FEATURES OF FOREIGN INVESTOR ATTRACTION TO FUNDING OF THE RUSSIAN STARTUPS IN THE CONTEXT OF THE POSTCRISIS ECONOMY

• Main Author: Е. A. Poliakova
• Format: Article
• Language: Russian
• Published: Government of the Russian Federation, Financial University 2017-10-01
• Series: Финансы: теория и практика
• Subjects: start-up funding; investing in russia; foreign investor attraction; entrepreneur risks
• Online Access: https://financetp.fa.ru/jour/article/view/366

The current paper considers new opportunities of investing in the Russian business, which became available for investors in terms of the economic crisis. In the period of economic recovery, this topic is especially relevant, as attracting foreign capital to Russian start-ups can accelerate the recovery of the post-crisis domestic economy and contribute the diversification of production in the country. The subject of the study is Russian start-ups, financed by foreign investors, and start-ups in need of attracting capital. The objectives of the work are: identify the reasons for the interest of financing Russian start-ups by foreign investors, study the specifics of the decision on financing, and also to assess the existing risks faced by investors. The study provides a qualitative analysis of the market conjecture, based on estimates of foreign investment market participants, is conducted. Comparison of positions and approaches of investors allows us to find key features and identify problems of investing in Russian start-ups. The arguments for and against investing in the rapidly growing Russian business environment are examined. Among arguments for investing in Russia are cheap labour market and depreciation of start-ups due national currency depreciation, among arguments against - high political and economic risks. The results of this study can be used by investors to make rational decisions on investing in Russian business. Repeated research, extension of the sample and segmentation of data for time periods may reveal changes in key features of investing in Russia in dynamics, and lead to more accurate results.