%0 Journal Article
	%A I. Rodionov and  A. Semenov and  E. Gosteva and  O. Sokolova
	%D 2015
	%J International Journal of Mechanical and Industrial Engineering
	%B World Academy of Science, Engineering and Technology
	%I Open Science Index 100, 2015
	%T Emerging VC Industry: Do Market Expectations Play the Most Important Role in Project Selection? Evidence on Russian Data
	%U https://publications.waset.org/pdf/10001822
	%V 100
	%X The venture capital becomes more and more advanced
and effective source of the innovation project financing, connected
with a high-risk level. In the developed countries, it plays a key role
in transforming innovation projects into successful businesses and
creating the prosperity of the modern economy. In Russia, there are
many necessary preconditions for creation of the effective venture
investment system: the network of the public institutes for innovation
financing operates; there is a significant number of the small and
medium-sized enterprises, capable to sell production with good
market potential. However, the current system does not confirm the
necessary level of efficiency in practice that can be substantially
explained by the absence of the accurate plan of action to form the
national venture model and by the lack of experience of successful
venture deals with profitable exits in Russian economy. This paper
studies the influence of various factors on the venture industry
development by the example of the IT-sector in Russia. The choice of
the sector is based on the fact, that this segment is the main driver of
the venture capital market growth in Russia, and the necessary set of
data exists. The size of investment of the second round is used as the
dependent variable. To analyse the influence of the previous round,
such determinant as the volume of the previous (first) round
investments is used. There is also used a dummy variable in
regression to examine that the participation of an investor with high
reputation and experience in the previous round can influence the size
of the next investment round. The regression analysis of short-term
interrelations between studied variables reveals prevailing influence
of the volume of the first round investments on the venture
investments volume of the second round. The most important
determinant of the value of the second-round investment is the value
of first–round investment, so it means that the most competitive on
the Russian market are the start-up teams that can attract more money
on the start, and the target market growth is not the factor of crucial
importance. This supports the point of view that VC in Russia is
driven by endogenous factors and not by exogenous ones that are
based on global market growth.
	%P 1333 - 1339