eprintid: 480 rev_number: 11 eprint_status: archive userid: 64 dir: disk0/00/00/04/80 datestamp: 2021-07-31 10:07:19 lastmod: 2021-07-31 10:07:45 status_changed: 2021-07-31 10:07:19 type: thesis metadata_visibility: show creators_name: Perich, Svetlana corp_creators: Louise Gorman title: An Examination of the Success of US Venture Capital Funded Companies in the Russian Market. ispublished: submitted subjects: H1 subjects: HM divisions: MSCAF full_text_status: public keywords: Us Venture Capital funded companies, Russian Market. abstract: The US venture capital market is perceived to be one of the most successful in the world. Every year the US improves innovation through new creative start-ups which have been emerging for decades. The Russian venture capital market, on the other hand, has experienced difficulties in development for many reasons. Both markets are different from each other, but at the same time they share certain similarities, such as the role of government in the markets. The Russian market lacks development and innovation, letting foreign business fill the gap in the market. The study will show whether the US companies were able to enter the Russian market and offer their products or services, substituting the Russian innovative companies. The study will discuss the venture capital (VC) in general, which will include a consideration of the history of VC, types of investment rounds, business angels and crowdfunding. Then, the US and the Russian VC markets will be analysed in order to determine how they work. Further in the study, a case study will be conducted: eight companies, which began their activity as start-ups and became successful, will be identified. The companies’ annual reports will be used to calculate certain financial ratios to assess their financial and general success in the market. Two years will be compared: the year before and after the funding round. This will lead to a survey of the Russian people to determine how they perceive the chosen companies. All that will help see whether the US companies were able to fill the gap in the Russian market. date: 2020-09-11 date_type: submitted institution: Griffith College department: Graduate Business School: MSc in Accounting and Finance Management thesis_type: masters referencetext: References: Aris, Ben (2019) The Trouble With Investing Into Russia. Available at: https:// www.themoscowtimes.com/2019/08/29/the-trouble-with-investing-into-russia-a67068 (Accessed: 23.07.2020) Apellis Pharmaceuticals (2018) SEC Fillings. Available at: https://investors.apellis.com/financial�information/sec-filings (Accessed: 25.07.2020) Atkinson, T. and Duca J. V. (2017) Equity Regulation and U.S. Venture Capital Investment. Federal Reserve Bank of Dallas Research Department Working Paper 1707 Aydin, R. (2019) The history of WeWork — from its first office in a SoHo building to pushing out CEO and cofounder Adam Neumann. Available at: https://www.businessinsider.com/wework�ipo-we-company-history-founder-story-timeline-adam-neumann-2019-8 (Accessed: 23.07.2020) Bacior, M. (2020) A brief history of venture capital. Available at: https://medium.com/investify�media/the-brief-history-of-venture-capital-2b96bad02b5b (Accessed: 26.06.2020) Carlson, N. (2012) Pinterest CEO: Here's How We Became The Web's Next Big Thing. Available at: https://www.businessinsider.com/pinterest-founding-story-2012-4 (Accessed: 10.08.2020) Carson, B. (2019) Peloton CEO John Foley Faces the Skeptics Again: This Time, Buyers in Its $8 Billion IPO. Available at: https://www.forbes.com/sites/bizcarson/2019/09/26/peloton-ceo�john-foley-faces-the-skeptics-again-this-time-buyers-in-its-8-billion-ipo/#3c5c24543498 (Accessed: 12.08.2020) Clark, K. (2018) The 10 largest