Is Russia a Good Place to Launch a Startup?

Where you start your company still matters – but sticking too closely to one location might limit what you’re able to build. In today’s startup landscape, geography shapes your path – but it doesn’t have to define your potential.

Russia has emerged as a strong hub for entrepreneurship, offering access to funding, talent, and infrastructure. But with growing competition, rigid local programmes, and support often reserved for the most polished startups, relying solely on what’s nearby can slow you down – or hold you back.

In this article, we’ll explore what Russia gets right – and where founders often run into friction. We’ll also show how EWOR offers an alternative: a global, remote-first platform that gives you access to funding, mentorship, and community – no matter where you’re based.

1. Access to Funding in Russia

Funding is one of the most critical ingredients in building a successful startup – and Russia offers a growing ecosystem of support. From venture capital firms to government grants and angel investors, founders in this region have several pathways to raise capital and gain early traction.

The early-stage funding environment for startups in Russia is navigating a complex landscape. While challenges exist, including a significant decrease in foreign investment and private funds reducing check sizes, there are still active players. Notable VC firms involved in early-stage funding include Startup Lab, Kamaflow, Bright Capital, and the Internet Initiatives Development Fund (IIDF), which also provides systematic early-stage support. Angel investors are becoming a key driver, with their transaction numbers increasing. Government grants and support programs, such as the "Start-Take-Off" competition from the Innovation Assistance Fund, also aim to foster innovation. Despite a reported 37.53% drop in funding in early 2025 compared to the previous year, the seed stage is seeing increased transaction numbers, albeit with smaller average investments from private funds. The market is characterized by a shift towards domestic players and a focus on specific tech sectors.

A More Flexible Path Forward

In the wake of these challenges, founders don’t have to rely solely on local funding options. EWOR offers a more flexible path – providing up to €500,000 in early-stage capital But EWOR is more than a cheque. Our capital comes bundled with personalised support, investor-ready storytelling, and access to a network of over 400 active European investors – many of whom regularly participate in our Grand Pitch events. On average, EWOR fellows who complete the programme and pitch go on to raise €2 million in follow-on funding – over 10x more than founders from comparable European initiatives.

2. Innovation and Startup Culture  

Russia has become a centre of innovation, with numerous tech hubs, coworking spaces, and accelerators that foster creativity and new ideas. The local startup culture is vibrant, with a growing community of entrepreneurs working together to push the boundaries of what’s possible.

Russia's startup and innovation culture is developing, with government support playing a significant role in creating infrastructure like technoparks and incubators, particularly in hubs like Moscow and St. Petersburg. There is a growing network of coworking spaces and numerous tech events and conferences are held across the country. Entrepreneurial activity is present, though the rate of early-stage entrepreneurship is lower compared to some other countries, and many companies struggle to scale beyond initial stages. While there are venture funds and accelerators, including those focused on early-stage investments, the ecosystem appears to favor more structured programs and support from larger, often state-backed, entities and corporations. Personalized support for very early-stage founders might be less prevalent than participation in competitive, standardized acceleration programs.

For many entrepreneurs, the energy and resources available in Russia can provide the ideal environment to test new ideas and gain early traction. The collaborative atmosphere allows founders to connect with fellow innovators and build networks that can help their startups grow.

While the local startup culture is vibrant, the support founders actually receive can be hit or miss. VCs might offer funding but little time. Angel investors often give advice, but it’s scattered and inconsistent. What’s more, many accelerators rely on a one-size-fits-all model that doesn’t reflect the needs of exceptional founders. In fast-moving, competitive ecosystems like Russia, standing out is hard enough – getting the right kind of support shouldn’t be.

The Alternative to Cookie-Cutter Programmes

Finding a programme that truly adapts to your journey, not the other way around, is rare. However, EWOR offers the kind of depth and flexibility that many local programmes simply can’t match. Instead of following a fixed curriculum, our fellowships are modular and tailored – giving you the right support at the right time, based on where you are in your journey.

But the real strength of EWOR goes beyond structure. Fellows often describe the community as the most unexpected – and valuable – part of the experience. As some have put it: “The real magic lies in the community: the kind of conversations, insights, and connections that lead not only to breakthroughs – but to lasting friendships with some of the most fascinating people they’ve ever met”.

3. Talent and Workforce Availability

One of the greatest assets of launching a startup in Russia is access to a skilled and diverse talent pool. With universities producing top-tier graduates in technology, business, and other fields, startups can tap into a wealth of expertise to help grow their teams.

