At the end of 2025, the volume of the Russian venture capital market exceeded RUB 12 billion ($145 million), with the bulk of investments coming from private funds and corporate investors. How can the volume of investment in Russian technology companies be increased, and what role do investors from friendly countries play in this? What should startups pay attention to when entering foreign markets, and which models should they consider? Additionally, what challenges and risks should they prepare for? Participants of the roundtable, Investment Bridges 2026: How Russian Technology Companies Can Attract Investment in the Foreign Markets of Friendly Countries, discussed these and other pressing topics. The event took place on March 5 at the Russian Chamber of Commerce and Industry.
Venture strategy
Attracting foreign direct investment has long been a challenge not only for technology companies but for the Russian economy as a whole. For instance, the country’s foreign direct investment balance remains negative. Meeting participants emphasized that addressing this issue is now critical.
“Attracting investment, including foreign investment, for Russian technology companies is undoubtedly of significant strategic importance,” Vice President of the Russian Chamber of Commerce and Industry Ilya Zubkov noted.
“If we want to build a truly innovative and competitive market in Russia, we cannot do without venture capital – nor can we ignore foreign direct investment,” added Vladimir Gamza, Chairman of the Russian Chamber of Commerce and Industry’s Council for Financial Markets and Investments.
At the same time, a wide range of tools and institutions has emerged in the domestic market to support and promote technology companies, including those targeting global markets. Yet, a unified center of expertise is still missing.
“Most companies, including startups, are looking for such economic agents, but they often don’t understand the expertise each one offers or whether they can effectively position a particular technology or company,” notes Stanislav Pozharnov, Vice President of the Russian Direct Investment Fund (RDIF).
In this context, thorough preparation for international expansion is especially crucial for startups – from selecting the right market, securing investors, and structuring the business, to understanding the local cultural nuances of the region where they plan to operate.
The issue of jurisdiction
Meeting participants noted that the global capital market is no longer truly global, meaning companies need to carefully choose which foreign markets to enter.
Among friendly countries, the UAE, Saudi Arabia, Mexico, and Brazil remain attractive destinations, according to Mikhail Oganov, investment manager at KAMA FLOW. In contrast, the Indian market is highly competitive.
“In the CIS market, I would highlight Kazakhstan, Armenia, and Uzbekistan as small but growing opportunities,” the expert added.
CIS countries offer well-defined institutional frameworks for launching operations targeting Europe and the United States, while MENA countries provide the most suitable environment for expanding business in the Muslim world and across Africa.
Entering foreign markets: Preparation rules
Successfully attracting foreign investment involves more than just choosing the right jurisdiction. Expanding into foreign markets requires careful planning across multiple areas.
As part of the project’s “homework,” it needs to adapt its product to local requirements, refine its marketing strategy, and build a local team, says Artem Genkin, Chairman of the Venture Capital Commission of the Council for Financial Markets and Investments at the Russian Chamber of Commerce and Industry. They must also develop a comprehensive financial and legal protection strategy.
Unfortunately, in practice, expansion is not always well-planned, and companies often make common mistakes. For instance, they fail to monitor competitor activity and miss the emergence of similar projects.
“Often, companies simply don’t know what’s happening in their target markets; projects that come to us make this mistake about 10% of the time,” Artem Genkin notes.
Entrepreneurs also tend to underestimate the real costs of office space, logistics, and marketing. In response, they may cut corners on accounting or legal support, which can lead to violations and fines.
“Don’t skimp on accounting services. You need to hire a local firm, including for reporting, and be prepared to provide all primary documents, such as invoices, contracts, and correspondence,” Artem Genkin advises.
A key concern is also protecting intellectual property to prevent the theft of technology or brand assets. Entering an import market is always a unique process that cannot be fully captured by universal rules. For example, some countries require localization of the component base for high-tech projects, while others present challenges such as incompatible euro and dollar payment systems, not to mention differences in cultural norms.
“The world has entered an era of fragmentation and is increasingly a patchwork quilt,” Artem Genkin notes.