US venture rounds of 2018. Available at: https://techcrunch.com/ 2018/12/26/the-10-largest-us-venture-rounds-of-2018/ (Accessed: 02.08.2020) Ducker, M. (2017) Why Government-Supported Venture Capital Is Something You Should Think (Twice) About. Available at: https://www.inc.com/mike-ducker/venture-capital�government.html (Accessed: 18.07.2020) Golubovich, A. (2015) Venture capital in Russia: (un)availability and (ir)relevance | Forbes | Available at: https://www.forbes.ru/mneniya-column/konkurentsiya/306227-venchurnyi�kapital-v-rossii-nedostupnost-i-nevostrebovannost; (Accessed: 14.07.2020) Graham, A. (2019) State of the Venture Capital Industry in 2019. Toptal Guler, I. And Guillen. F. (2010) Institutions and the internationalization of US venture capital firms. Journal of International Business Studies 41, 285-205; Academy of International Business EduPristine (2017) Venture capital. Available at: https://www.edupristine.com/blog/venture-capital (Accessed: 03.07.2020) Eklund, Johan; Levratto, Nadine & Ramello, Giovanni B. (2018) Entrepreneurship and failure: two sides of the same coin? | Small Business Economics; Available at: https://link.springer.com/ article/10.1007/s11187-018-0039-z (Accessed: 22.07.2020) EY Dsight (2019) Venture Russia: results of 2019. Available at: https://www.ey.com/ru_ru/news/ 2020/02/dsight-vc (Accessed: 15.07.2020) Fama, E.F. and Jensen, M.C. (1983) Separation of ownership and control. Journal of Law and Economics, 26(2), pp.301-325. (Accessed: 22.07.2020) Fedotov, I. (2019) Venture investment. Available at: https://vc.ru/finance/105945-venchurnye�investicii-chto-eto-takoe-kak-oni-rabotayut-i-kakie-est-plyusy-i-minusy (Accessed: 20.06.2020) Gompers, P. A., Gornall, W., Kaplan, S. and Strebulaev, I. (2016) How Do Venture Capitalists Make Decisions?. NBER Working Paper Series, No. 22587 (Accessed: 27.06.2020) Griffith, E. (2019) Peloton Is a Phenomenon. Can It Last? Available at: https://www.nytimes.com/ 2019/08/28/technology/peloton-ipo.html (Accessed: 13.08.2020) Hartmans, A. and Leskin, P. (2019) The history of how Uber went from the most feared startup in the world to its massive IPO. Available at: https://www.businessinsider.com/ubers-history (Accessed: 12.08.2020) Jensen, M.C. and Meckling, W.H. (1976) Theory of the firm: managerial behaviour, agency costs and ownership structure. Journal of Financial Economics, 3(4), pp.305-360. Johnson, W. C. and Sohl, J. (2012) Angels and venture capitalists in the initial public offering market; Venture Capital, Vol. 14, No. 1, 27-42. Jiang, W. (2017) Differences Between an Angel Investor and a Venture Capitalist. Available at: https://www.business.com/articles/angel-investors-vs-venture-capitalists/ (Accessed: 24.06.2020) Konrad, A. (2019) Zoom, Zoom, Zoom! The Exclusive Inside Story Of The New Billionaire Behind Tech’s Hottest IPO. Available at: https://www.forbes.com/sites/alexkonrad/2019/04/19/zoom�zoom-zoom-the-exclusive-inside-story-of-the-new-billionaire-behind-techs-hottest-ipo/ #50a3a3c84af1 (Accessed: 17.08.2020) Kunthara, S. (2019) WeWork May Reduce Its Valuation Ahead Of IPO By Tens Of Billions. Available at: https://news.crunchbase.com/news/wework-may-reduce-its-valuation-ahead-of-ipo-by�tens-of-billions/ (Accessed: 02.08.2020) Lanin, R. (2009) The peculiarities of the economic relations on the venture capital market. ISSN 1810-0201. Vestnik TGU, issue 10 (78) Liu, H. and Wang, Y. (2018) The Value of Crowdfunding: An Explanation Based on Demand Uncertainty and Comparison with Venture Capital. Emerging Markets Finance & Trade, 54:783–791, Taylor & Francis Group, LLC, ISSN: 1540-496X print/1558-0938 online, DOI: https://doi.org/10.1080/1540496X.2018.1434619 Moran, D. (2019) A Brief History of WeWork, the