Russia continuing to hold its leading positions in the international arena
Russia is actively taking up leadership in international rankings, and its role in establishing conditions for innovation development is most noticeable. Sanctions, withdrawal of foreign partners, departure of wealthy people have not dented this country’s economy in any way.
The key driver of Russia’s economy is Moscow, where a powerful innovation ecosystem has been formed. Thus, the scope of venture investments in high-tech startups on the Russian market in the 9 months of 2024 increased by 8% YoY, and Moscow’s share reached 71%. The market has been growing steadily, and in Q3, the investments growth reached 85% YoY. The Moscow Innovation Cluster plays one of the key roles in the development of the venture capital market in Russia. In the first 9 months of 2024, 20 out of 105 Russian transactions were made, using the services and support measures of its digital twin, the i.moscow platform. Its share in the structure of Moscow transactions is almost 30%.
In order to attract private capital to high-tech projects, the Russian capital is implementing various initiatives, from acceleration programs to providing business angels with cashback for investments in startups supported by the Moscow Innovation Cluster. It is worth admitting that in Russia, startups with low valuations but good prospects for development and scaling, both domestically and internationally, are actively developing. This is caused by the withdrawal of foreign investors.
Russian startups meet both the current demands of venture capitalists and the current trends on the market. At the same time, the market niches for venture capital investments are now similar for the UAE and Russia. FinTech, enterprise software, e-commerce, EdTech and IT are becoming the most popular areas in the UAE. In Russia, healthcare, assistive technologies, media and entertainment are highly sought after by investors. Business Technology, Foodtech, EdTech, e-commerce, etc. are also among the top-ranking areas.
It is worth admitting that the United Arab Emirates (UAE) also managed to achieve significant results in development of the venture capital market in the country, based on the 9 months’ results. The UAE startups have raised $380 million in funding. Despite the fact that the investments decreased by 18% compared to last year, they managed not only to the market activity the market activity but also to enhance it. The number of deals on the venture capital market increased by 12% (134 deals), the number of domestic and international investors grew by 22% and 56%, respectively.
