Venture Capital - Belarus

Belarus

Highlights

Total Capital Raised in the Venture Capital market market in Belarus is forecasted to reach US$131.70m in 2024.
Early Stage leads the market with a projected market volume of US$67.57m in 2024.
When compared globally, the United States is expected to generate the most Capital Raised (US$136.6bn in 2024).
Amidst political and economic uncertainties, Belarusian Venture Capital market shows resilience with a growing interest in tech startups.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Venture Capital market in Belarus has been experiencing significant growth in recent years, driven by several factors.

Customer preferences: Investors in the Venture Capital market in Belarus have shown a strong preference for tech startups, particularly those involved in software development, IT services, and e-commerce. This is due to the country's well-established reputation as a hub for technology innovation and its highly skilled workforce in the IT sector. Investors are attracted to the potential for high returns in these sectors, as well as the opportunity to support and nurture the growth of promising startups.

Trends in the market: One of the key trends in the Venture Capital market in Belarus is the increasing number of international investors showing interest in the country's startups. This can be attributed to the growing recognition of Belarus as a favorable investment destination, thanks to its supportive business environment, government incentives, and strong technology infrastructure. International investors are looking to tap into the country's pool of talented entrepreneurs and innovative ideas, and are willing to provide the necessary funding and expertise to help these startups scale and expand globally. Another notable trend in the market is the rise of corporate venture capital (CVC) investments. Large corporations in Belarus are increasingly setting up their own venture capital arms or partnering with existing VC firms to invest in startups that align with their strategic goals. This trend is driven by the desire of corporations to gain a competitive edge by accessing new technologies, talent, and market opportunities. CVC investments not only provide startups with much-needed capital, but also offer them access to the resources and networks of established companies, which can greatly accelerate their growth.

Local special circumstances: Belarus benefits from a number of special circumstances that contribute to the growth of its Venture Capital market. One such circumstance is the country's strong education system, which produces a steady stream of highly skilled graduates in the fields of science, technology, engineering, and mathematics (STEM). This talent pool serves as a valuable resource for startups, attracting both local and international investors who recognize the potential for innovation and growth. Additionally, Belarus has implemented various government initiatives and policies to support entrepreneurship and innovation. These include tax incentives for startups, simplified procedures for business registration, and the establishment of technology parks and innovation clusters. These measures have created a favorable environment for startups to thrive and have helped attract both domestic and foreign investors to the Venture Capital market in Belarus.

Underlying macroeconomic factors: The growth of the Venture Capital market in Belarus is also influenced by several underlying macroeconomic factors. The country has experienced stable economic growth in recent years, supported by a diversified economy and a strong focus on the development of the technology sector. This has created a conducive environment for startups to flourish and has attracted the attention of investors looking for new investment opportunities. Furthermore, Belarus benefits from its strategic location at the crossroads of Europe and Asia, which provides access to a large market and facilitates trade and investment flows. The country's membership in the Eurasian Economic Union (EAEU) also offers preferential access to a market of over 180 million people, providing startups with a broader customer base and growth opportunities. In conclusion, the Venture Capital market in Belarus is experiencing significant growth due to customer preferences for tech startups, the increasing interest of international investors, the rise of corporate venture capital investments, local special circumstances such as a strong education system and supportive government initiatives, and underlying macroeconomic factors including stable economic growth and strategic location. These factors have created a favorable environment for startups to thrive and have attracted both domestic and foreign investors to the market.

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on the amount of capital raised, the average of deal size and the number of deals.

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 data from OECD, 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, CPI, number of small and medium-sized enterprises (SME), new businesses registered (number) . 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.