russian venture capital market overview 1st quarter 2015

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Russian Venture Capital Market Overview

1st Quarter 2015

IN COOPERATION WITH

Contents

2

Greeting 3

About RMG partners 4 Two-Minute Overview of the Russian Venture Capital Market 5

Key Findings 6

VC Market Overview 7

Exits and Large Deals 8

Market Structure 9

Soft / Internet - B2B 13

Soft / Internet - B2C 14

Venture fund survey 15

Methodology 16

Deal List for 1Q2015 17

Calendar of Events 2015 23

Contacts 37

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Dear Colleagues, Despite current difficulties on the world scene and in the Russian media industry, we continue to produce a quarterly Report on the Russian venture capital market. We believe that current circumstances make it particularly important to fully and objectively communicate information on the Russian market. We strive to improve the content of our Report from issue to issue, helped by our partners: East-West Digital News and the National Association of Participants in the Alternative Investments Market (NAURAN).

In this Report, you will analysis of the market and interviews with market players as well as key metrics for the Russian venture industry. We also start to publish what we find to be the best articles and works of analysis concerning the market over the past period.

After a relatively successful year in 2014 we are now seeing a serious decline in activity with inevitable impact on the volume and number of transactions. Funds are holding back from investment and many Russian management companies have changed their focus to investment in Asia and other geographical regions.

Notable trends include growing influence of angel funds and clubs, including the Venture Club founded by Alexander Borodich. Projects with a sustainable return on investment are seeing increased popularity.

There has been some interest from private equity funds in technology projects that have advanced from the start-up stage.

Recent changes in Russian law as part of the campaign to bring more business onshore has led to uncertainly in the operation of venture capital funds and investment companies. Many investors lack a clear answer as to how to structure deals conveniently and efficiently. We therefore look forward to the moment when the new law on investment partnerships will start to work, enabling inflow of money to new funds that are organized as such partnerships.

I will be very glad to receive your comments, remarks and suggestions on the Report.

Please send me an e-mail at: [email protected].

Arseniy Dabbakh Managing Partner RMG Partners

3

Greeting

mailto:[email protected]







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About RMG Partners

RMG Partners is an independent Russian investment company. During 20 years of work it has built an impeccable reputation as a reliable partner for its clients and professional market players.

RMG partners provides Russian and foreign companies with a wide range of services in the field of venture capital investments: - search for promising target assets; - capital raising, including public or private offering; - search for strategic investors and support of M&A deals; - support for venture projects, including strategy development and

measures to increase capital-raising potential; - recommendations on deal structure and financing methods.

Analysis and discussion of deal terms and conditions, as well as due diligence.

RMG partners is an active member of the National Association of Alternative Investors (NAURAN). NAURAN is a non-profit partnership created to draw attention to the market of direct and venture capital investments in Russia, to form a favorable legal environment, to assist in fund raising and promote the Russian investment market on the international scene. Other members of NAURAN include:

4

http://www.ucpfund.com/en/

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Two-Minute Overview of the Russian Venture Capital Market

Seed

Start-up

Growth

Expansion

Total

Transaction numbers Investment value, $M

Average deal amount, $M

Investor structure

38 85

12.7 18

0.3 0.2

42 22

23 21

0.5 0.9

3 10

2.7 32

0.9 3.2

6 2

30.3 50

5.1 25

89 121

68.7 153

1.7 1.3

1Q2015 1QQ014

Number

0 13 Exits

0 109

Value, $M

Private fundsPublic fundsCorporationsPPPBusiness angels

5

Maturity 0 2

0 32

0 16

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Key Findings The venture capital market shrank by nearly two times in 1Q 2015 to its lowest level by both turnover ($68.7M) and transaction numbers (89) since the start of coverage by RMG partners

The only substantial y-o-y growth during 1Q 2015 was in transaction numbers at start-up and expansion stages

The biggest number of transactions in 1Q, 53 out of 89, were made by state entities (state funds, public-private partnerships, corporate funds of state-owned companies). But private capital is still dominant in total transaction value.

There were no exits in the first quarter of 2015. This was due to devaluation of assets in dollar terms following depreciation of the ruble

State funds paid a lot of attention to projects in IT (30 deals), industrial and biotech projects (7 deals including PPP), which have best prospects on international markets. There were 38 investments by state funds across all sectors in 1Q

The findings of our latest survey confirm that the Russian venture capital market is in crisis. In the current climate investors need to select projects even more carefully, to seek co-investors, and to cooperate with partners in order to take best advantage of opportunities to develop the project on foreign as well as local markets

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VC Market Overview

7

Source: RMG partners

158 222

385

142 151 139 165 197 262

193 221 213

69

101 90

86

97

73 53

101

129 134

101

116 110

89

020406080100120140160

- 50

100 150 200 250 300 350 400 450

1Q2012

2Q2012

3Q2012

4Q2012

1Q2013

2Q2013

3Q2013

4Q2013

1Q2014

2Q2014

3Q2014

4Q2014

1Q2015

Value, $M (left axis) Number of deals (right axis)

Halving of deal numbers made 1Q 2015 the worst performing quarter since the start of Russian venture market coverage by RMG partners. Amounts invested did not change significantly y-o-y in ruble terms, adjusted for real inflation, due to decline of the ruble exchange rate. Tough economic conditions have altered the distribution of investments between stages Complete lack of transactions at the final, mature stage is not telling, as transaction numbers at this stage have not exceeded one or two in previous periods. But it is interesting that start-up and expansion deals doubled y-o-y, while deals at the growth stage (between the latter two stages) plummeted. The growth period has become unattractive as it offers relatively slow increase of value (compared with start-up) and relatively high levels of risk (compared with expansion). Main investors in 1Q2015 were public funds, private funds and corporate funds (either those with their own acceleration programs, such as QIWI Universe 2.0 set up by the Russian payment system company, QIWI, or funds set up by companies such as Sberbank and Hubert Burda Media to invest in their own corporate projects). The share of investments by private funds, though still dominant, has declined as private Russian money has switched to foreign start-ups (this effect has also devastated private-public partnerships in Russia). As shown on page 9 below, private funding at the growth, expansion and maturity stages has plummeted and no other investor types have filled the gap. Early-stage projects in search of private finance still have recourse to “clubs” of business angels.

