Fast Lane Ventures is a leading venture capital firm focused on investing in promising internet companies in Russia. In 2011, they launched 12 new companies after reviewing over 500 business models. They focus on sectors like e-commerce, consumer services, B2B services, content/advertising, and social media. Some trends they expect to see growth in include regional e-commerce development, targeted/retargeted advertising, and new media formats. The Russian e-commerce market is growing rapidly but still small compared to other countries. Promising niches include categories with high volumes/margins and repeated purchasing. Local commerce also has potential as mobile internet usage grows.

1. The landscape of Russian Internet:
most promising niches
1

2. Who we are
Fast Lane Ventures capitalizes on the significant opportunities within the Russian internet
sector – one of the most growing sector of economy
• Fast Lane Ventures is a leading developer of internet companies in the high growth Russia
internet market. Our strategic focus is internationally successful ideas in consumer Internet
• Unlike traditional venture funds we act as both an operational partner and investor at the same
Who we are time: we invest at seed-stage and provide our portfolio companies full operational support,
management and promotion after their launch
• We believe in Russian great future and head a new wave of Russian consumer internet.
• 5 market sectors covered: e-commerce, consumer service, b2b service, content & advertising,
social services
• 15 companies established
Achievements
• 1 company sold
• 55 million USD of investments attracted in Fas Lane Ventures and its portfolio companies
• 700 employees are building start-ups with Fast Lane Ventures
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2

3. How we get new ideas
In 2011 we launched 12 companies, after considering 580 business models, and
discussing 146 projects in detail on weekly IC There four major sources of incoming ideas:
We issued ‘GO’ on 12 Management,
shareholders and Submitted Internal Analysis of investors
companies… partners projects analysis portfolios
Heverest DomGeo TravelRent 130 345 45 60
VitaPortal OdinOtvet RentHome
587
Preliminary analysis
Juvalia Kommerstate Lokata
PinMe Eventmag HomeFair Step 1 146
Step 2 50
Our Investment Criteria:
•
•
‘Go’ idea has to be based on proven business model
Project has clear and fast road to market
Step 3
• Fast Lane Ventures can effectively contribute in day-to-day operations 22
• Project meets seed (EUR 0,3M-0,7M) and cumulative funding (up to
EUR 3M-20M) requirements
• Currently market niche has low level of competition and project is
positioned to capture leadership
• Business model is ‘marketing driven’ and allows scalability GO
• There clear exit opportunities
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4. Our projects
Ecommerce
projects:
•Sapato – Shoes
store (sold to Ozon
Feb,2012)
•Heverest – Sport
and outdoor store
•HomeFair – Home
goods and
furniture (will
launched April, 30)
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5. Market overview

6. What projects will be funded in 2012
Investors will invest in project that will solve the
real customers or enterprises problems
Skype –free calls around the World,
Dropbox - cloud storage and
collaboration, Facebook - connect and
share, Linkedin - know what you friends
are doing and expose yourself for
headhunting, Groupon – get goods and
services with great discounts.
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7. Some obvious trends 2011
• Regional Development
Ecommerce • Categories: Home goods, furniture,
• Infrastructure and payment providing for ecommerce
• Targeting and retargeting (not only Google, Criteo, Sociomantica)
Advertising • Step from last-click analytics to multichannel marketing
• Mobile ad
• Collaborative news creation
• New format in news (animation, infografics, maps, panoramas)
• Content on demand
Media
• Multichannel news broadcasting
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8. Russian E-commerce:
Double digit growth
Spending on the internet is growing fast, but it’s still relatively low compared to other nations
25 E-commerce turnover, Russia, $ bn
Russia e-commerce market:
20
20 • 5-6k internet shops
• Most developed are discreet goods and clothes
36%p.a.
15
• Over 7m people shop online every month
30%p.a. • Another 10m shop irregularly
11,2
40% p.a. • Total internet audience 60m users, which is
10 8,2 significant buying power
6,3 • 2014 growth expectations:
4,5
5 • 3-4% of total retail turnover
• $20bn market size
0
2008 2009 2010 2011 2014(E)
Share of buyers in Cities vs regions depending on Internet
E-commerce turnover as % of retail turnover, 2010
experience , 2011
UK
DE
US
FR
EU
PL
RU 1,6%
0% 2% 4% 6% 8% 10% 12%
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9. Best niches for e-commerce
Key factors:
• High volume of categories
• High online penetration
• High AOV & margins
• Doable logistics
• Repeated buying rate
• Low competition

10. Russian niches for e-commerce

11. Best niches for e-commerce - 2

12. Russian E-travel: doubles every
year

13. Local commerce - huge potential
due to mobile growth

14. Media Time Spent vs. Ad Spend

15. Investment landscape in 2010-2011
2010 $1,3 bln, 59 deals
Reported
59 deals
$250m $1050 mln
startups IPO & mature companies
2011 $2,15 bln
Reported
213 deals
$500m $1650 mln
startups IPO&mature companies
• Number of deals increases, however average deal size is smaller in 2011
• Radical growth of investors’ interest in internet startups at the seed stage
• Russian internet investment process evolves in the following manner: a good job at the start,
slowdown and delay during the later rounds and deceleration at the exit point
• Runet champions dominate the landscape, all startups combined weight only ¼ of deal volume
• No massive market entry of Global leaders via copycat acquisition

