IPOboard new English Version

1. Access to capital for growing innovative
companies and small scale businesses
Moscow, April 16, 2012

2. Small Scale Business growth in Russia…
Russia EU
Entrepreneurs
per 1000 people 6 30
30% 60%
Small firms’ share in
the total number of
all businesses
Percentage of GDP
20% 70%

3. …is impossible without development of
high-tech production
16,3
% 13,5
% 7,6
% 0,25
%
China USA Germany Russia*
Worldwide exports of high technology products
*5-10%** - Russian Government objective by 2020
The innovative development strategy of Russia for 2020,
approved by the Decree of the Government of the Russian Federation
on December 8, 2011 N 2227-р

4. It needs urgent investments
"Our country is now among the top ten world leaders in financing R&D
activities. We have recently increased public spending on this sector and take
the eighth place in the world concerning investment in R&D, coming up to such
countries like Great Britain and France and outrunning Italy and Canada, "-
said Mr. Medvedev.
However, he highlighted insufficient growth of private investment in innovation.
"Business is not so dynamic as we expected. Of course, there are some
reasons for it. Russian companies’ costs on innovative and technological
development have augmented from 190 billion rubles in 2006 to 350 billion
rubles in 2010. I can admit that this growth is not significant. As a matter of
fact, it is rather a weak growth, "- declared the Russian president.
RIA Novosti. OCTOBER 29, 2011,

5. Russia has money for small scale business
100 000 1 000 000 000 000 rubles
people with spare capital more than will be spent on modernization in 2012 (October
$1 million. HNWI (World Wealth Report 2011) 2011, Russian President Dmitry Medvedev)
750 000 $ 16 800 000 000
private investors registered in RTS-MICEX, total amount of capital in the Russian Venture
31% of turnover ($1.05 trillion in 2011) Capital Association (RVCA)
$ 68 000 000 000 $ 22 000 000 000
in individual deposits in Russian banks Pension funds: (5-10% can be invested in alternative
(Rosstat) assets)

6. but it can not find the way to small
business
Data Bases
IIM RTS-MICEX contain information about start-up projects,
only for public companies however are mostly informational
absence of efficient systems which provides
RTS Board, SecondShares informational disclosure of projects and facilitate
secondary market for open joint-stock tracking companies’ life cycle
companies where the issuer is not an absence of expertise
initiator lack of investors (mostly consultants and
mediators)
absence of real transactions (professional
projects)
lack of insurance systems of transactions and
settlements

7. is an online information
and trading system for
attracting capital for
leading companies in the
innovation sector of the
Russian economy

8. is a platform integrated in IIM
RTS-MICEX, which may become
one of the infrastructure
elements of Russian
development institutions and
capital market improvements

9. • creates investors’ data base for
Russian innovation sector and for
medium and small scale business
• facilitates access to capital for the
whole range of perspective young
companies
• provides market with new prepared
companies

10. Market Participants Analytics Information and
Interconnection and Training Transparency
Market analysis
Platform for efficient cooperation of Transparency improvement
Project expertise
entrepreneurs and investors, joint of young sector of
Trainings on capital
projects realization, information innovation
attraction for innovative
exchange, networking and also for Monitoring systems of
entrepreneur
informal communication companies’ financials
Promote collaboration with development Development of corporate
institutions management culture

11. Start-ups Growing Companies IPO Preparation
Initial Level Base Level Pre-IPO Level
Requirements:
Requirements: Requirements:
to have a board-assistant,
to be an innovation sector company, to to have a board-assistant, estimated
capitalization at least $5 million,
have legal entity and to provide brief capitalization at least $1 million, to
company valuation and investment
company presentation provide an investment presentation
memorandum
Information Mode Negotiations Auction
Clearing and Settlement Block is going to be implemented on the basis of National Settlement Depositary RTS-MICEX

12. Efficient way of company
presentation for
investors
Information and Private Investors
analytical support of
companies and State Institutions
entrepreneurs Entrepreneurs-
innovators
Online activities
(seminars, webinars, Companies
online conferences) for
investors
and partners

13. • Encourages growth of participants of
sector of innovation
• Meets necessity of small scale
business in capital
• Connection with venture and
innovative association
• Partnership with leading Russian
exchange – RTS-MICEX
• Cooperation with institutions os
development
• Open architecture - the ability to
connect with external systems

14. Second Market – is a SEC regulated trading platform for alternative assets which is
registered by a broker or a member of FINRA, MSRB и SIPC, founded in 2004
Provides more than 50 000 private and institutional investors, and more than
25000 private companies.
Shares Post – establised in 2009. This platform allows investors to acquire shares of
leading technological companies. The system permits to make and process
transactions automatically and assure escrow settlements.
Provides more than 100 000 private and institutional investors, and 152
companies.
ASSOB (The Australian Small Scale Offerings Board) – is a system for attraction of private
and equity capital of medium and small capitalization, created in 1997
Number of investors: more than 7500, funds raised - $122 million, major
placing is from $250 thousand to $5 million.

15. Initial Stage Growth IPO
8200 114 Projects, approved by
Projects of Fund for
Promotion of Small
RUSNANO 100 companies in 3 years
RVC Fund
Enterprises in
Science and 104 Projects (24 companies are on
IIM RTS-MICEX)
Technology
Projects of funds of
100 private equity and
46 “Skolkovo” members
venture capital
Foreign companies
30 with the "Russian feedback"
400 RVC Seed Fund
projects 20 CIS companies
200 potential issuers of MICEX
> 10 000 ~ 600 ~ 100

16. 2011 2012 2017
Working in test mode
New comprehensive on-line
version 500
18 companies Techniques and standards are companies
being elaborated by the working
5 companies became
“Skolkovo” residents, 2 of them
got grant financing
group of IIM
Up to 50 companies
10 000
investors
Attraction of up to 1000 investors
450 investors and users
and first transactions

17. See you on