Russian cyber security start-ups to get their own accelerator program | Volga, Finance, business

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Russian cyber security start-ups to get their own accelerator program

3 Nov '15
RT-Inform, an asset of Rostec, a major Russian state-owned tech corporation, has partnered with Russia’s Internet Initiatives Development Fund and I-Teco, a private business, to launch a tech accelerator program for cyber security start-ups, the Rostec website announced.

The partners have unveiled plans to ante up a total of about $16m over the next two years to support start-ups in this field.

The effort is backed by the Russian Ministry of Telecom and Mass Communications. Experts from RT-Inform, the Ministry, the Fund and I-Teco expect to get actively involved both at the stage of selection and later on when acceleration begins. This will give young entrepreneurs a clue as to where and how their products or technologies could be used.

Projects that will show good growth dynamics may expect seed-stage investment and support in further funding rounds, Rostec said.

I-Teco, a provider of services and solutions for high-end customers, is ready to extend its product line by incorporating advanced technologies to be developed by the start-ups participating in the acceleration program, I-Teco president Shamil Shakirov said.

The global market for cyber security solutions has been on the rise lately, growing at a CAGR of in excess of 15%, according to Rostec data. By 2017, it is expected to be worth a tangible $9.9bn. In Russia alone, businesses post a total of more than $2.5bn a year in damages tied to cyber crimes.

Cyber security tech solutions are in demand across sectors, including big banks, financial organizations and government agencies. Business Insider estimates that in 2016, more than 60% of the world’s most renowned brands will face problems tied to data leaks, and are expected to double their cyber security budgets.