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Exits and Large Deals

8

Investment volumes in 1Q2015


153 69

109

0

200

400

1Q2014 1Q2015

Investments, $M

Base market Exits

There were many hurried exits from projects in 3Q and 4Q2015, and the sell-off led to a sharp decrease in valuations. As a result, there were no exits at all in 1Q2015. However, several investors, while keeping their projects open, are delaying new capital injections, not seeking co-investors, and have started negotiations on sale. Prominent projects now in search of buyers include LinguaLeo, Life-Pay, Utinet, Sotmarket. Contact, Payonline (a deal was completed in March 2015), etc. The emphasis is on recouping investments rather than any gains from growth in project value.

“Two years ago we changed our strategy and started investing in industrial start-ups. They often generate profits even faster than ICT projects, because the industrial technology sector sets definite targets – to meet certain technology goals, to create a specific component, to achieve a specific result. The first exit by our fund was at the start of 2014 from a start-up, which makes machinery for high-precision metalworking. I believe that government should be involved in the highly risky pre-seed stage because this is the stage that generates favorable conditions for commercial investors at later stages and that serves as a driver of interest.” Mikhail Rayak, executive director, Pre-seed Investment Fund

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Market Structure I

9

45

22

7 1

29

15

5 3

61

22

4 7

98

14 8 6

1

85

22

10 2 2

47

17 18 12

73

22

7 10

66

21 13

5

38 42

3 6 0

Seed Start-up Growth Expansion Maturity

Quarterly VC deal numbers by investment stages since 2013

1Q 2013 2Q 2013 3Q 2013 4Q 2013 1Q 2014 2Q 2014 3Q 2014 4Q 2014 1Q 2015Source: RMG partners

In conditions where financing sources are increasingly hard to find, many new Russian venture projects have developed a standard strategy. First, a seed-stage company carries out test sales of its products, obtaining a sales threshold of 50-200,00 rubles per month, which gives access to 1.4 million rubles funding for 3 months from a government-backed accelerator, the Internet Initiatives Development Fund. This is sufficient to finance start-up. The company then applies for competitive grants that are obtainable from various government development institutions, most notably the Foundation for Assistance to Small Innovative Enterprises (FASIE), which has a special government mandate since February 2015 to support the high-tech enterprise sector and has become active in administering and financing national VC contests such as Generation S. The great advantage of public funding is that it is relatively long-lasting (a year or more), so that start-ups can focus on business development rather than fund raising. Many private investors are also doing their best to secure government financing for their projects.

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3 3 13

20 30

40

24

5,0

0

10

20

30

40

50

60

1Q20141Q2015 1Q20141Q2015 1Q20141Q2015 1Q20141Q2015 1Q20141Q2015

Private funds Public funds Corporations PPP Business angels

32

Maturity

Activity of different types of investors by development stage

US$ M


Seed Start-up Growth Expansion

18

12.7

21 23

2.7

50

30.3 32

10

Market Structure II

Investor preferences between sectors saw no change in the first quarter of 2015. The VC market remained huge dominated by Soft and Internet (B2B and B2C), which took over 90% of the market by deal numbers and total value. The trifling number of industrial tech and biotech projects were sponsored mainly by private-public partnerships. This division is a simple reflection of risk levels: Soft and Internet ventures are saleable and a technique for their development has been put in place, while the development prospects and market for industrial tech and biotech ventures remain very limited, although there are major prospects on a global level, which state-backed investors can afford to target. Russia, unlike the US and South-east Asia, has nothing approaching a mass market for venture projects in spheres other than IT and media.

“A proper venture investor invests in innovative start-ups that already have a strong base and a 5-year development horizon. There is a new category of business angels in Russia, usually people who remain anonymous and who invest in classic dividend projects – soft development, travel and cloud technologies, e-commerce.” Lyubov Simonova, adviser to Almaz Capital fund

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Market Structure: investors

11

Private funds still dominant in 1Q2015


0

10

20

30

40

50

Seed A B C+ Exit

VC investments by round, 1Q2015, $ million

Business angel Corporations Public fundsPrivate funds PPP


$ M, w/o exits

- 10 20 30 40 50 60

PPP

Private funds

Public funds

Corporations

Business angelsBiotech

Industrial tech

Other tech

Computer equipment

Soft and Internet B2B

Other IT

Soft and Internet B2C

Commitments by government to support high-tech import substitution and improve the competitiveness of Russian venture start-ups abroad are having little or no effect on the ground. Most investors are focused on projects, which could generate sales on markets outside Russia as quickly as possible. Such projects are mainly in the Soft and Internet segment, so its dominance remains unchallenged. Investors are particularly keen on start-ups, which can sell their product or service directly to foreign companies (B2B-business model) rather than attempting to enter foreign consumer markets (B2C-business model).

