Modern trends in the venture business

I see several trends. Some of them - the world, and some - typically Russian. One of global trends - is reducing the size of venture funds. The number of large funds (over $ 250 million) is reduced. Since 2007, the average size of venture capital falls. During the period from 2007 to 2009, according to Thomson Reuters, the average size of venture capital fund has fallen from $ 175 million to $ 135 million Compression funds has less to do with the global economic crisis, as the complexity of the investment of large funds with the necessary income. Foundation smaller easier to manage and find investments that meet the requirements of investors. yield a number of venture funds do not meet the expectations of investors. According to Cambridge Associates, the average return of venture funds LPs (Limited Partners - investors with limited liability, which do not participate in the management of the fund) fell from 2003 and from 2004 was negative. So why do people continue to invest in venture funds? The fact that venture capital is not homogeneous, and the yield on funds varies widely. According to Dow Jones VentureSource, 10% of venture funds provide 80% of the total growth in profitability. The desire to become more efficient funds has led to their reduction in size. In Russia, there are a few of their own trends. Despite on general activity around the innovation and venture business, alarming the Russian legislation. It is extremely inconvenient for the structuring of transactions. Therefore, most companies and venture funds, resorted to other jurisdictions. It should be noted and weak protection of minority shareholders in Russian law, and inability to conduct conditional deal. In such transactions the courts find conflict with the Civil Code, and the contracting parties are deprived of legal protection. Another problem - registration of companies in Russia. This is a complex and lengthy process. In the registration of a company can take several weeks, and offshore - just a few hours. There is overregulation and excessive legal forms. In Russia, there is still no legal framework governing the specific activity of venture capital. All these problems must be addressed. But the first steps in this direction have already been made: it was passed on first reading the federal law " On innovation activity "and were partially developed state support of venture financing. The positive aspects include the idea of ​​creating a" virtual Skolkovo "- a project that will link and coordinate the processes of innovation in all of Russia. For our country, geographically distributed and highly uneven development of economically it is extremely important. The second Russian trend - widespread copying successful western startups. In the last year or two, such cloning has become more popular and become faster. Runet users may remember the excitement in the late spring and summer around the projects associated with the coupon code. Then all a few months there were dozens of clones of the American company Groupon. Such projects appear literally in the moment as I write this column. Prior to that, also massively written games for social networks, and even before - their own social networks. In general, trends Drawing of interesting projects in the West has both pluses and minuses. Investors copying western projects, on the one hand, it's a plus, since the use of a proven business model reduces the risks. On the other hand, this limits the market for cloning project, making it a local . At first glance, to entrepreneurship and the development of Russia up seems less. But is it possible to immediately make successful domestic projects without going through several stages, which Western countries have already passed? Do we need a unique Russian projects, when a number of western projects successfully for several existing years in Russia and not widely used because of the peculiarities of our country? In my opinion, unnecessary. And they always will, when in Russia there a layer of experts and professionals in various areas of development and commercialization of high technology, which is currently still evolving .