Flying Startup Facing Turbulence. Available at: https://www.bloomberg.com/news/articles/2019-09-22/a-brief-history-of-wework-the-flying�startup-facing-turbulence (Accessed: 15.08.2020) Olsen, D. (2018) The 20 most valuable VC-backed companies in the US. Available at: https:// pitchbook.com/news/articles/the-20-most-valuable-vc-backed-companies-in-the-us (Accessed: 04.08.2020) Olsen, D. (2018) Startup nation: The most valuable VC-backed company in each US state. Available at: https://pitchbook.com/news/articles/startup-nation-the-most-valuable-vc-backed�company-in-each-us-state-interactive-graphic (Accessed: 04.08.2020) Peloton (2018) SEC Fillings. Available at: https://investor.onepeloton.com/financial-information/ sec-filings/ (Accessed: 23.07.2020) Pyko, O. (2012) The formation of the venture capital market in Russia. No 42(824) Ross, S. (2020) How is Venture Capital Regulated by the Government? Available at: https:// www.investopedia.com/ask/answers/013015/how-venture-capital-regulated-government.asp (Accessed: 24.07.2020) Rudden, J. (2020) Value of venture capital investment in the U.S. 2020. Available at: https:// www.statista.com/statistics/277506/venture-caputal-investment-in-the-united-states-by-sector/ (Accessed: 01.08.2020) Schreiber, B. A. (2017) Tesla, Inc. Available at: https://www.britannica.com/topic/Tesla-Motors (Accessed: 15.08.2020) SEC (2018) Annual reports. Available at: https://www.sec.gov/Archives/edgar/data/ 1533523/000119312519220499/d781982ds1.htm (Accessed: 15.08.2020) SendGrid (2016) Annual reports. Available at: https://sendgrid.com/blog/sendgrids-startup-story-with�co-founder-isaac-saldana/ (Accessed: 20.07.2020) Shang, Y., Yu, H. and Ma, Z. (2020) Venture Investors’ Monitoring and Product Innovation Performance in Serial Crowdfunding Projects: An Empirical Test. The Chinese Economy 2020, VOL. 53, NO. 3, 300–314 https://doi.org/10.1080/10971475.2020.1721045 Solovyov, A. (2019) How does a venture fund work? Available at: https://vc.ru/finance/67606-kak�ustroen-venchurnyy-fond-s-kommentariyami (Accessed: 27.06.2020) Strebaluev, I. and Gornall, W. (2015) How Much Does Venture Capital Drive the U.S. Economy? Available at: https://www.gsb.stanford.edu/insights/how-much-does-venture-capital-drive-us�economy (Accessed: 23.07.2020) Szmigiera, M. (2019) Venture capital in North America - Statistics & Facts. Available at: https:// www.statista.com/topics/2565/venture-capital-in-north-america/ (Accessed: 23.07.2020) Tarhuni, N., Gelfer, J., Frederick, A., Stanfill, C., Stanford, K. and Le, V. (2019) The definitive review of the US venture capital ecosystem. PitchBook; Research and analysis Tesla Motors (2016) Annual reports. Available at: https://www.tesla.com/about (Accessed: 20.07.2020) Urakchiev, A. (2014) The russian venture capital market: the history of development, current tendencies. Business strategies Vranovich, E and Michurina, O (2013) Venture capital in the innovational development of the economy. ISSN 1993-047X. “Current problems of the economy and law”; №4. Walker, S. (2010) Wave Theory For Alternative Investments: Riding The Wave with Hedge Funds, Commodities, and Venture Capital. McGraw-Hill Education; 1st Edition, 464 pages, ISBN-13: 978-0071742863, ISBN-10: 0071742867 White, A. and Mathur, P. (2019) The 25 most valuable VC-backed companies in the US. Available at: https://pitchbook.com/news/articles/the-25-most-valuable-vc-backed-companies-in-the-us (Accessed: 04.08.2020) citation: Perich, Svetlana (2020) An Examination of the Success of US Venture Capital Funded Companies in the Russian Market. Masters thesis, Griffith College. document_url: http://go.griffith.ie/480/1/Svetlana%20Perich.pdf document_url: http://go.griffith.ie/480/2/Svetlana%20Perich.txt