In March 2022, the field of angel investors ready to fund startups reached 1,903. An interview with Avito Services reported by socialbites.ca indicated a 20% rise from March of the previous year. Simultaneously, interest in this kind of advertising surged, with a year‑over‑year increase of 53% among service users in March.
who are business angels
A business angel is a private investor who provides not only capital but also expertise to early‑stage companies and entrepreneurs. Unlike typical venture funds, these investors put their own money at risk. The concept arrived in Russia from the United States, and the term traces back to the 20th century when Broadway sponsors in America were nicknamed business angels. In the early days, many prominent firms benefited from angel backing, including Amazon, Google, Yahoo, and Intel.
According to the European Network of Business Angels, the most sought‑after sectors are information technology, healthcare and biotechnology, enterprise software, consumer goods and services, entertainment and media, and home electronics and computer components.
In recent years, this model has also gained traction in Russia as well.
“The most promising niches for Russian business angels lie in IT, which also enjoys strong government tax incentives. Other attractive areas include consumer products and pharmaceuticals,” commented Sergey Suverov, investment strategist at Arikapital Management.
Last week, online car booking and daily rental service Getarent secured 10 million rubles from private investors Vadim Karyaev and Evgeny Egorov, as reported by Forbes and Rusbase. The funds will support scaling and customer acquisition, with expansion plans across St. Petersburg, Sochi, Anapa, and additional cities.
In early April, two more ventures attracted investments. The Anabar marketplace for sales management raised 65 million rubles from First Bit IT integrator and 13 business angels. Yakut developer Sciberia, which built a neural network to analyze medical images, secured 150 million rubles from the Voskhod fund created by the Interros investment company of billionaire Vladimir Potanin.
“It replaces western investors”
Industry observers confirmed Avito Services’ findings about rising activity among business angels. Analysts attributed the shift to sanctions tied to the Ukraine conflict, which reduced opportunities for Western capital.
“Western angels have diminished, and valuations have pulled back. Cross‑border investing has cooled. That creates space for domestic and regional investors to step up,” noted Mikhail Kuzin, investment director at BCS World of Investments.
Suverov agreed, noting a wave of freelance opportunities that emerged as Western players pulled back. “There are robust infrastructures for business, plenty of skilled personnel, and limited ability to transfer funds abroad. That makes Russian angels an appealing option,” he said.
Mark Sherman, managing partner of Svoboda Agency, observed that early on business angels backed dozens of companies. “A few projects failed, but investors are now scanning the market again. Some products faced marketing hurdles from established brands, yet the underlying demand hasn’t vanished. Capital‑raising remains a complex process. Companies must demonstrate a working prototype and meaningful income, sometimes in the millions of rubles, before venture funds even consider a breakthrough investment. Many projects will get a second chance,” Sherman explained.
Anastasia Uskova, CEO of the Rocket Humans technology group, emphasized that founders are willing to negotiate discount terms for selling shares, while investors aim to seize favorable deals before missing out.
Vladislav Zhuravlev, Legal Advisor at the Soviet legal group, cautioned about possible scams in the market. “The number of fraudulent programs could rise. New entrepreneurs should verify the organization behind the business angel, check PSRN and TIN in public registers such as the Unified State Register of Legal Entities and SPARK, and scrutinize founding dates, founders, employee counts, and any ongoing lawsuits. If ideas aren’t protected by patent or properly assigned, ownership can be disputed,” he said.
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