Russia has a large pool of technical talent, particularly strong in STEM fields due to a historical emphasis on such education. Top institutions like Lomonosov Moscow State University, ITMO University, and others produce skilled graduates in IT, engineering, and science. This talent base supports entrepreneurial growth by providing a skilled workforce for startups, especially in technology and innovation-driven sectors. While there's a strong foundation, retaining talent and developing specific advanced digital skills remain areas of focus. Local talent is crucial for building high-quality technology, particularly for the domestic market.

Like funding, competition for talent can be fierce, especially for highly specialised roles in fields like software development or AI. For startups looking to scale quickly, hiring the right people at the right time can be a challenge, leading some founders to look outside the region for remote talent solutions.

Get Global While Local

While hiring locally in Russia can be competitive and slow, EWOR gives you instant access to a global network of exceptional talent. Built by founders for founders, the EWOR team has launched and exited companies worth over €12 billion – and they bring that experience directly into your venture. It's not just about funding or surface-level advice; it's akin to having a co-founder from day one. 

The team collaborates closely with you to refine your idea, challenge your thinking, and support you through real-world decisions – just like a hands-on partner would. Moreover, with EWOR’s exclusive co-founder pool, you can find the right person to build with, regardless of their location.

4. Infrastructure and Support Systems

Russia boasts a strong infrastructure that supports the growth of new businesses. From modern office spaces to high-speed internet, entrepreneurs have access to everything they need to run their startups smoothly. Government policies may also provide tax breaks, legal support, and other incentives that make starting a business more attractive in this region.

Russia's startup ecosystem is supported by a growing infrastructure including incubators, accelerators, and technoparks, particularly prominent in cities like Moscow. These entities provide mentorship, business development services, and access to networks. Government initiatives play a significant role, with substantial funding disbursed to small and medium technological companies through organizations like the Fund for Assistance to Small Innovative Enterprises (FASIE) and the Skolkovo Foundation. Skolkovo, an innovation center, offers grants, expertise, and acceleration services. The government also provides tax reductions and support in special economic zones. Programs like GenerationS and accelerators linked to major companies and universities further bolster the ecosystem, helping startups access funding and scale.

But what looks good on paper often proves more complicated in practice. Bureaucracy can be time-consuming and opaque, especially for first-time founders unfamiliar with local laws. Incorporation takes longer than expected. Accessing public funding often means navigating slow processes, strict requirements, or hard-to-reach advisors. And operational costs – from accounting to regulatory compliance – can quickly eat into early budgets. 

A System That Moves With You

With access to expert guidance, practical legal resources, and a network of experienced entrepreneurs who’ve built across a range of regulatory systems, EWOR is well positioned to help founders navigate the bureaucratic and legal complexities that often come with building in Russia. Instead of wasting time figuring things out alone, you’ll have the tools and support to stay focused on what matters most – growing your venture.

And while we’re remote-first, our support is anything but distant. Through in-person gatherings like the EWOR House, city-based meetups, and our twice-yearly Grand Pitch event, you’ll still build meaningful relationships with investors, peers, and mentors. It’s a system that helps you focus on building – not just dealing with paperwork.

Can Russia Be Considered the Best Place to Launch a Startup?

There’s no doubt that Russia provides a vibrant environment for startups, with access to funding, innovation, talent, and infrastructure that can help entrepreneurs build successful businesses. For many, it’s a strong contender for the best place to launch a startup, thanks to its growing entrepreneurial ecosystem and support systems.

Entrepreneurs launching startups in Russia face several hurdles. Competition exists, though the market size offers opportunities, especially domestically, partly due to reduced foreign competition. Regulatory issues and bureaucracy can be challenging, with concerns about ambiguous laws and property protection. While the cost of living in major cities like Moscow and St. Petersburg can be high, impacting operational costs, Russia also has a skilled workforce with potentially lower labor costs compared to Western countries. Access to capital and navigating the legal environment, including evolving regulations in sectors like cryptocurrency, also pose difficulties.

However, it’s important to remember that the location of a startup is no longer the be-all and end-all. In today’s digital age, location-independent options like EWOR allow entrepreneurs to access world-class mentorship, funding, and resources from anywhere in the world. Whether you’re based in Russia or elsewhere, EWOR’s remote programmes are designed to support founders no matter where they are located.

So, while Russia offers significant advantages, it’s worth considering options like EWOR that enable you to launch and scale your startup with global support – whether you’re in the heart of a bustling startup hub or working from a quiet corner of the world.

Image credits: by Andreas Brücker on Unsplash