0,2 0,9 3,2

25

16

1,3 0,3 0,5 0,9 5,1

0 1,7

1Q2014

1Q2015

Average deal amount by stage


US$ M

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Market Structure: segments

12


-10

0

10

20

30

40

50

60

70

80 VC investments by sector, 1Q2015 Investment w/o exits, $M

Enterprise management

Total Tech 10% IT 90%

Biotechnologies

Industrial technologies

Other technologies

Software and Internet

B2B

Marketing/ Advertising

Other B2B

services

Software and Internet

B2C E-commerce

Content providers

Other B2C services

Hardware

Platforms Other IT

“Several start-ups in our portfolio received investments from government development institutions. I think that government works quite efficiently as a pre-seed investor, but could do it even better. It is important that a private investor believes in a project strongly enough to attract government interest. Another tendency is [growth of] cross-border deals, and this indicates lack of confidence in the possibility of future sale of local Russian projects. Russian investors are searching for projects from which they can exit with a good return and are currently finding them in the US, Europe, Israel and Asia. The Russian market is in crisis and start-ups are fighting to hold onto the turnover results they have attained, even in ruble terms. Unfortunately, it is now very difficult to prove to investors that there is potential for consumer demand, scaling and channels for growth on the local market.” Sergey Fradkov, managing partner, iDealMachine

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systems 10.6%

Marketing and advertising

13.2% Other business

software 1.7%

Platform 33.2%

Other B2B solutions 41.3%


systems 7.3%

Marketing and advertising

48.0%

Other business software

0.6%

Platform 18.7%

Other B2B solutions 25.4%

Soft and Internet B2B

1Q2015 $28.1M

1Q2014 $15.7M

1

3

2

1

1Q2014 1Q2015

Amount, $M Quantity

8 4

13

7

1Q2014 1Q20150

0,5

2

5

1Q2014 1Q2015

4,0

12

6

10

1Q2014 1Q2015

3

9

5 4

1Q2014 1Q2015

Enterprise management systems Marketing and advertising Other business software

Other B2B solutions Platform

13

IN COOPERATION WITH

E-commerce 77%

Education 6%

Search and recommendations

9%

Social media 7% Content providers

10%

E-commerce 63%

Education 8%


9%

Social media 4%

Other 6%

Soft and Internet B2C

1

3

2 1

1Q2014 1Q2015

Amount, $M Quantity

Content providers 44

22

13 16

1Q2014 1Q2015

E-commerce

4

4

7

2

1Q2014 1Q2015

Education

5 2

12

5

1Q2014 1Q2015


4 0

9

6

1Q2014 1Q2015

0,2 2

5

11

1Q2014 1Q2015

Social media Other

0,02

1

0

1Q2014 1Q2015

Games

1Q2015 $33.3M

1Q2014 $56.4M

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Venture Fund Survey

15

The survey of venture funds active in Russia in 1Q2015 showed that the Russian VC market no longer has any “safe havens”, i.e. niches where investors feel confident of recouping their investments by sale of the project (e-commerce was previously such a niche). Almost all respondents said that the only dependable strategy in the current environment is portfolio diversification and employment of highly professional fund managers. Views differ as regards the efficacy of state-backed development institutions and venture funds in helping the sector through current difficult times. Only 40% of the funds interviewed are convinced that government is an efficient investor for companies at early stages, helping projects directly with grants and subsidies and providing additional financing to business angels and investment funds. Other respondents are very critical of the current role of government investments and their usefulness for the market, noting incompatibility of the efficiency criteria used by state officials and fund managers as well as imperfect co-investment techniques and lack of fixed “rules of the game”. There has been a major outflow of investors from the Russian market, as local assets become devalued. Nearly all respondents agree that preference is now being given to projects outside Russia due to their greater stability and better growth prospects. However, 20% of funds in the survey believe that relocation out of Russia for the sake of fundraising is costly and, for the most part, unjustified. The reverse process – Russian market entry by foreign projects in search of new points of growth – is so marginal that only 10% of the respondents even mentioned it. Overall, the market was in severe crisis during 1Q2015. 10 funds were interviewed: IIDF, Target Ventures, Maxfield Capital, Moscow Seed Fund, iDealMachine, Almaz Capital, Saint-Petersburg Pre-seed Investment Fund, Skolkovo Foundation, IT-Online Ventures, Starta Capital.

“Most foreign investors ask start-ups to transfer their businesses, intellectual property, and sometimes headquarters, to a foreign country. Most projects target markets in North and South America and in South-East Asia. To be successful on other markets you have to be physically present there. Russian companies, which can’t find investors at home, are working increasingly with foreign investors. Foreign markets have key importance for IT projects, but the Russian market is crucial for industrial and high-tech projects. So, in order to work with foreign investors and on foreign markets, companies often open a subsidiary abroad while keeping their headquarters and intellectual property in Russia. We are seeing a lot of such cross-border deals between Russia and China.” Evgeny Taubkin, head of the investment service, Skolkovo Foundation

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Methodology

Methods used in this research are based on recommendations developed by the Russian Venture Capital Association (RVCA) with the help of Russian VC market players. “Venture capital investments” are defined as investments of up to 100 million dollars in high-risk, high-tech and potentially highly profitable projects, targeting IRR of at least 15%. “Investments” are defined as acquisition of equity in a non-public company in return for investments and/or long-term financing with the possibility of equity conversion (including with suspensive conditions). Investments may be made by funds (Russian or foreign legal entities raising capital from more than one source for direct investment in non-public companies), individuals or groups of individuals. Only investments in companies working mainly on the Russian market were taken into account. Companies financed by Russian investors, but oriented mostly to foreign markets were not included the measurement of Russian VC investments. In this report “corporations” mean corporate funds (funds that are financed by their founding organizations from internal sources, but which may invest in venture companies not affiliated with the founding organization). Investments in market infrastructure and exits were not taken into account. Investments in market infrastructure mean investments in VC funds, business incubators, business accelerators, technoparks and other institutions that work in the venture market but are not venture companies. Our estimate of VC investment market size includes grants and investment loans. These sums were included in the total market size (even though a grant is a non-repayable subsidy for research and development), since, like repayable investments, they are used to finance commercial VC projects. This Report distinguishes four main stages in the development of VC projects, as follows Seed: the project exists only on paper or as a result of laboratory research. Start-up: a company is being set up or has been operating already for a short time, but it has not yet sold its products for money. Growth: commercial production, first turnover from sales. Expansion: expansion of sales, market share, output,

office space, etc. In the deal list below we also define project advancement by the funding stage reached in 1Q2015. We refer to the first round of investments as “Seed”, followed by rounds A, B, C, and denote any further stages as C+ We group all VC projects into 7 sectors: biotechnologies; industrial technologies; computer technologies and hardware; other technologies; B2B software/Internet; B2C software/Internet; other IT. Biotechnologies: healthcare, pharmaceuticals, diagnostics and medical equipment development. Industrial technologies: laser, energy, aerospace technologies, robotics, green and other technologies for industrial use. Computer technologies and hardware: telecommunications, data storage, mobile technologies and computer hardware. Software/Internet – B2B: applications and web services whose clients are enterprises (business management, marketing, IT product development solutions, etc.). Software/Internet – B2C: applications and web services whose clients are individuals (e-commerce, content provision, search engines, consumer finance solutions, education, games, social networks, etc.). The information used in the table of deals below was taken from mass media, open databases (Rusbase, AngelList, etc.), and internal sources of RMG Partners.

