Entrepreneurs have found it very easy to attract surrogate investments. Last year the cryptocurrency investments in Russian startup projects have increased tenfold and reached $ 200 000 000, as reported by CryptoBazar platform. The experts explain such dynamics by the lack of strict regulation of the cryptocurrency stock markets, saying that it is easier to raise funds there than by more traditional means. However, there is a flip side to that, and that is the lower risk-proof rate of such investments.
In Russia, the aspiring entrepreneurs face difficulties while trying to attract some investments to their business: banks tend to be very reserved at providing loans for high-risk projects, whereas venture capital investors try to impose disadvantageous terms. Therefore, and against the background of drastic popularization of cryptocurrency agenda, the startuppers increasingly shift to ICO-based mechanisms of project development.
– Banks are very reluctant to give loans to farmers. Even if they do so now and then, the payment conditions are very harsh. It is like they are letting me buy a goat, but taking away my house for that. Having launched an ICO instead, I’m now paying back by my own products and have enough clients” – Mikhail Shlyapnikov, the farmer and “Kolinovo Ecosystem” ICO project initiator said to “Izvestia”.
He launched colions – a cryptocurrency of his own – followed by ICO. As a result, the farmer managed to raise the cryptocurrency amount worth $510 500 from 103 participants to the project. Now he supplies saplings, potatoes and poultry for his “bonds outstanding”.
– Last year, Russian entrepreneurs managed to attract cryptocurrency investments from all over the world worth more than $ 200 000 000. The year before these were ten times less. More than a hundred of projects was launched by the Russian startuppers in 2017, whereas in 2016 there were around 20 at best,” – Oleg Ivanov, the founder of CryptoBazar platform and the homonymous foundation stated.
According to expert estimates, every fifth currently existent ICO was made by people originating from Russia. In total, teams from Russia have raised more than $ 260 000 000 in last four years, which is 11% fraction of world’s cryptocurrency investments for this period. SONM supercomputer ($42 000 000), “Russian Mining Company” (RMC) ($45 000 000) and MobileGo mobile game platform ($53 000 000) are all among these. There are some industrial production projects as well, such as ZrCoin ($ 4 500 000), the industrial startup for synthetic zirconium dioxide production.