig.1. Volume of venture investments in the leading countries, 2006-2012, bln.USD
Source: J’son & Partners Consulting
Taking into the consideration the attractiveness of industries; software, biotechnologies and media
projects still are the most attractive for the U.S. venture capital funds and present more than half of all
projects.
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credit to the source of information – J’son & Partners Consulting.
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2. Fig.2. Deals structure by industries in US market, 2012
Source: J’son & Partners Consulting
Despite of the fact that the American venture capital market is one of the most perspective markets, the
number of venture funds for the last 10 years drastically decreased. Same trend is in Europe – for the
last 12 years the number of funds lowered for 63%.
The infrastructure of venture capital market
Different platforms designed to support venture capital and venture entrepreneurs are analyzed in the
full report.
P ublic institutes for venture business developm ent
Main types of public and quasi-public organizations that support applied innovations:
Network «center of excellence»;
Centers for technology transfers;
Seed funds;
Business-incubators;
Public venture funds, and funds’ funds
Universal institutes supporting innovations
Transnational corporations
Large corporations can enter in innovative project by several means:
Direct investments. The most risky, the possibility to receive the highest economic gain.
Creation of small innovative companies by the corporation itself.
Corporation can enter the operating venture fund, with a needed specialization
The most popular examples of corporations that invest in the venture projects:
Intel Capital;
Google Ventures;
Seed Fund Microsoft.
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credit to the source of information – J’son & Partners Consulting.
™ J’son & Partners [registered trade mark].
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3. Technoparks, incubators, accelerators, university and research environm ent
Platforms for the development of innovative projects are:
Technological centers (clusters);
Innovation and Technology centers;
Technoparks;
Business Incubators;
Business Accelerators.
The key tasks differ by object type, but in general are as follows:
Help to receive the access to the most available offices and industry spaces;
Informational support;
Help in search of partners and providing services for “supporting” realization of innovative
projects
The expansion of potential range of investors;
Profile specialists’ support;
Financial support on the early stages of innovative projects development
Angel investors: num ber and dynam ic of business-angels, industries for
investing, volum es of financing
«Angel investors» or «business-angels» called private investors who are investing in start-ups at the
earliest stages with the expectation of high returns on investment compared to traditional investment
opportunities in the stock market.
The most active associations of business angels are the representatives of the United States, often
investing in start-ups in Silicon Valley. Leaders in the number of transactions may be stated as follows:
New York Angels, Tech Coast Angels, Launchpad Venture.
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credit to the source of information – J’son & Partners Consulting.
™ J’son & Partners [registered trade mark].
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4. Fig.3. Venture investments structure in USA
Source: J’son & Partners Consulting
Online projects are the most popular sectors for investment (about 30% of the total number of
transactions). They are the least capital intensive, thus have the potential of extremely rapid growth,
enables business angel expect a positive effect on their investment in the short term (1-3 years).
Commonly used criteria in the classification of management companies is the total capitalization value of
private equity (venture) investments under their control, which allows you to divide the management
companies into three groups: small, medium and large.
Fig.4. Dynamic of number of managing companies by capitalization, 2010-2015
Source:IDC, J’son & Partners Consulting
Since 2006, the number of venture capital funds has increased threefold with a CAGR of 20%. During
the same period, the total capitalization of the venture capital funds (including liquidated) increased
almost fivefold.
Copyright © 2013, J’son & Partners Consulting. Media can use any text, diagrams and data contained in this market review only with giving
credit to the source of information – J’son & Partners Consulting.
™ J’son & Partners [registered trade mark].
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5. Since 2009, steady increase noticed in Russia in both the number of transactions in the field of venture
capital funds and their volume: In 2009, the total number of transactions was less than 50, and the total
volume was $ 124 million, and in 2012 there were more than 130 deals for $ 397 million in 2015, the
trend is expected to continue to increase investment in the IT sector.
The structure of venture capital investments in the Russian Federation
The total venture capital investment volume in 2012 was $ 397 million, of which about 60 % were in the
telecommunication sector.
Dynamics of venture capital investments volume in 2011-2012 shows a “jump” increase in the total
volume of investments in the agricultural sector and an equally sharp drop in investments in the financial
services industry. Also worth attention the increase and a half times the expand of the volume of
investments in the ICT sector, in which the largest increase in the number of transactions and the
volume of attracted venture capital funds occurred in the sector of mobile applications and social
networking. This is due to saturation of the portfolio companies in the sector of electronic commerce
and the need to increase industry diversification.