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Deal List for 1Q2015

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IN COOPERATION WITH

№ Deal date Project Investor Investor

type

Deal value,

$M

Company developme

nt stage

Investment round Sector Sub-sector

1 Jan Optoguard Nanotech Skolkovo PPP 1.23 Seed Seed Industrial_Tech Laser Tech

2 Jan Anews TMT Investments, Run Capital, 101Startup Private 2.7 Startup C+

Software_Internet_B2C Content Providers

3 Jan Dental Cloud Imperious Group Private 0.047 Seed Seed Software_Internet_B2B Platform/Middleware

4 Jan GeoCV Starta Capital (0,03); Moscow Seed Fund (0,062) PPP 0.092 Seed Seed

Software_Internet_B2C

Other B2C Internet services/software

5 Jan Pinxter Private investors Private 0.5 Expansion A Software_Internet_B2C

Search/Recommendations

6 Jan Ros.Taxi Yandex Corporate 1.8 Expansion A Software_Internet_B2B Other B2B software

7 Jan PostgreSQL Anton Suschkevich Angel 5 Expansion A Software_Internet_B2B Other B2B software

8 Jan Box2Box QIWI Corporate 0.5 Seed Seed Software_Internet_B2C E-commerce

9 Jan Rentmania FASIE Public 0.015 Startup Seed Software_Internet_B2C

E-commerce

10 Feb Netology group Buran Venture Capital, InVenture Partners Private 2.1 Growth A

Software_Internet_B2C Education

11 Feb

Energy exploration technology, Arkadiy Zlobinskiy FASIE Public 0.015 Seed Seed Industrial_Tech Other Industrial Tech

12 Feb

Med. Equipment sterilizer, Sergey Kavetskiy FASIE Public 0.015 Seed Seed Biotechnology Medical Equipment

13 Feb

Laser cutting and welding, Vitaliy Alekseenko FASIE Public 0.015 Seed Seed IIndustrial_Tech Laser Tech

14 Feb Bicycle security system,

FASIE Public 0.4 Seed Seed

Software_Internet_B2C


15 Feb Big data analyzer DIRECTUAL

FASIE Public 0.4 Seed Seed

Software_Internet_B2B

Other business software

18

IN COOPERATION WITH


type

Deal value, mln $

Company developme

nt stage


16 Feb Virtual reality analyzer FASIE Public 0.4 Seed Seed Other_Technologies Other_Technologies

17 Feb Ficus FASIE Public 0.4 Seed Seed Other_Technologies Other_Technologies

18 Feb RocketCallback Private investor Angel 0.06 Startup A Software_Internet_B2B Other B2B software

19 Feb RoboCV I2BF Global Private 3 Expansion A Industrial_Tech Robotics

20 Feb Mamsy ru-Net, Baring Private

15 Expansion A Software_Internet_B2C E-commerce

21 Feb Wicron Ashmanov and partners

Private 0.08 Startup Seed Industrial_Tech Robotics

22 Feb Wicron Skolkovo Fund Public

0.08 Startup Seed Industrial_Tech Robotics

23 Feb Netologia Group Venture Capital, Inventure Partners

Private 2.1 Startup C+ Software_Internet_B2C Education

24 Feb Vse evakuatoryi Rossii FASIE

Public 0.02

Seed

Seed

Software_Internet_B2C Other B2C Internet services/software

25 Feb PromoAtlas FASIE Public

0.02 Startup Seed

Software_Internet_B2C Other B2C Internet services/software

26 Feb Tictag.ru

Rostislav Kishenkov, Robot Food and Tech Angel 0.6 Startup Seed Software_Internet_B2C E-commerce

27 Feb MobilityLab IT Private 3 Startup A Software_Internet_B2B

Enterprise management software

28 Feb Bagazh iz ruk v ruki

Alexandr Borodich, Bogdan Yarovoi, private investors Angel 0.2 Seed Seed Software_Internet_B2B Other B2B software

19

IN COOPERATION WITH


type

Deal value, mln $

Company developme

nt stage


29 Feb Stealthy Messenger Nikita Khalyavin Angel 0.0001 Seed Seed Software_Internet_B2C Social Media

30 Feb Adaperio Rustam Baekenov Angel 0.03 Startup Seed Software_Internet_B2C E-commerce

31 Feb GetIntent AltairVC Private 0.4 Growth Seed Software_Internet_B2C Other B2C Internet services/software

32 Feb Poblizosti.pro Alexandr Timoshenko

Angel 0.2 Startup A Software_Internet_B2C E-commerce

33 Feb Lobster

Bogdan, Yarovoyi, Igor Yatrovoi, Igor Kaloshin, Ilya Mirochnik Angel 0.15 Startup Seed Software_Internet_B2C Social Media

