Evaluation Methods Of Venture Projects On Russian Market

Venture capital (venture capitalist) grows rapidly in developing countries since1990,just few inquiry took place on venture capitalist in developing countries. This inquiryconduces to the knowledge of venture capitalist in developing countries by studying venturecapitalist investments in Russia. Russia is a proper starting point to study venture capitalist indeveloping countries because Russia created and supported the state program of venturecapitalist investments "Skolkovo". Completed inquiry on venture capitalist in Russia willarouse strong interests to various venture capitalist players and policy makers in developingcountries.Most of the venture capital investments in Russia took place by domestic private andstate-owned venture capital funds. The dominance of Russian venture capital funds is mainlydue to Russia’s poor economic and political institutes (court systems, corruption, andterrorism).In the1990s, venture capitalists were generally interested in low-tech industries withmilitary background. However, in the late2000s, information technology (IT) firmsaccounted for about50%of the venture capitalist backed firms in the late2000s. Thepercentage of investments in high-tech industries in Russia in the late2000s has been on thesame level with others compared with venture capitalist investments in other countries. It isalso inconsistent with the profile of fast-growing private firms in Russia.Finance of businesspersons have limits in early stages of their start-up. Usualproviders of capital escape to enter due to uncertainties and information asymmetries. Toconvince venture capitalists to endow their resources in a venture, businesspersons must knowthe selection measure they use to evaluate new venture investment suggestions.The inquiry literature pay strong attention to this selection measure in the past, with afocal point on private Venture capitalists. However, few scientists look at the particularselection measure of public Venture capitalists, which are based on economic and socialobjectives. Due to the obvious differences among different classes of capital providers (forexample banks, business angels and venture capitalists) in terms of selection measure, varietycan also expected. We want to inquiry what kind of differences in selection measure standamong public and private Venture capitalists in arrangement to make useful recommendationsto real business. After a revision of the subsisting scientific literature, we prepared practical study with15Venture capitalists in Russia. We collected data about the Venture capitalists’objectives, conclusion-making process and selection measure through face-to-face interviewsand made a comparison among firms with different source of financing and propriety title.