Artem Genkin, Chairman of the Venture Capital Commission at the Council for Financial Markets and Investment (Russian Chamber of Commerce and Industry), has stated that while Russia’s venture capital market retains potential, it needs fine-tuning of legislation, tax mechanisms, and capital-raising infrastructure.
Speaking at the 5th International Congress of Financiers in St. Petersburg, Dr. Genkin described the market as “more alive than dead, but in need of attention.” He linked the market’s prospects to the growing challenges Russian investors face in foreign markets.
Artem Genkin identified several key barriers: the industry’s concentration in a few hubs, a shortage of ‘smart money,’ the lack of a unified information database, and a general lack of transparency. He also pointed to regulatory hurdles – measures designed to crack down on financial pyramids have also affected legitimate projects seeking investment, and current mechanisms do not yet fully meet market needs.
The economist proposed a range of solutions, including expanding tax incentives for venture investors, adapting investment deductions for non-public innovative companies, simplifying tax administration for startups, and introducing a separate legal status for innovative companies with clearly defined criteria.
In his assessment, without such changes, the market will retain its potential but will not be able to fully become a sustainable source of long-term capital for the economy.