This makes the guidance of consultants especially valuable, as they help companies avoid common mistakes when entering foreign markets and streamline the process of attracting investment in friendly countries.
Investment models for a project
According to Valery Kardashov, Chairman of the Expert Council for Investments in Digitalization and Artificial Intelligence Projects at the Russian Chamber of Commerce and Industry and President of the AI Global Association, the most attractive sectors for investors currently include industrial digitalization, the agro-industrial complex, and healthcare. Across these sectors, three primary models are used to enter the markets of friendly countries.
“The most practical option is to begin with a pilot project alongside a corporate investor,” Kardashov notes.
He emphasizes that many corporations are now establishing accelerator programs; participation in these programs enables companies to launch pilot initiatives and, based on their outcomes, secure further investment.
Another approach involves offering products or services under a partner’s brand (white label). This method allows companies to enter markets more quickly, avoiding the costs associated with opening a local office. However, it typically results in lower profit margins and, crucially, creates dependence on the partner.
The third and most comprehensive strategy is to sell an equity stake in the company to a foreign investor.
International investment can also be attracted through modern financial tools.
“Digital financial assets make it easier to access capital and reduce barriers for foreign investors. Their issuance is faster than that of traditional securities, and transactions can be completed without intermediaries,” says Alexei Mostovshchikov, President of the MOST International Association of Industrialists and Entrepreneurs.
Finding a hub
Direct entry into global markets from Russia is often challenging. Instead, companies frequently use regional business hubs as stepping stones for expansion, with the United Arab Emirates currently playing a major role.
“The UAE, particularly Dubai, serves as a major logistics, economic, and business hub for expansion into other markets. This is further supported by the 2025 economic partnership agreement with the Eurasian Economic Union,” explains Yevgeny Yelemesov, Chief Representative of Dubai Chambers in Russia.
The region offers extensive opportunities across industries such as e-commerce, pharmaceuticals, real estate, fintech, ICT, and artificial intelligence. However, competition is intense, making thorough market analysis and careful preparation essential. Establishing a permanent local presence can significantly improve the chances of a successful launch.
At the same time, businesses can tap into a broad network of development institutions.
“Dubai Chambers operates representative offices across Europe, Asia, North and South America, and Australia. When a company seeks global expansion, we connect it with our international offices to help identify partners and build strong local relationships,” Yelemesov adds.
According to Roman Pavlovich, Director of TESLA Alliance international investment company, Serbia could also serve as a comparable hub for Russian projects.
Nevertheless, startups must first establish themselves domestically and engage with Russian investors before expanding internationally, according to Tatyana Seliverstova, founder of the Consult Invest ITIC international trading and investment company.
A Soviet path to the rescue
Another pathway into friendly markets is technology transfer. This model is currently being promoted by the Russoft Association and has already been tested in India.
“We advocate for technological sovereignty – independence from the US and China – and independent development. Our model is based on 50/50 joint ventures, fair distribution of benefits, and realistic expectations. Sovereignty, cooperation, fairness, and realism – that is what we call the USSR,” explains Valentin Makarov, President of the Russoft Association.
Efforts are already underway to implement six projects through this model in India, involving Russian investors and local investment funds.
“The response has been very positive. It’s an inspiring and dynamic platform that participants are eager to work within,” Makarov notes.
The model could be expanded to other friendly markets, strengthening Russia’s technological presence through training specialists, supplying equipment, and advancing innovation.
Venture prospects
Despite these opportunities, Russian projects still face systemic challenges when entering friendly markets, including complex financial logistics and legal inconsistencies. According to Vitaly Polekhin, President of the INVESTORO international investor organization, a structured and systematic approach can help overcome these barriers.
At the same time, he argues that building a unicorn company does not necessarily require international expansion. Given its population size, Russia itself represents a sufficiently large market for launching billion-dollar ventures.
Another major factor is how a country’s investment appeal depends on whether it functions primarily as a consumer market or as a market that both consumes and creates products. In this context, the emphasis on technological sovereignty remains crucial. Domestic demand is shifting toward local, rather than foreign, cross-border solutions. As a result, development companies are becoming more appealing to investors, including those from friendly countries.