34 Feb BigPicture Oleg Zakharchenko Angel 0.2 Growth Seed Software_Internet_B2C Social media

35 Feb Аvtoplanshet IIDF, Microsoft Seed Fund Public 0.04 Startup Seed Software_Internet_B2C


36 Feb ASU Bankomatyi IIDF Public 0.022 Startup Seed Other_Technologies Other_Technologies

37 Feb AFK IIDF, Microsoft Seed Fund

Public 0.04 Startup Seed Other_Technologies Other_Technologies

38 Feb NDFLka IIDF, Microsoft Seed Fund Public 0.04 Startup Seed Other_Technologies Other_Technologies

39 Feb Bez Pyili IIDF Public 0.022 Startup Seed Software_Internet_B2C E-commerce

40 Feb Instruktor po pokupke kvartir IIDF Public 0.022 Startup Seed Software_Internet_B2C E-commerce

41 Feb Moi Mechanik IIDF Public 0.022 Startup Seed Software_Internet_B2C Search/Recommendations

42 Feb Teledacha IIDF, Microsoft Seed Fund Public 0.04 Startup Seed Software_Internet_B2C


43 Feb Yu-test IIDF Public 0.022 Startup Seed Software_Internet_B2C Other B2C Internet services/software

44 Feb Appfollow IIDF Public 0.022 Startup Seed Software_Internet_B2B Marketing/Advertising

45 Feb Dreamroomer IIDF, Microsoft Seed Fund Public 0.04 Startup A Software_Internet_B2C E-commerce

46 Feb HappyCart IIDF Public 0.022 Startup Seed Software_Internet_B2C E-commerce

47 Feb Petshotel IIDF, Microsoft Seed Fund Public 0.04 Startup Seed Software_Internet_B2C E-commerce

48 Feb Promarket IIDF Public 0.022 Startup Seed Software_Internet_B2C E-commerce

49 Feb Scrut IIDF Public 0.022 Startup Seed Software_Internet_B2B Other B2B software

50 Feb WebSemantics IIDF, Microsoft Seed Fund Public 0.04 Startup Seed Software_Internet_B2B Marketing/Advertising

51 Feb Odarennyie deti IIDF Public 0.022 Startup Seed Software_Internet_B2C Social media

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IN COOPERATION WITH

№ Deal date Project Investor Investor type

Deal value, mln $

Company developme

nt stage


52 Feb Qubequ IIDF Public 0.022 Startup A Software_Internet_B2B Other business software

53 Feb PressIndex IIDF Public 0.022 Startup Seed Software_Internet_B2B Other B2B software

54 Feb Strizh IIDF Public 0.022 Startup Seed Computer_Technologies_Hardware

55 Feb Rentcar IIDF Public 0.022 Startup Seed Software_Internet_B2C E-commerce

56 Feb Robolanding IIDF Public 0.022 Seed Seed Software_Internet_B2B Marketing/Advertising

57 Feb Kartadoma IIDF Public 0.022 Startup Seed Software_Internet_B2C E-commerce

58 Feb CERAmarketing IIDF, Microsoft Seed Fund Public 0.04 Startup Seed Software_Internet_B2B Marketing/Advertising

59 Feb Good Trade IIDF Public 0.022 Startup Seed Software_Internet_B2C E-commerce

60 Feb Teslawatch IIDF, Microsoft Seed Fund Public 0.04 Startup Seed Other_Technologies Other_Technologies

61 Feb IIS Eldis IIDF, Microsoft Seed Fund Public 0.04 Startup Seed Other_Technologies Other_Technologies

62 Feb Chestnaya Cena IIDF Public 0.022 Startup Seed Software_Internet_B2B Marketing/Advertising

63 Mar Oktogo

MCI Management, Mangrove Capital Partners, ABRT Venture Fund, Ventech Private 5 Expansion C+ Software_Internet_B2C E-commerce

64 Mar Ensol Founders Private 0.5 Startup A Industrial_Tech Power Supply Tech

65 Mar Promeo Private 0.018 Seed Seed Software_Internet_B2C Social media

66 Mar Helpmed Private 1 Seed Seed Software_Internet_B2C Other B2C Internet services/software

67 Mar CartPay Co. FASIE Public 0.018 Seed Seed Industrial_Tech Other Industrial Tech

68 Mar CartPay Co. Private 0.06 Seed Seed Industrial_Tech Other Industrial Tech

69 Mar SocialKey Ads Digital Society Laboratory Corporate 3.5 Seed Seed Software_Internet_B2B Marketing/Advertising

70 Mar Promobit kamaFlow Private 0.2 Seed Seed Software_Internet_B2B Other B2B software

71 Mar Codeweb Skolkovo Public 0.33 Seed Seed Software_Internet_B2B Other B2B software

72 Mar Double Data

Columbus Nova, Almaz Capital Partners, Simile, Venture Partners, LETA Capital, I2BF Global Ventures Private 3.3 Startup A Software_Internet_B2B Other B2B software

73 Mar TicketsCloud

2be.lu Investment, Bogdan Yarovoiy Private 0.3 Seed Seed Software_Internet_B2B Platform/Middleware

74 Mar Electronic herd Eco-innovations Corporate 0.042 Seed Seed Software_Internet_B2B Other business software

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IN COOPERATION WITH

№ Deal date Project Investor Investor type

Deal value, mln $

Company developme

nt stage


75 Mar Trucker Path Renren Corporate 1.5 Startup A Software_Internet_B2C Search/Recommendations

76 Mar Wedvice

Doctornet.pro, Alexander Vorobev, Vitaly Fridzon Private 0.042 Seed Seed Software_Internet_B2C


77 Mar Life.film Alexey Karlov Angel 0.02 Seed Seed Software_Internet_B2C Other B2C Internet services/software

78 Mar Smart Wi-Fi Private 0.07 Seed Seed Software_Internet_B2B Marketing/Advertising

79 Mar Vseveda FASIE Public 0.018 Seed Seed Software_Internet_B2C Search/Recommendations

80 Mar Mobiforce FASIE Public 0.018 Seed Seed Software_Internet_B2B Other business software

81 Mar Solomoto Bloomberg Capital Private 8 Startup A Software_Internet_B2B Platform/Middleware

82 Mar BaseRide Technologies IncuVest Private 0.6 Seed Seed Other_IT Other_IT

83 Mar InstallTracker Angel 1 Seed Seed Software_Internet_B2B Platform/Middleware

84 Mar AMSRus the Untitled Private 0.01 Seed Seed Software_Internet_B2C Social media

85 Mar Tutzhdut the Untitled Private 0.01 Seed Seed Software_Internet_B2B Other business software

86 Mar Ediniy medicinskiy portal Angel 0.3 Seed Seed Software_Internet_B2C

Search/Recommendations

87 Mar Chistaya planeta Venture fund of Promsvyazbank Corporate 0.025 Seed Seed Industrial_Tech Other Industrial Tech

88 Mar RTM Diagnostika

Biofund RVK, Modernization and Technology Development Fund PPP 0.717 Seed A Biotechnology