Fig.5. Venture capital funds investments structure by economy sectors, by volume of
investments, 2012
Source: RVC, J’son & Partners Consulting
The interest of investors and volume of financing deals in IT sector still will be sustainable in 2013.
Growth trend for investor interest and funding transactions in the IT sector will continue in 2013.
According to J'Son & Partners Consulting, in 2013, growth in the number of transactions of venture
capital industry in the IT sector may slow down. It is expected to shift the focus of investors from ecommerce to cloud technology.
Throughout this period, investors in Russia are the main driving force behind the development of the
Russian market of venture capital. At the same time, an increase in the number of transactions involving
foreign investors have been noticed, the most active investors are in the U.S. and Germany. In 2011 6
transactions were entered into with the investors from France, Canada, Sweden and Switzerland, as well
as 20 transactions involving investors registered in offshore jurisdictions (Cyprus, the Netherlands, Virgin
Islands). The interest in Russian start-ups from Asian investors is growing (in 2012 recorded the
transactions with the Japanese venture capital funds) in comparison with 2011.
Copyright © 2013, J’son & Partners Consulting. Media can use any text, diagrams and data contained in this market review only with giving
credit to the source of information – J’son & Partners Consulting.
™ J’son & Partners [registered trade mark].
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6. Detailed results of the research are presented in the full version of the report: “R ating of
venture capital funds” (90 p.)
1.
2.
Methodology
The world market of venture capital funds
2.1.
General market structure and key players
2.2.
Public institutions of venture business development
2.3.
The role of transnational corporations
2.4.
Infrastructure: technology parks, incubators, accelerators, university and
research environment
2.5.
Venture companies and government funds
3.
Government regulation and stimulation of venture capital funds
3.1.
The regulatory environment
3.2. Tax incentives
3.3. Development of technoparks’ and incubators’ infrastructure
3.4. The development of the information space to support and promote
innovation, promotion of education in the field of innovation
3.5. Other methods
4.
New technological trends in Russia and in the world
4.1.
ICT
4.2.
Electric Power industry
4.3.
Biotechnology
4.4.
Transport
5.
Classification of management companies in Russian Federation
6.
Trends, tendencies and dynamics of the Russian market of venture
capital funds in 2010-2015
7.
The structure of investments of venture capital funds
7.1.
By sectors of the Russian economy
7.2.
by investment stages
7.3.
by geolocation of deals
8.
The influence of business angels
9.
Infrastructure: technology parks, incubators, accelerators, university
and research environment
9.1.
Technoparks
9.2.
Business incubators
10.
RVC. Influence on the market
11.
Russian venture funds rating
12. Profiles of the venture capital funds market leaders
List of companies mentioned in the report
Copyright © 2013, J’son & Partners Consulting. Media can use any text, diagrams and data contained in this market review only with giving
credit to the source of information – J’son & Partners Consulting.
™ J’son & Partners [registered trade mark].
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7. List of Figures
Fig 1. Volume of venture investments in the leading countries, 2006-2012, bln.USD
Fig 2. Number of deals by stages in USA, units
Fig 3. Deals structure by industries on USA market
Fig 4. Dynamics of venture capital funds number in USA
Fig 5. Number of venture capital funds in Europe in 1999 and 2011
Fig 6. Return of investments in Europe, 2012
Fig 7. The structure of the cluster and the interaction of innovation infrastructure facilities
Fig 8. Geolocation: technoparks and remoteness form the city in the world
Fig 9. Geography of companies coming into the parks, world statistics
Fig 10. Requirements for companies – for candidates to be included in technopark
Fig 11. The total volume of venture capital investments, bln. USD
Fig 12. «Angel investments» by sectors, classification by number of deals, 2012
Fig 13. Dynamics of “big data” market volume, 2012 – 2017, bln.USD
Fig 14. Dynamics of changes in the average speed of mobile network connections. The average speed of
the mobile channel, kbit / s.
