The Russian ecosystem is known for its advanced technologies and wealth of engineering and tech talents; all well-positioned to bring forth breakthrough innovations in various industries. Entrepreneurial activity in the country remains strong, thanks to the ample government support and involvement from the private sector to foster innovation in the country. Despite the current volatility in the Russian market as well as the overall global scene, there are still some investment activities being recorded in Russia. In this article, we have compiled a comprehensive list of VC Funds and Angel Investors in Russia who may be the right funding partner for you in the country.
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Why Should You Raise Funds in Russia
Here are some reasons why startups should consider raising funds in Russia:
Access to Capital: The Russian venture capital market is primarily dominated by domestic investors, although some local startups have gained attraction from foreign investors. Aside from venture capital, there are also many other sources of funding available for startups in Russia, including state-owned funds, angel investors, government programs, and accelerator programs. For instance, the first half of 2022 shows increased activity of business angels investing in seed-stage startups, as well as a number of VC deals.
Growing Startup Ecosystem: There have been an increasing number of startup support programs launched by the government and the private sector to foster innovation and entrepreneurship in Russia. The developing network of startup accelerators and incubators in Russia oftentimes functions in cooperation with corporate partners to fund and support the growth of entrepreneurs. There are also various innovation centers scattered around the country, with an emphasis on hard sciences and IT areas, where entrepreneurs may work on developing solutions for major industrial firms.
Large Market Potential: As the largest country in the world by land area, Russia has a population of over 144 million people, making it the ninth most populous country in the world. Russia is also the world’s 11th largest economy, with a nominal GDP of USD 1.58 trillion. As such, the market potential in Russia is quite significant. The economy in Russia is diversified across various key industries, and the country is increasingly focusing its efforts on growing its digital economy.
Venture Capitalist Funds in Russia
The venture capitalist funds below are actively looking for investments in promising companies throughout various stages and sectors. The stages stated do not limit the possibility of getting funding if your company is at any stage other than what is listed.
Year of Inception: 2018
Stage: Pre Seed, Seed
Focus: Sector Agnostic
Notable Portfolio: Camokat, Boomerangme, GigAnt, GetFaster, Clicker
Startup Lab is a venture capital firm that invests in early-stage firms and will help startups raise funds globally. They provide initial investments of USD 10,000 to 50,000 as well as potential follow-on investments of over USD 300,000. As part of their portfolio, they will help you with fundraising, building investor relations, and negotiating deals from their EU and US investors network.
Year of Inception: 2013
Stage: Seed, Series A
Focus: Technology
Notable Portfolio:
Kamaflow is a private investment company with the goal to assist Russian tech firms in developing high-tech products in fast-growing industries. They operate a few funds, namely the NTI Venture Fund, Kama VC, and Sulak Capital. Together with funding, they delve extensively into each project and share their knowledge and other infrastructure required for rapid development in Russia, Northern Europe, and Southeast Asia.
Year of Inception: 2010
Stage: Seed, Series A, Series B, Series C
Focus: CleanTech, Industrial BioTech, IT, Telecom and Electronics
Notable Portfolio: Alion, Genomatica, Alta Devices, CardioDX, Luxim
Bright Capital is an independent VC firm that invests in companies solving challenges in the clean technology, industrial bio, telecom/electronics, and information technology sectors. They take active board seats to support the growth of companies; leveraging their deep domain expertise and diverse network of corporate and industry relations.
Year of Inception: 2012
Stage: Series A, Series B, Series C
Focus: Deep Tech
Notable Portfolio: Gett, Omio, Cityscoot, 2Can
Inventure Partners is a forward-thinking venture capital firm that invests in and assists creative entrepreneurs in launching and scaling breakthrough digital enterprises. They search for teams with unique approaches to addressing real-world issues using technology with a focus on consumer internet.
Year of Inception: 2018
Stage: Series A, Series B, Series C
Focus: Deep Tech
Notable Portfolio: StoreDot, Mel Science, Botkin AI, Titan Power Solutions
Orbita Capital Partners invests in the most disruptive innovations that are capable of significantly transforming people's lives and the future of mankind for the better. They are interested in tech firms that are based in both emerging and mature regions and service their home markets, and make use of the greatest talent and skills in Russia and throughout the world.
Year of Inception: 2010
Stage: Series A, Series B, Series C
Focus: IT
Notable Portfolio: Doctor at Work, DocDoc, Level Travel, BestDoctor, Agora
Guard Capital invests in fast-growing Russian firms with technological and intellectual properties focused on telecom and internet industries. They will assist portfolio firms in progressing from the stage of a functional business model to that of an industry leader, as well as engage in fundraising for future rounds or performing mergers and acquisitions.
