Startup development, investments, and growth barriers

Ch. Chapter 7. P. 111–124.

Zobnina M.

This paper analyzes the Internet segment of the Russian venture market; specifically, its development in the framework of overall venture market, venture deals, stages of venture financing, and startup lifecycle. This research project is focused on different barriers that startups face as they proceed along the lifecycle and the possible support of the business ecosystem. Theoretical constructs are verified with data from the Russian Internet venture market. Field research explores the obstacles faced by Internet startup founders during each stage, which may represent opportunities for the startup support in order to increase the startup survival rate. According to the data provided by CB Insights Venture database, the global venture market accounted for $82.1 billion in the first half of 2014, which represents 67 percent growth, compared to the first half of 2013 (see Figure 7.1). The US market accounted for most of this volume (64 percent), while the BRICS are getting increased investors’ attention, especially China and India – with their shares of the global venture market increasing from 4 percent and 3 percent in the second half of 2013 to 7 percent and 4 percent in the first half of 2014, respectively.

Keywords: investments, Startup Development, growth barriers

In book

Emerging Markets and the Future of the BRIC Nations

Massachusetts: Edward Elgar Publishing, 2015.