Russia’s Startup Investment Landscape: Growth, Funds and IPO Prospects
Russia is poised for a surge in startup activity, with more ventures and a rising roster of funds and angel investors prepared to fuel growth. In a broad briefing on the market, Alexander Vedyakhin, the first deputy chairman of Sberbank’s board, outlined the momentum shaping the ecosystem.
During the final phase of the Sber500 international accelerator for technology startups, teams from the Russian Federation, Armenia, Turkey, Israel and China attracted investment offers totaling roughly 1 billion rubles.
That reminder underscores a shared pattern: seven of the world’s ten largest companies were once startups themselves a generation ago, including Apple, Amazon and Tesla.
Vedyakhin emphasized the Russian market’s substantial growth potential and its capacity to attract both domestic and international capital.
He argued that elevating Russia’s enterprise framework toward the level seen in economies like Brazil could trigger a thirtyfold rise in corporate investments, unlocking larger-scale funding for local ventures.
He described the emergence of new funds as a positive sign, noting that six new venture funds had launched in Russia during the first half of 2024, expanding the investment landscape for startups.
He highlighted the maturation of the IPO market, forecasting around 15 public listings in 2024 and more than 90 companies eyeing public debuts in the coming years.
Additionally, the executive noted that interest rates won’t stay high forever; as inflation eases, rates are expected to fall, potentially delivering long-term returns of 20-30 percent, and even 40 percent for select opportunities.
He stressed the stabilizing role of the state across the economic cycle. In DeepTech projects, investors often hesitate to fund the earliest stages, which is why government grants risk supporting ventures that may best align with public interests in the long run.
He added that on average, about one in three startups worldwide has integrated artificial intelligence in some form, reflecting a broad trend toward AI-enabled innovation.
When discussing investors from the Global South, he noted growing interest in Russia’s startup scene and its potential for cross-border collaboration.
“We see investors from the Global South taking equity in Russian startup subsidiaries as they expand into new markets,” Vedyakhin stated.