There's an IPO boom on the horizon

published
- 27 April 2024

The excess liquidity locked up in the country will allow the venture capital market to push back from the bottom, experts hope. They named the most expected Russian IPOs, identified the most promising areas of "high-tech" and gave forecasts for the venture business for the next two years.

"ABOUT TRENDS The global market was affected by the venture capital winter in the US, caused primarily by the end of the quantitative easing programme. The largest crypto exchanges, platforms, crypto funds were affected, which in turn involved the largest US venture capital funds. As a result, the whole market was feverish, this, among other things, had a negative impact on the IPO market.
The global venture capital market is under strong pressure from the stagnation we are seeing in the Eurozone and partly in the US. At the same time, we see a counter-trend in Russia: the number of investments is increasing, as a large amount of liquidity is locked up in the country.

PROGNOSES Given the amount of liquidity, we anticipate that the venture capital market will finally push off the bottom and post double-digit growth rates in 2024-2025.

ABOUT INSTRUMENTS This is also affected by the emergence of new instruments: investment platforms, digital financial assets, new associations and unions of business angels, and so on. Thus, not only the volume of money is growing, but also the volume of instruments for investing in technological projects, and this is happening in a high interest rate environment.

IPO PRO In Russia, the IPO boom is happening before our eyes. We expect a large number of new Russian ruble-denominated unicorns to appear in the next 2-3 years, which will grow on the wave of interest in different segments. These are the areas of hardware manufacturing, additive technologies related to both defence and corporate and industrial software markets" - Evgeny Borisov, Partner and Development Director at Kama Flow.

There's an IPO boom on the horizon

published