The document summarizes the Russian venture capital market, including major players, market size, and development institutes. It analyzes the performance of key state development institutes such as RUSNANO, RDIF, RVC, Skolkovo, and FIID based on investments made, portfolio companies supported, and financial performance. It finds that while some have effectively supported industry, many have struggled financially. It also provides an overview of the fund's target industries and sample portfolio companies in growing technology sectors like fintech, IoT, and SaaS.

1. 4 April 2015
Center of Mathematical Finance.
Russian VC overview
Team 4

2. Major players, market size
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Startup Academy
Skolkovo
Accelerator
GVA LaunchGurus
Accelerator FDII http://www.iidf.ru/
Business
accelerator MSU http://...
Accelerator QIWI-
Universe http://universe.qiwi.com/
ABRT-Mangrove
CEO Camp http://abrtcamp.com/
Startup
Accelerator iDeal
Machine
http:///
AcceleratorsFunds
Name
Invested projects
amount
Runa Capital 35
Ru-Net Holdings 25 (не менее)
TMT Investments 21
Bright Capital
Energy
21
Prostor Capital 15
Phenomen
Ventures
15
Laif.sreda 14
Leta Capital 13
i2bf 12
Veb-innovazii 12
Bright Capital
Digital
11
iTech Capital 11
Frontier Ventures 10
Almaz Capital 8
Venture deals149 ($ 480,9m)
Institute for the Development
Skolkovo
Rosnano
RDIF
RVC
FDII

3. Development institutes roadmap
> Going this way, we can make an aggregate valuation of the organization from two
points of view
Effectiveness analysis needs individual approach and metrics, because of different goals and strategies.
I have done ranking system in order to evaluate these organizations and compare them with each other.
Averagesumofinvestments,mlnrub
Stage of development cycle
seed venture later
10
100
500
1000
1500
ROSNANO
RDIF
FIID
RVC
Skolkovo
Funds act in two roles:
1) As a typical capital fund
2) As a development institute
So, we need to take into consideration
both roles: fund is…
…good in two roles
…good in only one role
…not good in both roles
Investment effectiveness valuation is
based on comparison with alternative
profitability.
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4. ROSNANO is still unprofitable despite of long history of investments
> ROSNANO has good performance in its development role, but has not good financial
performance
ROSNANO: est. 2007 | key goal: development of nano-tech industry in
Russia
Key figures:
- ~25 bln rub under management
- ~70 manufacturers started
- very clear and transparent financial reports
But there are some disadvantages at the same time:
- the fund has net loss last 3 years
- no dividends paid
- average profitability is only ~30%
- 41 approved project were closed due to different reasons
RVC: est. 2006 | key goal: development of the venture capital market of the Russian Federation
with the aim of improving the competitiveness of the innovative sector of the country's economy
Key figures:
- established 18 different investment funds (2 of them in USA)
- 140 investments made
- 40 projects were successful
- very clear and transparent financial reports
But there are some disadvantages at the same time
- Only 0,5 bln doll under management
- Only 9 projects reached expenditure stage
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5. RFID is profitable because it continues to attract foreign investments despite of troubles in Russian
economy
> RFID can be rated as the most successful development institute and financial fund
in comparison with other government development institutes
RDIF is a $10 billion fund est. 2011 to make joint equity investments in partnership with other sovereign funds primarily in
the Russian economy.
Performance as a development institute:
- attracted investors from Qatar, Italia, China and other countries
- was not included in sectorial suctions` list
- made more than 20 investments in partnership with foreign partners
- 12 deals were closed since fund was started
- $10 bln was invested in RF economy by foreign partners
- Invested 180 bln RUB last year
Yield is higher
than yield in
alternatives
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6. FIID has very short investment history, so financial performance can`t be measured,
Skolkovo has bad reputation and recognized as unprofitable by state authorities
> Skolkovo has not good perspectives due to bad reputiation and FIID has very short
history to make measures
FIID est. 2013 in order to make investments
on
seed and pre-seed stages
Performance as a development institute:
- Invested 15 mln doll in hundreds
companies
- $100k – average investment
- Lobbied number of law initiatives
But financial performance can`t be
measured due to unavailability of
financial reports and short history.
Performance as investment fund: n/a
Rate: n/a
Skolkovo est. 2010 technological
innovative building in order to
commercialize ventures
Performance as a development institute:
- In partnership with MIT
- established 5 specific funds for different
areas of technologies
Performance as investment fund:
- have bad reputation due to corruption
scandal (facts of financial loss were
published)
- have troubles with investments
- has been recognized as unprofitable by
state authorities
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7. TOP-deals during 2008 -2015
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Since there were a limited number of deals occurring seven years ago(30-50 companies
per year), there is correspondingly small number of big exits occurring today.

8. Key state initiatives to promote VC in Russia
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1) Promote convertible bonds in a government development funds as a
key financial instrument
2) Provide tax-free periods for newly established companies
3) Eliminate double taxation for investors
4) Reduce tax payments from dividend income
other once
Potential partners

9. 0
50
100
150
200
250
2010 2011 2012 2013 2014 2015 2016
75,2
90,1
108,3
129
152,6
179,9
210
Cloud system infrastructure
services (IaaS)
Cloud application
infrastructure services (PaaS)
Cloud application services
(SaaS)
Cloud business process
services (BPaaS)
Cloud advertising
0
10
20
30
40
50
60
2011 2012 2013 2014 2015 2016 2017
7,3
11,8
18,6
28,5
38,4
45,3
50,1
services software hardware
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Big Data market forecast
Public cloud services by segment
Registered vehicles with IoT application by region
Fintech market forecast
blnUSD
CAGR 38%
blnUSD
CAGR 19%
3,1
32
103
250
0
100
200
300
400
500
2014 2018 2022 2026 2030
North America Europe Asia-Pacific Rest of world
CAGR 36%
blnUSD
66,92
103,66
0
20
40
60
80
100
120
2014 2019
Financial technology market size
CAGR 10%
blnUSD
405
Source: Business Insider, McKinsey, EY
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Our target companies are on the high-growing sectors

10. Industry: Financial Services
Investments: $30M
Money transfer startup that uses
peer-to-peer technology to charge
significantly less than banks to send
money abroad
Industry: b2b, SaaS
Investments: $1M
Agile business management
toolset that integrates people,
projects, and businesses (internal
or internal) seamlessly in one place
Industry: Internet of Things, SaaS,
Security
Investments: $5M
Cloud video monitor service
Industry: Internet of Things, Cars
Investments: $10M
Mobile application to manage
remotely your car (with Remoto
device installed).
Portfolio breakdown
Key companies and portfolio information
1 5 4 1
Number of investments by stage
Seed A B D+
21
3018
10
9
9
5
Invested capital by industry, US$m
IoT fintech
E-commerce Сonsumer web
Soft HR
Saas
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11. № Company Round Industry Amount, US$m
1 Ivideon A IoT,Cloud, Security 5,0
2 TranferWise D+ Finance 30,0
3 Remoto B IoT,Cars 10,0
4 Crowd System A IoT,B2B 6,0
5 HiConversio B E-commerce 10,0
6 Carprice B Consumer web 10,0
7 Picture Manipulation Inspector A Soft 9,0
8 Ecwid B E-commerce 8,0
9 Pruffi B HR, 9,0
10 Akselworks A Saas,B2B 4,0
11 VeeRoute Seed Saas 1,0
102,0
Portfolio
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