Year of Inception:
Stage: Series A, Series B, Series C
Focus: Oil and Gas, Petrochemical Energy, New Materials, Alternative Energy
Notable Portfolio: Skyeer, NVI Solutions, L-Petro, Axel, Tota Systems
New Industry Ventures makes investments in early and growth-stage startups that are developing technologies and equipment for the oil and gas, petrochemical, energy, new materials and alternative energy. In particular, they are focused on modern production technologies and digital transformation in the fuel and energy complex in order to maintain sustainable global competitiveness and security of these industries.
Year of Inception: 2010
Stage: Series A, Series B, Series C
Focus: Online and Digital
Notable Portfolio: IQ Card, Vita Portal, Relevant Media, AdMoment, Teamo, CarPrice
Fastlane Ventures focus its investments on firms founded by Russian entrepreneurs building online businesses and helping propel them to the worldwide Internet market. They assist startups at all phases of growth through financial capital as well as organizational and managerial support from leading partners in all segments of the online market.
Year of Inception: 2018
Stage: Series A, Series B, Series C
Focus: Software, Logistics, Automotive
Notable Portfolio: GoComet, Paack, Byrd, Forto
To build iconic companies; is the goal of Rider Global, which seek to invest in eager disruptors with a global vision. With their vast expertise in managing and growing startups and creating IPO or exit-oriented firms from the ground up, they assist startups in achieving growth.
Year of Inception: 2016
Stage: Series B, Series C
Focus: Deep Tech
Notable Portfolio: FinalPrice, Mel Science, KisanHub, NFWare
Sistema VC focuses its investments on growth-stage tech firms deep-tech businesses that are pushing the frontiers of the industry. With their experience and network within the tech ecosystem, they support deep tech firms and link entrepreneurs to key experts and prospective partners in Russia and beyond.
Year of Inception: 2005
Stage: Pre Seed, Seed
Focus: Sector Agnostic
Notable Portfolio: YouTool, Drone Solutions, Tota, Eidstein, Picvario
Moscow Seed Fund is a venture investment development fund established by the Department of Science, Industrial Policy, and Entrepreneurship of Moscow to promote venture capital investment in Moscow. The fund provides concessional financing to early-stage high-tech startups that attract investments from the Fund's accredited investors.
Year of Inception: 2020
Stage: Pre Seed, Seed
Focus: Industry 4.0, Agro Tech, Agricultural Machinery, Energytech, Big Data & Machine Learning, Industrial Internet of Things
Notable Portfolio: Trace Air, HintEd, Pro Control, Tango Vision, Vera Voice
Kirov Group Ventures is the venture capital arm of Kirov Group, one of the largest diversified industrial companies in Russia. They invest in technological firms leading the industrial innovation in Russia and Europe. As part of their portfolio, they provide startups with the Kirovsky Zavod enterprises' testing platforms, expertise, client contacts and network, and further scaling and investment support.
Year of Inception: 2008
Stage: Series A, Series B, Series C
Focus: Cybersecurity, Cloud Services, Internet of Things, Artificial Intelligence, Big Data, Edtech, HRTech
Notable Portfolio:
Softline Venture Partners is the corporate venture arm of Softline Group, a pan-European and world-leading IT consulting company. The CVC aims to support tech startups in the fast-growing regions of Southeast Asia, MENA, and LATAM; both in the projects that have started operations in these regions or are considering them for international expansion. Aside from capital, they provide portfolio companies with expertise from their network of investors, entrepreneurs, engineers, and marketers from the tech ecosystem, as well as provide unique opportunities to scale their business model and sales through Softline's sales channels worldwide.
Angel Investors in Russia
The Angel investors listed below are part of an Angel community located throughout Russia. They may act as an individual or as a syndicate to fund projects of their preference, so these networks are the best opportunity for you to find a potential Angel with an aligned vision and interests.
Stage: Seed, Series A
Focus: Sector Agnostic
Notable Portfolio: -
Founded in 2009, the Russian Business Angels Association is an all-Russian association for early-stage venture investors, business angels, and early-stage venture funds. Through the association, entrepreneurs may find connections to other business angels network located throughout Russia.
Closing Thoughts on VCs and Angel Investors in Russia
The current volatility of the Russian economy as well as the overall worldwide context has made it challenging for startups to secure investments. However, the venture capital market in Russia is still developing, particularly with the support of the government in the form of state-owned funds, innovation hubs, and startup programs. With a strong focus on technology and innovation, startups may secure the capital they need to weather through these arduous times and come out victorious.
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