Crowdinvesting - Russia

Russia

Highlights

The Crowdinvesting market in Russia is projected to reach a total transaction value of US$12.58m in 2024.
When compared globally, it is noteworthy that the United Kingdom leads with the highest transaction value of US$608m in 2024.
Russia's Crowdinvesting market is gaining traction due to the increasing number of tech startups seeking alternative funding sources.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

Crowdinvesting, also known as equity crowdfunding, is gaining momentum in Russia as a popular alternative financing option for startups and small businesses. This method allows entrepreneurs to raise funds from a large number of individual investors in exchange for equity or shares in their company.

Customer preferences in the Russian crowdinvesting market are driven by several factors. Firstly, investors are attracted to the potential high returns on their investments. By investing in early-stage startups, they have the opportunity to participate in the growth and success of these companies.

Additionally, crowdinvesting offers a more accessible and democratic approach to investing, allowing individuals with smaller budgets to participate in the investment process. This appeals to a wider range of investors who may not have access to traditional investment channels. Trends in the Russian crowdinvesting market indicate a growing interest from both entrepreneurs and investors.

Startups are increasingly turning to crowdinvesting platforms as a way to raise capital, as it offers a more efficient and cost-effective alternative to traditional funding sources. This trend is fueled by the success stories of previous crowdinvesting campaigns, which have demonstrated the potential for startups to secure significant funding through this method. Investors, on the other hand, are attracted to the diversification opportunities that crowdinvesting offers.

By investing in multiple startups, they can spread their risk and potentially achieve higher returns. Local special circumstances in Russia contribute to the development of the crowdinvesting market. The country has a vibrant startup ecosystem, with a growing number of innovative companies emerging across various industries.

However, access to traditional funding sources, such as bank loans or venture capital, can be challenging for these startups. Crowdinvesting provides an alternative avenue for entrepreneurs to raise the necessary funds to fuel their growth and development. Additionally, the Russian government has introduced supportive regulations and incentives to encourage crowdinvesting activities, further fostering the growth of the market.

Underlying macroeconomic factors also play a role in the development of the crowdinvesting market in Russia. The country has experienced economic challenges in recent years, which have led to a tightening of traditional funding sources. This has created a demand for alternative financing options, such as crowdinvesting, as both entrepreneurs and investors seek new avenues to access capital and generate returns.

Furthermore, the increasing digitalization of the Russian economy has made it easier for crowdinvesting platforms to connect entrepreneurs with potential investors, further fueling the growth of the market. In conclusion, the crowdinvesting market in Russia is developing rapidly due to customer preferences for high returns and accessible investment opportunities. The trend is driven by a growing interest from both entrepreneurs and investors, supported by local special circumstances and underlying macroeconomic factors.

As the market continues to evolve, it is expected to play an increasingly important role in the financing ecosystem for startups and small businesses in Russia.

Data coverage:

The data encompasses B2C enterprises. Figures are based on transaction values / revenues / assets under management and user data of relevant services and products offered within the FinTech market.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of key players, industry reports, third-party reports, publicly available databases, and survey results from primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending, population, internet penetration, smartphone penetration, credit card penetration, and online banking penetration. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.