Diagnostics & Research

89 Mar ArCycle Altair Capital, Almaz Capital Private 0.6 Seed Seed Software_Internet_B2B Other B2B software

22

IN COOPERATION WITH

Calendar of Events 2015

23

IN COOPERATION WITH

Event Calendar: January

24

Event City Date Organizer Institutional modernization of Russia - what is the role of

innovation ?

Moscow 14 RBC

Brand&Retail Session at the Konsumexpo-2015

Moscow 19 В2В Сontact

World Economic Forum Annual Meeting 2015

Davos-Klosters 21-24 World Economic Forum

Winter scientific school, Modern Biology & Biotechnology of the

Future, 2015

Moscow 25 Future Biotech

StartupLynch — project evaluation

St. Petersburg 30 Ingria Business Incubator

IN COOPERATION WITH

Event Calendar: February

25

Event City Date Organizer Russian Startup Tour Rostov-on-Don 3 Skolkovo Foundation

Cbonds Presentation in Hong Kong

Hong Kong 6 Cbonds

Russian conference of developers and users of

PostgreSQL

Moscow 6-7 RAEC

SuperInvestor U.S. 2015 San Francisco 9-11 NVCA

Russian Startup Tour Tomsk 11-12 Skolkovo Foundation Cyber Security Forum 2015 Moscow 12 RAEC

LP-GP Forum: Clean Energy & Sustainability

London 12 AltAssets

Electronic trading platforms in Russia: who's who

Moscow 12 Expert RA

TEDxMoscow Moscow 15 Skolkovo Foundation Russian Startup Tour Nizhny Novgorod 17 Skolkovo Foundation

Russian Mortgage Congress Moscow 19 Cbonds

The crisis of corporate debt . Resolution technology of

difficult situations between lenders and borrowers

Moscow 19 Vedomosti

14th project selection. Business Incubator IT park (Naberezhnye

Chelny)

Naberezhnye Chelny 21 IT Park Kazan

Belarus Startup 2015 Minsk 21

The Ministry of Education of the Republic of Belarus, IT

House The Ninth International

Conference on Digital Society Lisbon 22-27 IARIA

Internet of Things - IT Challenge

Moscow 25 Skolkovo Foundation

5th stage of KRITBI incubator acceleration program

Krasnoyarsk

25 LOGA Group, KGAU KRITBI

IN COOPERATION WITH

Event Calendar: March

26

Event City Date Organizer Implementation of prototyping

tools and software development strategy for international markets

Tel Aviv 02 РВC

Russian Startup Tour Kazan 03

Skolkovo Foundation

Communication of scientific breakthroughs (session at the

Communication on TOP conference)

Geneva

09 Top Communications GmbH

Mega-Projects of Russia and the world : Solutions That Work

Cannes 10 Kommersant

Russian Startup Tour Yekaterinburg 11

Skolkovo Foundation

Social & Mobile Gambling Conference

Moscow 12 Smile Expo

Conference: Internet of Things Moscow 12 Smile Expo

eTarget: Audience Management and Marketing in the Internet

Moscow 12-13 Ashmanov and partners, Rambler&Co,PRICE

M-health Conference Moscow 13 Smile Expo

Hong Kong Venture Capital Forum 2015

Hong Kong 15 HKVCA

iCOMference 2015 Moscow 17 The Runet, RAEK

Russian Startup Tour Astana 17

Skolkovo Foundation

Roundtable: defaults and restructuring of the corporate

bond market

Moscow 18 Cbonds

4th Annual Partner Conference RBC

Moscow 19 RVCA

Finance for growing business - 2015

Moscow 22 Expert RA

ICT in the financial sector in 2014

Moscow 24 CNewsConferences и CNewsAnalytics

Big data Russia Moscow 24 Publishing house "Open Systems"

IN COOPERATION WITH

Event Calendar: April

27

Event City Date Organizer Smart City - Innovations for Life Hanover 13 Vedomosti

Regulation and management of innovation in medicine and public

health (conference)

Oxford, UK

13 Synapse Intelligence

RBCC Just Networking London, UK 14 RBCC

IT- Outsourcing : anti-crisis optimization

Moscow 14 CNews Conferences

World Bank Briefing St. Petersburg 14 АЕВ Russian Startup Tour Minsk 14

Skolkovo Foundation

CEE private equity forum Warsaw 16 Incisive Events

3d Print Conference Almaty Alma- Ata, Kazakhstan 16 Smile Expo

North Caucasian Federal District IT- School

Stavropol 17 ANO Agency of Innovation Development

Taxation of oil companies Moscow 17 Russian Business Forum

HackDay #37 Yekaterinburg

Yekaterinburg

17 HackDay

HRPR CAMP — 2015 Minsk 18

Invest Show Alma- Ata, Kazakhstan 18 IRBIS

Imagine Cup Moscow 18 Microsoft World Economic Forum on East

Asia 2015 Jakarta 19-21 The World Economic Forum

Legal issues of the pharmaceutical industry : the interaction of government and

business in the new environment

Moscow 21 The Moscow Times

ICT in the energy industry in 2015

Moscow 21 CNews Conferences и CNews Analytics

IN COOPERATION WITH

Event Calendar: April

28

Event City Date Organizer Russian ICT company in Germany :

a strategy for success

Dusseldorf

21 NRW.INVEST, CNews Conferences

RBCC Expats Forum

St. Petersburg

22 RBCC

The bankruptcy procedure in Russia. Financial and Legal Aspects


Russian Forum of Sales 2015

Moscow 22 Prime Time Forums

Russian Startup Tour Ufa 22

Skolkovo Foundation

Russian Electronics : import substitution and development

prospects

Moscow 22 Vedomosti

RIF+KIB 2015 Moscow 22-24 RAEC Mobile Show Asia 2015 Singapore

22-23 terrapinn

DEMO Traction San Francisco 22 IDG Seminar, Business Process

Optimization Moscow 22-23 Andrey Koptelov, CNews

Conferences Finance 2015 : Management in

turbulence Moscow 23 Kommersant

ICT in health care: achievements and obstacles


TNW Europe Conference 2015 Amsterdam 23-24 The Next Web 15th Russian and 10th Kazan