Fig 15. Segmentation of revenue from VoIP by region, the forecast for 2014
Fig 16. Dynamics of investment volumes in alternative energy sources, 2010-2015, bln. USD
Fig 17. World leaders by the biotechnology market volume, 2012, bln. USD
Fig 18. Dynamic of number of managing companies by capitalization, 2010-2015
Fig 19. Number of venture capital funds in Russian Federation
Fig 20. Number of venture capital funds in Russian Federation
Fig 21. Number of deals of venture capital funds
Fig 22 Volume of venture capital funds deals, mln. USD
Fig 23. Average volume of venture capital funds deals, mln. USD
Fig 24. Venture capital funds investments structure by economy sectors, by volume of investments, 2012
Fig 25. Venture capital funds investments structure by economy sectors, by number of deals, 2012
Fig 26. Average deal volume by industries, mln. USD
Fig 27. Venture capital funds investments structure in IT by sub-sectors, classification by deals volume,
2012, mln.USD
Fig 28. Dynamics of venture deals in IT-sector in 2011-2015, mln.USD
Fig 29. Diversification of deals by investing stages
Fig 30. Investment structure in ICT sector in 2012
Fig 31. Number of deals by geolocation of investors, % of the total number of deals, 2010-2015
List of tables
Table
Table
Table
Table
Table
Table
Table
1. Typology of development institutions
2. Diversification of technoparks of certain type by geolocation
3. Rating of incubators/accelerators
4 The definition of venture capital financing
5. Classification of venture funds by way of investing
6. Venture capital funds-leaders
7. The largest associations of business angels
Copyright © 2013, J’son & Partners Consulting. Media can use any text, diagrams and data contained in this market review only with giving
credit to the source of information – J’son & Partners Consulting.
™ J’son & Partners [registered trade mark].
7

8. List of companies mentioned in the Report
500 Startups
ABI Research
ABRT
Accel Partners
Adobe Systems
Alliance of Angels
Almaz Capital
Almaz Capital Fund
AngelPad
Apple Inc.
Balderton Capital
Bessemer Venture Partners
Blu Homes
Braemar Energy Ventures
Bright Capital
Brightpath Capital Partners
British Venture Capital
Association
Centers of Excellence
Central Texas Angel Network
Common Angels
Doll Capital Management
Draper Fisher Jurveston
DreamIt Ventures
e.ventures
Earlybird Venture Capital
European Venture Capital
Association
Excelerate Labs
Fast Lane Ventures
Flag Capital
Fleming Family & Partners
FONTEC
Global Mobile Supplier
Association
Golden Seeds
Google Ventures
Hewlett-Packard
IDC
IMI.VC
Index Ventures
Insight Venture Partners
In-Stat
Intel Capital
Intel Capital
Investors’ Circle
IO Data Centers
iTech Capital
JP Morgan Chase
Khosla Ventures
Kicklabs
Kite Ventures
Kleiner Perkins Caufield & Byers
Launchpad LA
Launchpad Venture
Maine Angels
Markets and Markets
Matrix Partners
Microsoft
Mint Capital
Morgan Stanley
New York Angels
Phenomen Ventures
Prostor Capital
Prostor Capital
Runa Capital
ru-Net Ventures
Russia Partners
Saif Partners
Sand Hill Angels
SeedCamp
Sequoia Capital
SITRA
Skagen Group
Sofinnova Partners
Softbank
Softline Venture Partners
Softline Ventures
Tech Coast Angels
Tech Wildcatters
TechNexus
TechStars
TEKES
The European Business &
Innovation Centers Network
VentureLab
Vesna Investment
VTT
Y Combinator
Yahoo!
Yozma
Zoom Capital
Business Incubator of the
Academy of National Economy
Business Incubator of the HSE
Business Incubator MSU
Incubator "Ingria"
IT-park
Korea Institute of Science and
Technology KAIST
Korea Research Institute of
Electronics and
Telecommunications ETRI
Kuzbass technopark
RVC, JSC
Technopark Mrodovia
Technopark
Novosibirsky
Academcity
Technopolice «Khimgrad»
Funds SBIC
____________________________________________________________________________
The newsletter was prepared by the J'son & Partners Consulting Company. We exert every effort to provide actual and forecasting data
representing the situation in full and available at the time of the publication of the material. J'son & Partners Consulting reserves the right of
revising the data after publication of some new official information by individual players.
CONTACT FOR MORE INFORMATION:
Pavel Ermolich
Commercial Director
Pavel@json.ru
www.json.ru
Copyright © 2013, J’son & Partners Consulting. Media can use any text, diagrams and data contained in this market review only with giving
credit to the source of information – J’son & Partners Consulting.
™ J’son & Partners [registered trade mark].
8