Runa Capital Sets Aside USD 50 Million to Back Cloud Computing and IT Companies

Runa Capital Sets Aside USD 50 Million to Back Cloud Computing and IT Companies

Moscow-based venture capital company Runa Capital decided to increase its funding program to USD 50 million aimed at backing technology and Cloud Computing companies in Russia and abroad. The goal of the venture capital fund is to invest in early-stage Russian IT companies and growing number of investors share the company’s vision that Russia’s technology market has huge potential, the company said in a press release.

Competing on a global level is often a problem for Russian IT companies although the government in Moscow announced a strategy to intensively develop country’s IT sector and Cloud Computing, in particular. Actually, without backing from angel investors and venture capital funds, Russian IT start-ups are destined to suffer from insufficient funding, many local analysts admit.

At present, Runa Capital includes partners like Edward Nicholson, former CEO of Brunswick-UBS in Russia and the CIS and Alexander Katalov, investor in Begun, Softkey, Alawar and ElcomSoft.  Dmitry Chikhachev is one of the key figures in the venture capital fund – a serial entrepreneur and business executive who believes that Russia’s technology companies can compete on equal terms with Western competitors but must be supported by private capital flows since the state is not able to back each promising project. In an interview with Wall Street Journal he admits that local tech start-ups are well positioned in terms of technology and knowledge base but experience difficulties in finding institutional investors to support their efforts. Western investors tend to be cautious when pouring money in Russia and Runa Capital just fills an existing gap in backing promising tech start-ups.

In 2010 we successfully invested in two projects – the voice-enabled social network OnAir3G and cloud-based application development platform Hivext.com. Today’s expansion of our fund to USD 50 million will ensure that we can continue to build upon our primary objective of elevating talented Russian technology teams to the world stage,” Chikhachev explains in a company press release.

Another eight to ten investments are expected in 2011, according to him. The company’s founders claim the venture capital fund is ready to invest in Russian projects abroad, which is a clear signal that new market players can expect backing no matter of their geographical location. Actually, this is good news for Russian tech professionals who experience difficulties to fund their promising projects overseas.

Traditionally, Russia’s economy is heavily dependent on energy exports while President Dimitry Medveded declared the country should develop advanced technologies if it is going to have a truly competitive and sustainable economy. As a matter of fact, Russian tech companies can offer more value for money compared to Chinese competitors, for example, but Beijing invests heavily in technology start-ups while Moscow bureaucrats tend to forget that technology is what will increase a country’s competitive advantage once mineral resources are depleted.

Alexander Galitsky, one of the angel investors in the team of Runa Capital and a former head of digital communications for several Soviet space programs, is obviously a man who has expertise in the field of technology. He is now part of a group of investors that change the way Russian tech companies are run, backed by private capital injections instead of relying on government funding. It is worth investing in Russian and East European tech start-ups for a number of reasons, Skype being developed by former Soviet software developers just one of them.

More importantly, a huge market is knocking at the door because Russia is not the country it used to be and Russians will make use of growing number of advanced hardware, hence their appetite for technology will also grow. One who is underestimating the growth potential of Russian tech and Cloud Computing start-ups is simply not well informed or fixed on the past.

In truth, technology has no country of origin and for various reasons North America still relies on European and Asian newcomers to keep its technological health in good form. Just take a look at the alumni and faculty list of the Massachusetts Institute of Technology and you will realize that investing in tech and Cloud Computing start-ups outside the United States is more than a wise move.

By Kiril Kirilov

Sorry, comments are closed for this post.

Comic
Fintech Systems, Advancements and Investments

Fintech Systems, Advancements and Investments

Fintech Growth According to a recent report, global investment in fintech companies including both venture-backed and non-venture-backed businesses reached $9.4 billion in the second quarter of 2016; investment in venture capital-backed fintech startups, however, fell by 49%. Nevertheless, the Pulse of Fintech, published jointly by KPMG International and CB Insights, suggests venture capital investment in…

How Identity Governance Can Secure The Cloud Enterprise

How Identity Governance Can Secure The Cloud Enterprise

Securing The Cloud Enterprise Cloud adoption is accelerating for most enterprises, and cloud computing is becoming an integral part of enterprise IT and security infrastructure. Based on current adoption trends, it’s clear that the vast majority of new applications purchased by organizations will be SaaS applications. The allure is evident, from cost savings to speed…

Significant Emerging Technologies To Lookout For In 2017

Significant Emerging Technologies To Lookout For In 2017

Emerging Technologies The entire world is being transformed right before our eyes. Emerging technologies are developing at break-neck speeds, and the global community needs to be prepared for what lies in the horizon. As with anything new or evolving there is benefit versus risk to consider. Most of the up-and-coming technologies that will soon affect…