Venture Fair Kazan 23-24 RVCA

IT- School of the Siberian Federal District

Ulan-Ude 24 ANO Agency of Innovation Development

Startup Day Stockholm

25 GeekWire

DEMOday – Graduation from the fifth accelerator IIDF

Моscow 28 IIDF

Wearable Technologies Conference 2015

Milan 29 The WT Group

Russian Startup Tour Moscow Region 29

Skolkovo Foundation

IN COOPERATION WITH 29

Event City Date Organizaer Startup School LIFTёrnaya 2015 Astrakhan 4 IT-park FABRIKA, IIDF

TechCrunch Disrupt New York

4-6 TechCrunch

World Economic Forum on Latin America 2015

Mexico 6-8 The World Econ. Forum

2nd International Conference, Modern applications of

nanotechnology

Minsk 6-8 The National Academy of Sciences of Belarus

Foresight fleet in 2015 Astrakhan 12 RVK, SIA

CSTB -2015 Moscow 12-15 RAEC Management of corporate debt.

Anti-crisis measures Moscow 14 Kommersant

Startup Expo Eurasia

Мoscow 15 PFUR, Launch Gurus, RusBase

IT-School of the Volga Federal District

Ulyanovsk 15 ANO Agency of Innovation Development

Regional consulting practice sessions

Voronezh 18 LOGA Group

Impulse Good annual award Moscow 19 Our Future Fund

Investments in Russia: prospects, challenges and

opportunities for the real estate market

Tokyo 20 Kommersant

ITEX’15 Malaysia, Kuala Lumpur

21 C.I.S NETWORK SDN BHD

National Russian Conference, Best Practices of Project

Management - 2015

Tomsk 21-22 NP PIT Business Partners

6th Investfunds Forum -Institutional Investors

Conference

St. Petersburg 21-25 Cbonds Congress

Event Calendar: May

IN COOPERATION WITH

Event Calendar: May

30

Event City Date Organizer

12th CIS and Baltic Bond Congress

Baku 21-22 Cbonds Congress

The Russian market CRM: trends 2015


Corporate debt and financial restructuring

Moscow 21 Russian Business Forum

IT-School of the Urals Federal District

Yekaterinburg 22 ANO Agency of Innovation Development

M & A 2015: opportunities and risks in terms of sanctions


BioSciencesWorld 2015 Rome 24-29 IARIA 13th Annual International Conference on Finance

Athens 25-28 ATINER

Regional consulting practice session

Perm 26 LOGA Group

Bank equipment: new possibilities Moscow 26 РBC

12th Flagship Conference - Russian Economy: Quo Vadis

Moscow 27 АЕВ

3rd VC Forum Moscow 28 Cbonds Congress, Preoveca

Corporate communication system 2015: New Solutions


St. Petersburg Internet Conference St. Petersburg 28-29 RAEC, Trinet Group

9th International Conference on European Science and Technology

Munich 28-29 The organizing committee of ICEST

Productive efficiency: Strategies, managers and technology


Tax strategies in Russia. Course for deoffshorization


IN COOPERATION WITH

Event Calendar: June

31

Event City Date Organizer Final of Russian Startup Tour —

Startup Village Moscow 2 Skolkovo Foundation

Infosecurity Europe 2015 London 2 Reed Exhibitions RBCC Business Forum 2015:

Conference London 2-3 RBCC

Russian Gaming Week London 3 Smile Expo 9th Siberian Venture Fair Novosibirsk 3-4 RVCA

Information security of business and government agencies:

development in new conditions


TECHNOPROM 2015 Novosibirsk 4-5 The Government of the Novosibirsk Region

Corporate Fraud Moscow 5 Russian Business Forum IT-School of the Far Eastern

Federal District Vladivostok 5 ANO Agency of Innovation

Development MixAR Moscow 6 26dotss

INOTEX 2015 - The 4th International Exhibition of

Innovation and Technology

Tehran 8 Pardis Technology Park

Cost optimization on IT infrastructure in 2015: how to

overcome the crisis


Actual issues of intellectual property


ICT in insurance: effectiveness in new conditions


Regional consulting practice session (Verkhnyaya Salda)

Yekaterinburg 10 LOGA Group

Rapid.Tech 2015 Erfurt 10 Messe Erfurt GmbH

IN COOPERATION WITH

Event Calendar: June

32

Событие Город Дата Организатор Festival FUTUR EN SEINE in

Paris - the sixth issue Paris 11 Cap Digital

Program of acceleration of the Ural region "Factor"

Chelyabinsk 15 NP Business Angels Urals

Bio International Convention 2015

Philadelphia 16 Biotechnology Industry Organization

BI: Market of New Opportunities Moscow 16 CNews Conferences

Accelerator technology startups as part of the Youth Forum PFD

"iVolga 2015"

Samara region., Pribrezhnyii town

18 The government of the Samara region, the Federal Agency for Youth Affairs

IT-school of Crimean Federal District

Sevastopol 19 ANO "Agency of Innovation Development»


