The BIK Ratings rating agency and the investment boutique ASER Capital conducted a report on the venture capital market in Belarus. Analysts identified three main trends that dominated in 2020.
- Reduction in the VC investment activity
The investment support of Belarus was decreased by 21.8% and amounted to $36 million. The major part is taken by incoming investments, which increased by 45% to $32.1 million in 2020.
Meanwhile, the main increase in investment was driven by a $30 million funding round closed by PandaDoc, a San Francisco-based developer of software for the full cycle of the sales documents automation, in August 2020.
- Deterioration of the investment climate
As explained by analysts, the deterioration of the investment climate in Belarus was caused by several reasons. On the one hand, the pandemic has significantly decreased business activity in the country. On the other hand, the political crisis in Belarus has caused an outflow of qualified personnel and growth of investors’ disinterest in its market.
- IT is the leader of VC funds raising
In 2020, most financial deals were closed by startups and companies from the IT sector. They have totally raised 85% of venture capital investments, which is over $30 million.
The leading position of IT in the structure of raising the VC funds is due to the high level of its development and resilience in the face of pandemic accordingly. The growing demand for IT solutions in 2020, as well as the variety of internal sectoral directions also played a huge role.
