VENTURE CAPITAL MARKET IN RUSSIA: INFLUENCE OF EXTERNAL ECONOMIC FACTORS AND FORECAST OF PROSPECTS FOR PROGRESS

Ekaterina UGNICH, Marina PANICHKINA, Vasili KIREEV, Sergei DEMIN, Elena ALENINA


Ekaterina Ugnich, Ph.D. (Econ.), Associate Professor, The Federal State Budget Educational Institution of Higher Professional Education Don State Technical University (Rostov-on-Don, Russian Federation)

Marina Panichkina, Ph.D. (Econ.), Associate Professor, Institute of Management of the Economic, Environmental and Social Systems of the Southern Federal University (Taganrog, Russian Federation)

Vasili Kireev, Ph.D. (Techn.), Associate Professor, National Research Nuclear University, MEPhI (Moscow Engineering and Physics Institute) (Moscow, Russian Federation)

Sergei Demin, D.Sc. (Econ.), Associate Professor, University of Finance of the Government of the Russian Federation (Moscow, Russian Federation)

Elena Alenina, Ph.D. (Econ.), Associate Professor, Moscow State Engineering University (Moscow, Russian Federation)


ABSTRACT

Venture capital is the crucial factor in the effectiveness of economic transition from national economy to the innovative path of development. In Russia, the need for the development of venture capital is circumvented primarily by an acute deficit of sources of capital for the development of the innovation process.

This article discloses the specifics of the development of the current Russian venture capital market. It is shown that despite the generated infrastructure support for the venture business and a record of success stories of venture projects behind it, the domestic venture capital market is faced with a number of problems, made apparent by the reduction in (capital) volumes in recent years. Many of these problems may be explained by a low demand for innovation on the part of the real sector of the economy, the lack of effective functional linkages among organizations supporting the venture business, low informational transparency and a fairly restricted access.

Comparison of the dynamics of the world venture capital markets and that of Russia shows that over the past two years, while there was an increase in the volume of world venture capital, the Russian venture market demonstrates the tendency to contract. This is partly due to the influence of international sanctions, economically isolating Russia from the outside world, as well as to restricting access to foreign capital amid lower oil prices. The international sanctions affected the venture capital market with outflows of investors, the devaluation of portfolios of many Russian venture funds, the prevalence of investments given to projects at later stages of realization. It is of note that the external economic environment also caused an increase in the search by the Russian venture market for better quality projects, reduced cost of design and sources, which eased the access to resources, including human.

The analysis of the existing problems of the Russian venture capital market by the ecosystem approach has shown that its sustainable development will be achieved only in case of system interaction of all parties in the development of the entrepreneurial environment, congruent with the specific characteristics of the Russian economy.

The article enumerates the prospects of development of the Russian Venture Market that are believed to be evident in the development of the mechanisms of the private and public partnerships and the system interaction of all the parties in the context of the transformation of the institutional environment that meets the needs of business of Russia.

Keywords: venture capital, venture ecosystem, international sanctions, public-private partnerships.


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