The document summarizes the Russian startup story and internet landscape. It notes that while Russia has a large population and fast internet growth, most Russian services and developers focus internally on the Russian market ("RuNet") and in Russian, with some copying Western sites. It identifies the "Big Three" Russian internet companies - Yandex, Mail.ru, and Rambler - and provides usage statistics. In conclusion, it emphasizes that new ideas are now more important than social networks or bookmarking tools for startups.

1. The Russian Startups Story
Gleb A. Kaplun Tampere
7.-9.10.2008
Etera JSC Russia
Web2People

3. What’s all around the seed-funding?
Best European and US-practice

4. Venture Capital, Mergers
Angels, 3F
Seed Capital & Acquisitions, Alliances Public
Company
Early Stage
Revenue
Later Stage
IPO
Valley of Death
Time

5. All trademarks and registered trademarks are the property of their respective owners.

6. All trademarks and registered trademarks are the property of their respective owners.

7. All trademarks and registered trademarks are the property of their respective owners.

8. Russia:
Total Area: 17,075,200 sq km
(approximately 1.8 times the size of the US,
50 times the size of Finland)
Population: 140,702,096 people
(approximately 2 times less than the population of the US)
Source: CIA Fact Book, Wikipedia; Image Source: Wikipedia

9. Russia Today:
The “Moscow City”
12 mln citizens officially

10. Russia Today:
The “Gazrpom City /
Okhta-Center”
in St.Petersburg
(5 mln citizens officially)
Source: Ohta-Center Web-site

11. Penetration of Internet in Europe
percentage of country population
Source: “FOM - Internet in Russia / Russia in Internet - Spring 2008”

12. Internet Users by Country in Europe
million users
Source: “FOM - Internet in Russia / Russia in Internet - Spring 2008”

13. Russia Has Fastest Growth of Internet
Population in Europe
(Change from Sep 2006 to Sep 2007, %)
Source: “Fastest Growing European Internet Audiences” - comScore, Inc., UK, Nov 2007

14. What does any startup need?
1. The Big Market
2. A Rich Customer

15. What’s up in Russia
Is the Russia on the same plate

16. Most of Russian services are
focused on internal market and
speak only Russian

17. The Russian web-developers
are focused mainly on the
internal “RuNet” projects
Some of them are copies...

18. How does .com become .ru?
.COM .RU

19. Copycats
ODNOKLASSNIKI.RU VKONTAKTE.RU

20. www.classmates.com / www.odnoklasniki.ru

21. www.classmates.com / www.odnoklasniki.ru

22. www.facebook.com / www.vkontakte.ru

23. www.facebook.com / www.vkontakte.ru

24. RuTube is a Russian video
sharing site inspired by
YouTube. As of March
2008, it has 400,000 daily
users and more than 40
million video views a month.
Founded in 2006
Acquired by Gazprom
Media for $15 mln in 2008
Source: CrunchBase All trademarks and registered trademarks are the property of their respective owners.

25. Ozon is a Russian
biggest internet retailer
inspired by Amazon.com.
As of July 2008, it has 2
400,000 users and more
than 30 million page
views a month.
Founded in 1998 by
Reksoft in St.Petersburg
Source: Ozon’s corporate site All trademarks and registered trademarks are the property of their respective owners.

26. Russian Internet Industry Leaders
- The Big Three -
Yandex is the russian flagship
search engine and the russian
internet industry leader which
accounts for approx. 54% of all
russian search traffic.
Generates 920 million search
results pages monthly.
Private, Launched in 1997,
Profitable
Source: Wikipedia, Yandex All trademarks and registered trademarks are the property of their respective owners.

27. Russian Internet Industry Leaders
- The Big Three -
Usage % of total users
Users
frequency in Russia
Monthly 13.55 mln 30.1%
Weekly 10.52 mln 23.4%
Daily 5.56 mln 12.3%
Source: TNS Gallup All trademarks and registered trademarks are the property of their respective owners.

28. Russian Internet Industry Leaders
- The Big Three -
Mail.ru is the largest free e-
mail service in Russia and a
number of co-branded
services
@ 42 millions unique users
monthly
Founded in 2001
Public company
Source: Wikipedia; Alexa All trademarks and registered trademarks are the property of their respective owners.

29. Russian Internet Industry Leaders
- The Big Three -
Usage % of total users
@ Users
frequency in Russia
Monthly 13.50 mln 30.0%
Weekly 10.43 mln 23.2%
Daily 5.85 mln 13.0%
Source: TNS Gallup All trademarks and registered trademarks are the property of their respective owners.

30. Russian Internet Industry Leaders
- The Big Three -
Rambler is the second largest
search engine in Russia and the
third internet portal in russian.
Owned by Rambler Media (Prof
Media)
Founded in 1996
Begun is a part of Rambler
Media and the leading context
advertising service in Russia was
acquired by Google for $140 mln
Source: Wikipedia All trademarks and registered trademarks are the property of their respective owners.

31. Russian Internet Industry Leaders
- The Big Three -
Usage % of total users
Users
frequency in Russia
Monthly 8.73 mln 19.4%
Weekly 5.85 mln 13.0%
Daily 2.77 mln 6.2%
Source: TNS Gallup All trademarks and registered trademarks are the property of their respective owners.

32. Top 15 Russian
Web Properties by
Audience Reach
(Total Russian
Federation, Age 15+)
Reached percentage
Source: “comScore World Metrix” - comScore, Inc.,
UK, Feb 2007

33. Top 15 Russian
Web Properties
(Total Russian
Federation, Age 15+)
Average Minutes per Visitor
(Total is 1078 min)
Source: “comScore World Metrix” - comScore, Inc.,
UK, Feb 2007

34. Top 15 Russian
Web Properties
(Total Russian
Federation, Age 15+)
Average Minutes per Visitor
(Total is 1078 min)
Source: “comScore World Metrix” - comScore, Inc.,
UK, Feb 2007

35. 694 Million People Currently Use Internet
Worldwide According To comScore Networks
181 Million Sites all over the Internet
Source: comScore, Inc.; NetCraft

36. No more social network or
social bookmarking tool needed!
The new ideas matters!
Source: comScore, Inc.

42. Thank You!
Gleb A. Kaplun
http://www.linkedin.com/in/lithfin
www.web2people.net