The Russian Venture Capital Market

Many us have heard don’t borrow money from family or go into business with friends. In the case of Tactus fund-raising, they faced many financial obstacles in raising their capital. Craig and Micah did the right thing by not obtaining funds from friends and family at first. One of the major reasons new startup companies fail is because they undercapitalize. A startup company must have enough capital to get establish and stay afloat through the slow

For every business to be effective background knowledge on venture capital and resource acquisition is vital amongst investors and entrepreneurs. In the US for instance, the venture capital market has been made available for startups in the process of ensuring inclusive technologically advanced businesses. This process has facilitated the introduction of incubators as well as the angel investor’s networks. Currently, the VCs have dominated the business industry enabling the funding of the developmental process and growth of various businesses. Similarly, the Small Business Advocate (SBA) is an example of approaches used to provide funding to businesses today (Reichert, 2007). This paper provides comprehensive analysis on various financial

Venture capitalists who cared for the computer industry right when it was starting were well know because of their risk taking and for their hands-on operating experience, but things are different in today’s age. Today's venture capitalists are more cautious and timid than the VC risk takers in the past. These not so timid venture capitalists have created a new niche in the capital markets. They are the foundation for meeting the needs of investors looking for high returns,

111 people control 19% of all household wealth in Russia (Breslow, 2015). The centrally planned economy realigned to a capitalist order based on markets, private property and free enterprise. The ‘oligarchs’ or known as Russia’s richest 1%, own about 30% of the entire populations personal assets (Aven, 2013). A massive disparity in wealth that is purported to have held back Russia’s economic growth from its true potential (Aven,

There are several aspects of Russian society that can threaten businesses operating in this nation. Russian participation in the European Social Survey determined they are individuals characterized by a high degree of caution and more pronounced need to be protected by a strong state (Magun & Rudnev, 2010). The strong state applies to multiple facets of Russian society that leads to concerns about property rights and the protection of other assets. There is pervasive government intrusion into business that affects leaders of Russian companies. Economic advisors warned of a danger to economic growth comes from creation of state corporations with a difficulty facing business leaders being uncertainties from a powerful, hostile Russian government (McCarthy, Puffer, May, Ledgerwood, & Stewart, 2008). In certain areas the state hinders economic

The financial crisis wreaked much havoc on so many new businesses that were planning on selling stocks to the public for future growth and development (Ante, 2008). Ground-breaking companies are taking on much risk since they can no longer seek help from investors in the populace, and they are finding it even harder to be snapped up in procurement (Ante, 2008). The number of “venture-backed” companies

This paper aims to analyze and describe the influence and the scale of the corruption on business environment in Russia, and the consequences for the society. The paper will start by examining “The Collapse of The Soviet Union and The Rise of Russia” as the prerequisite for the escalation of the corruption among Government officials, the establishment of oligarchic structures and examining the role of domestic business and foreign investors regarding their contribution in corruption practices. Then it will discuss the historical trends of the corruption’s phenomenon, whether the

The Russian economy is largely founded on the repercussions of the former political and social parties that held power for so many years. Russia’s economy has been one of centralized focus and production for decades. From investment, production, and consumption, the

1. [Financing Concepts] The following ventures are at different stages in their life cycles. Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

Since the economic crisis of 2008 and the collapse of financial institutions, entrepreneurs are clamoring for alternative financing choices and investors yearn for investment options with the potential for greater returns. With this in mind, the President and Congress enacted the Jumpstart Our Business Startups (JOBS) Act of 2012 to grow entrepreneurship and provide investors with opportunities to fund private companies in exchange for equity. The partners at Group Capital, a Securities and Exchange Commission (SEC) and Financial Industry Regulatory Authority (FINRA) registered broker-dealer, lamented that the options available for innovation are minimal until they discovered equity

Russia’s economy is largely based on the production of oil, natural gas and metals like steel and aluminum. Swings in global prices on these exported goods make the economy vulnerable to boom and bust cycles. Although Russia underwent a 2-year recession from 2014 to 2016, the global growth and trade started to strengthen at the end of 2016 and the economy showed signs of overcoming the recession caused by the shocks of low oil prices and economic sanctions. The economy is mostly based on a market-based system after the collapse of the Soviet Union. With a high concentration of wealth in officials’ hands due to a mostly privatized industry with notable exceptions in the energy, transportation, banking, and defense-related sectors.

The first event that changed the landscape in the venture capital business took place in 1970. During this year the Department of Labor changed the rules and allowed pension funds to invest their money in venture capital funds. The second event took place in 1978, when a new law was passed in Congress that allowed for capital gains to be taxed at a lower rate than regular income. These two events helped to take the venture capital business from the hands of a few wealthy families in the United States to large institutional investors, thus releasing large amounts of risk capital ready to be poured into startup companies. Additionally, a lower tax rate for capital gains motivated all kinds of investors to try their hand at entrepreneurship, thus increasing the cash flow into small startup companies. Moreover, a large percentage of the risk capital available during the 1970’s

Over the past ten years, Russia was seeing economic growth. One of the most important indicators for a county is the GDP gross domestic product. It measures the total economic production for a country and represents the value of goods and services produced by the economy (“Economic Indicators,” 2003). Despite a slight dip from 2013-2014 and a bit of a dive during the recession years Russia’s GDP has skyrocketed over the last 10 years. Government action had unemployment in Russia at an all decade low and wages were up though that had resulted in a worker shortage. This indicator shows that Russia was on a strong growth path and was set to have a major impact on the 21st

The period 1995 to mid-1997 was boom time for Russia’s financial markets. The value of the Russian bonds and stocks soared, with the participation of foreigners in these asset markets increasing rapidly. International investors’ optimism about the country’s future was lifted by stabilization policy that followed the advice of Western institutions.

The stages of startup financing can be conceivably broken down into five financing stages. Although for the purposes of this paper - there will three primary stages that represents the these five stages. It should also be noted that there is no straightforward process of financing a firm. The financial positions and needs of startups vary from one startup to the next. While one firm may need to go through one financing stage, another firm may completely forgo said stage. With this said, the three main stages of startup financing can be listed as the early, mid-stage and late-stage of a start-up. The five financing stages that form the basis of the primary stages are the seed capital, angel investor funding, venture capital financing, “bridge” financing and IPO stage.