It’s no wonder why the largest Russian software vendor 1C Company wanted to raise private equity funds. Its 2008 revenues increased just 8 percent to $406 million, according to business newspaper Vedomosti. In the first quarter of 2009, the revenues of 1C Company dropped 14 percent in Ruble terms and 39 percent in USD terms, the newspaper reported. Mulimedia/gaming software and office product sales were down 32 and 31 percent in Ruble terms, respectively, while anti-virus and anti-spam software sales were up 23 percent.
The venture capital investors in Russia have appreciated the growth of internet security software market with recent backing of several new startups in the sector.
Troika Capital Partners, which manages three Russian regional venture funds with total equity capital of $50 million, has invested ca. $3.6 million (120 million Rubles) in S.N. Safe&Software (SafenSoft), a computer security software vendor. Formed in 2006 as a spin-off of StarForce, the company develops and markets Safe’n'Sec complex computer protection system in Russia and abroad.
The fund invested in the company because of its professional team and unique behavioral algorithms of the technology that analyze non-standard behavior in the system and identifies the virus or the perpetrator without a previous ‘vaccine.’ Mikhail Kalinichenko, the company’s founder previously worked as Director of Technologies at the largest Russian and top 5 global security software vendor Kaspersky Lab.
VTB Venture Fund has invested US$ 4 million in Returnil, a security solution provider with offices in Helsinki, St. Petersburg and Nanjing. Founded in 2007, the company markets Returnil Virtual System that helps to protect a computer against malware threats, Internet fraud, identity theft, electronic attacks that are usually missed by existing security software.