Naberezhnye Chelny

22 LOGA Group


Grozny 24 Moscow Technological Institute

Russia and CIS Investment Forum

Zurich 24 Hansa Fincom

Start in Garage Minsk 27-28 RIS Ventures

IN COOPERATION WITH

Event Calendar: July

33


NANO KOREA 2015 Seoul 1 Nanokorea

Summer School of Development and

Entrepreneurship HSE {sun} 2015

Venue to be confirmed

6 Business Incubator of the Higher School of Economics, IIDF

GSMA Mobile World Congress Shanghai 2015

Shanghai 15 GSMA

Summer School 2015 of Academpark

Novosibirsk 21 Academpark


Game Developers Conference 2015

Cologne 3 United Business Media LLC

gamescom 2015

Cologne 5 BIU

ITCE 2015 Taegu 19 KOTRA 13th Triple Helix International

Conference 2015 Beijing 21-23 Tsinghua University

Event Calendar: August

IN COOPERATION WITH

Event Calendar: September

34

Event City Date Organizer 13th International Banking Forum,

Banks of Russia – 21st century Sochi 2-5 Association of Regional Banks of

Russia

Startup Debate: Journey of a Russian businessman

Moscow 3 GVA LaunchGurus, Moscow Youth multipurpose center

DLD Tel-Aviv Tel Aviv 6-12 Yossi Vardi Annual Meeting of the New

Champions 2015 Dalian 9-11 The World Econ. Forum

CTIA Super Mobility Week Las Vegas 9-11 CTIA World communication forum Davos-

Kyiv session 2015 Kiev 10 WCF-Davos

V Baikal Venture Fair Irkutsk Date to be confirmed

RVCA

4th Interbank Conference, Money and bill market

Yaroslavl 11 Cbonds congress

3d Print Conference Kiev

Kiev 11 Smile Expo

Video monitoring: analyst, clouds and not only


International Investment Forum, Sochi-2015

Sochi 17-20 The Russian Government

2nd Great Internet Forum BIF 2015 Almaty 18-19 Internet Avenue

The 9th Annual Asian PE & VC Conference

Hong Kong 21-24 SuperReturn Asia

Russian National Science Festival 2015

Ufa 25-27 The Ministry of Education and Science

Bitcoin Conference Kiev Kiev 26 Smile Expo

Russian National Science Slam Samara 26 Regional Centre of Innovation

Iran Telecom 2015 Tehran 26 PALAR Samaneh

Contact Centers 2015: development trends


Media Business. Reloading Moscow 30 Vedomosti

7th Russian Congress of Private Equity

Moscow 30 Cbonds congress

IN COOPERATION WITH

Event Calendar: October

35


Big Data 2015 Moscow 1 CNews Conferences Open Innovation 2015 Moscow 1-31 Innovation Forum Foundation

Microsys 2015

Stuttgart 5 P. E. Schall GmbH & Co. KG

BIOTECHNICA 2015

Hanover 6 Deutsche Messe

St. Petersburg International Innovation Forum 2015

St. Petersburg 7-9 Committee on Industrial Policy and Innovation

RACE Fourth International Congress and Exhibition of

affiliate programs and marketing in Russia

Moscow 8 Smile Expo

Meet Magento Russia Moscow 9 Turnkey Ecommerce Private Client Russia & beyond London 13-14 Adam Smith Conferences

itCOM 2015 Krasnoyarsk 14-16 JSC Krasnoyarsk Fair

Bio Japan 2015 Yokohama 14 IDCEE 2015 Kiev 15-16 TA Venture VC fund

GITEX Technology Week 2015 Dubai 18 Summit on the Global Agenda

2015 Abu Dhabi 25-27 The World Econ. Forum

9th International Biotechnology Forum and Exhibition "RosBioTech 2015"

Moscow 28-30 The Ministry of Education and Science

AccEssMeeting UAE-Russia: Business Investment Road Show

2015

Abu Dhabi

28-29 Strategy Links

CeBIT India 2015 Bangalore 28 Robotekspo 2015 Moscow 29-31 Expocentre

Annual Forum, Retail 2015 Moscow 29 Kommersant

IENA 2015 Nuremberg 29

IN COOPERATION WITH

Event Calendar: November

Event City Date Organizer Wealth Innovation Forum

Geneva Geneva 1 CIS Wealth

Nordic Private Equity Conference 2015

Copenhagen 6 Private Equity Conference

The 8th Annual SuperReturn Middle East 2014

Dubai 8-11 SuperReturn Middle

IV Moscow International Financial Forum

Moscow 10-11 Hansa Fincom

Russia Risk Conference 2015 Moscow 12 Cbonds Congress, PRMIA

CNEWS FORUM 2015 Moscow 12 Cnews Conferences

Discover ICT Yekaterinburg 24-26 LLC Financial and Analytical Systems

11th annual conference Retail in Russia

Moscow 24 Vedomosti

Russian Financial Forum Moscow 26-27 Vedomosti

Internet and business. Russia Moscow 27-28 Ashmanov and partners, RAEC

6° Russian M & A Congress Moscow Cbonds congress


Videoconferencing: the experience, technology and

prospects


13th Russian Bond Congress St. Petersburg 3-4 Cbonds Congress German Private Equity

Conference Frankfurt 5 RVCA

CeBIT Bilisim Eurasia 2015

Istanbul 17

36

Event Calendar: December

IN COOPERATION WITH

Contacts

We are very interested in the opinion of our readers, so if you are an investor, a venture entrepreneur or otherwise interested in Russia’s venture capital market, we will be most glad to receive your feedback and suggestions to help us improve our reports. Please send your feedback and suggestions to [email protected] The report was prepared by:

RMG partners is grateful to all those, who helped in the preparation of the report

37

Michael Demidov Expert, analyst [email protected] +7 499 390 88 19 Arseniy Dabbakh Managing director RMG partners [email protected] +7 495 668 13 00

Olga Chapaeva Analyst [email protected] Adrien Henni Founder, Editor-in-Chief EWDN [email protected]

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