Egor Abramov is an entrepreneur and investment director at Fort Ross Ventures, a management company that invests in US, Israeli and Russian startups. As the company’s investment director, Egor Alexandrovich Abramov notes that it manages funds totaling more than $345 million. In 2021, the company launched a new fund, the Fort Ross Seed Fund. It was created specifically to support projects founded by entrepreneurs from Russia.
Working with Corporations
The first fund of Fort Ross Ventures was called the SBT Venture Fund I. It was created back in 2012 and is currently not investing. The second was launched in 2017-2018 and is currently experiencing peak investment development.
The decision to create the Fort Ross Seed Fund was made in 2020. The fund was designed with a specific market in mind, and is focused primarily on investments in Russian projects. According to Egor Alexandrovich Abramov, Russia has promising early-stage startups that are developing not only in that country, but want to enter the American market. Fort Ross Ventures was able to provide them with such an opportunity. By serving as an intermediary, Fort Ross Ventures facilitates connections between these startups and leading American investors, streamlining their entry process and easing the process.
Fort Ross Ventures, under Abramov’s leadership, has honed its ability to collaborate with top Russian investors over the years. Abramov mentions that the company successfully facilitates the introduction of Israeli and American projects to the Russian market. This experience positions Fort Ross Ventures to efficiently integrate Russian startups into the domestic market, offering a faster route compared to proposals from foreign partners.
How the Russian and Western Venture Capital Markets Differ
According to Egor Abramov, entrepreneur and investor, the venture capital market in Russia is in many ways similar to that of America. At least when it comes to startup founders, in Russia they are just as modern, ambitious and demanding.
There is one key difference in the Russian venture capital market—namely, the lack of dedicated business incubators for early startups. In the United States, many such clusters have been created, and investors can actively invest in the projects nurtured there. Businessman Egor Abramov sees the creation of startup clusters in Russia as one of the goals of Fort Ross Ventures.
Focus Areas of the Fund
Egor Abramov, entrepreneur and founder of Fort Ross Seed Fund, asserts that the fund’s interests are shaped by investors’ preferences. Priority is accorded to companies capable of exploring avenues for realizing their products among the fund’s partners. However, this doesn’t imply that a startup lacking immediate investor interest will be overlooked. It’s crucial to recognize that the fund cannot guarantee an opportunity for financial gain.
Particular attention is given to startups creating products relevant to diverse investors, such as those in corporate training or promotion, constituting a significant portion—up to 90%—of the total startups.
Similar to other funds, Fort Ross Seed Fund employs markers for company evaluations. The rationales for deals not materializing often revolve around the inadequacy of the startup founder or a misalignment with human values, though such instances are exceptionally rare.
In many cases, deals fall through due to deep internal issues within the company. Egor Abramov observes that a startup’s founder may initially present it effectively, creating the impression of a worthwhile investment. Yet, a more thorough analysis and communication with clients who rejected the startup’s services or product unveil the true state of affairs, ultimately leading to the project’s abandonment.
To avoid such situations, Egor Abramov advises startup founders against self-deception from the outset. If one genuinely believes in their startup, thorough preparation can facilitate its presentation to investors. Understanding why the project is worth investing in is paramount, simplifying the presentation process.