Friday, February 19, 2010

U.S. Venture Capital Investors See Thaw In Russia's Cold Market

"Venture capital funding slowed everywhere last year, but it all but dried up in Russia, where investment fell nearly 98% from 2008.

Now, Russia's domestic stock market is bouncing back, creating a healthier IPO outlook that could increase venture capital flows into the emerging economy, especially for early-stage companies involved in the red-hot nanotechnology arena.

"The IPO market is opening up, and that's creating some optimism about the potential of venture capital in Russia," said Alexandra Johnson, managing director of DFJ VTB Aurora, a partnership of Silicon Valley's Draper Fisher Jurvetson and Russia's VTB Bank. "An IPO is not a rarity anymore. Now there is more of an exit strategy, with M&A or an IPO. Right now, you hear IPO talk for five or six companies.""

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