In The Fast Lane: Connected Car Hacking A Big Risk

In The Fast Lane: Connected Car Hacking A Big Risk

Connected Car Hacking Researchers and cybersecurity experts working hard to keep hackers out of the driver’s seat. Modern transportation has come a million miles, and most all of today’s vehicles are controlled entirely by digital technology. Millions of drivers are not aware that of the many devices in their digital arsenal, the most complex of…

Having Your Cybersecurity And Eating It Too

Having Your Cybersecurity And Eating It Too

The Catch 22 The very same year Marc Andreessen famously said that software was eating the world, the Chief Information Officer of the United States was announcing a major Cloud First goal. That was 2011. Five years later, as both the private and public sectors continue to adopt cloud-based software services, we’re interested in this…

Connecting With Customers In The Cloud

Connecting With Customers In The Cloud

Customers in the Cloud Global enterprises in every industry are increasingly turning to cloud-based innovators like Salesforce, ServiceNow, WorkDay and Aria, to handle critical systems like billing, IT services, HCM and CRM. One need look no further than Salesforce’s and Amazon’s most recent earnings report, to see this indeed is not a passing fad, but…

Achieving Network Security In The IoT

Achieving Network Security In The IoT

Security In The IoT The network security market is experiencing a pressing and transformative change, especially around access control and orchestration. Although it has been mature for decades, the network security market had to transform rapidly with the advent of the BYOD trend and emergence of the cloud, which swept enterprises a few years ago.…

Do Not Rely On Passwords To Protect Your Online Information

Do Not Rely On Passwords To Protect Your Online Information

Password Challenges  Simple passwords are no longer safe to use online. John Barco, vice president of Global Product Marketing at ForgeRock, explains why it’s time the industry embraced more advanced identity-centric solutions that improve the customer experience while also providing stronger security. Since the beginning of logins, consumers have used a simple username and password to…

Are Cloud Solutions Secure Enough Out-of-the-box?

Are Cloud Solutions Secure Enough Out-of-the-box?

Out-of-the-box Cloud Solutions Although people may argue that data is not safe in the Cloud because using cloud infrastructure requires trusting another party to look after mission critical data, cloud services actually are more secure than legacy systems. In fact, a recent study on the state of cloud security in the enterprise market revealed that…

Cloud-based GRC Intelligence Supports Better Business Performance

Cloud-based GRC Intelligence Supports Better Business Performance

Cloud-based GRC Intelligence All businesses need a strategy and processes for governance, risk and compliance (GRC). Many still view GRC activity as a burdensome ‘must-do,’ approaching it reactively and managing it with non-specialized tools. GRC is a necessary business endeavor but it can be elevated from a cost drain to a value-add activity. By integrating…

Consequences Of Combining Off Premise Cloud Storage and Corporate Data

Consequences Of Combining Off Premise Cloud Storage and Corporate Data

Off Premise Corporate Data Storage Cloud storage is a broad term. It can encompass anything from on premise solutions, to file storage, disaster recovery and off premise options. To narrow the scope, I’ve dedicated the focus of today’s discussion to the more popular cloud storage services—such as Dropbox, Box, OneDrive—which are also known as hosted,…

Cost of the Cloud: Is It Really Worth It?

Cost of the Cloud: Is It Really Worth It?

Cost of the Cloud Cloud computing is more than just another storage tier. Imagine if you’re able to scale up 10x just to handle seasonal volumes or rely on a true disaster-recovery solution without upfront capital. Although the pay-as-you-go pricing model of cloud computing makes it a noticeable expense, it’s the only solution for many…

Cloud Computing Offers Key Benefits For Small, Medium Businesses

Cloud Computing Offers Key Benefits For Small, Medium Businesses

Cloud Computing Benefits A growing number of small and medium businesses in the United States rely on as a means of deploying mission-critical software products. Prior to the advent of cloud-based products — software solutions delivered over the Internet – companies were often forced to invest in servers and other products to run software and…

Cloud Infographic – Disaster Recovery

Cloud Infographic – Disaster Recovery

Disaster Recovery Business downtime can be detrimental without a proper disaster recovery plan in place. Only 6% of businesses that experience downtime without a plan will survive long term. Less than half of all businesses that experience a disaster are likely to reopen their doors. There are many causes of data loss and downtime —…

15 Cloud Data Performance Monitoring Companies

15 Cloud Data Performance Monitoring Companies

Cloud Data Performance Monitoring Companies (Updated: Originally Published Feb 9th, 2015) We have decided to put together a small list of some of our favorite cloud performance monitoring services. In this day and age it is extremely important to stay on top of critical issues as they arise. These services will accompany you in monitoring…

Cloud Infographic – The Internet Of Things In 2020

Cloud Infographic – The Internet Of Things In 2020

The Internet Of Things In 2020 The growing interest in the Internet of Things is amongst us and there is much discussion. Attached is an archived but still relevant infographic by Intel which has produced a memorizing snapshot at how the number of connected devices have exploded since the birth of the Internet and PC.…