16. Investment landscape in 2010-2011
Number
of deals Deal volume by sector, 2010-2011 Sector Deal volume
E-commerce 338 655 000
Video 173 425 000
Software 70 934 000
Games 42 050 000
Consumer web 22 151 000
SaaS 19 211 000
Social 15 722 000
Mobile 11 232 000
Search 9 000 000
Advertising 7 476 000
Communication 3 834 000
Dating 3 550 000
Business services 2 590 000
Cloud computing 2 334 000
Online Recruiting 1 550 000
Online Education 1 174 000
Average deal, $
• Excluded: Yandex, Mail.ru, Vkontakte, Ozon, Odnoklassniki
• Main targets are E-commerce, Video, Software, Games, SaaS
• E-commerce includes E-retailing, Travel, Coupons, and other.

17. Major deals 2010-2011
Ozon is one of the first online retailers in Russia, established in 1998 by the Russian software house
Ru-Net, Rakuten, Alpha
Ozon (ozon.ru) 100 000 000 Sep-2011 Unattributed Reksoft. Its core assortment are books, electronics, music, and movies. Now it expanded to sale of E-commerce
Associates, Index Ventures
travel, shoes, and electoronics.
Accel Partners, Mangrove
Capital Partners, Direct Group, KupiVIP.ru is an online shopping club in Russia, operated by Privat Trade Ltd. The site organises
Kupivip (kupivip.ru) 55 000 000 Apr-2011 Round C E-commerce
Oliver Jung, ARLAN, Balderton designer brand online sales in fashion with discounts of up to 70% offline boutique prices
Capital
Kinnevik and Northzone
Avito (avito.ru) 26 000 000 Nov-2010 Round B AVITO.ru is the leading classifieds service in Russia. E-commerce
Ventures
Biglion (biglion.ru) 25 000 000 Tiger Global Management Dec-2011 Round B Biglion is one of the leading Russian daily deal websites and biggest local competitor of Groupon. E-commerce
KupiVIP.ru is an online shopping club in Russia, operated by Privat Trade Ltd. The site organises
Kupivip (kupivip.ru) 20 000 000 Accel Partners Jan-2010 Round B E-commerce
designer brand online sales in fashion with discounts of up to 70% offline boutique prices
Almaz Capital, Baring Vostok, The leading internet company in Russia, operating the most popular search engine and the most visited
Yandex (yandex.ru) 15 000 000 Sep-2010 Unattributed Search
UFG website.
One of the leading consumer electronics online retailers in Russia. Utinet is first online company to
Utinet (utinet.ru) 13 000 000 Equity Capital Markets Jul-2011 IPO E-commerce
complete listing on on MICEX.
General Catalyst Partners,
Ostrovok Accel Partners, Atomico,
12 600 000 May-2011 Round B E-commerce
(ostrovok.ru) Founders Fund, Kite Ventures,
foreign angel investors Ostrovok.ru provides Russian consumers with hotel booking services.
Parallels is a worldwide leader in virtualization and automation software that optimizes computing for
Parallels Russia Partners, Bessemer consumers, businesses, and service providers across all major hardware, operating system, and
12 000 000 Feb-2010 Round D Software
(parallels.com) Venture Partners virtualization platforms. Founded in 1999, Parallels is a fast-growing company with 800 employees in
North America, Europe, and Asia.
Team Europe, Kite Ventures,
Delivero
10 500 000 Point Nine Capital, Ru-Net, Sep-2011 Round A Delivero is a food delivering service. Delivero is part of international delivering food holding E-commerce
(delivero.ru)
Tengelmann DeliveroHero
Anywayanyday
10 000 000 Tiger Global Management Jul-2010 Round A Anywayanyday is leading Russian online travel agency. E-commerce
(anywayanyday.ru)
Lamoda Tengelmann Group, Holtzbrinck
10 000 000 Apr-2011 Round A E-commerce
(lamoda.ru) Ventures, Kinnevik Lamoda.ru is a Russia-based online shoe retailer launched by Rocket Internet.
Playnatic Playnatic Entertainment is a company that develops, publishes, online games and web projects.
10 000 000 Parta Group Mar-2010 Round A Games
(playnatic.com) Playnatic Entertainment was founded in December 2008 as subsidiary of IR "Parta Group"
Fast Lane Ventures, Direct
Sapato (sapato.ru) 9 500 000 Group, eVenture Capital Aug-2011 Round D Sapato.ru is Russia's leading online shoe retailing business catering to women, men and children. The E-commerce
Partners, Intel Capital, Kinnevik company is listed in the top-20 largest e-shops in Russia.
Intel Capital, Direct Group,
Sapato (sapato.ru) 8 500 000 eVenture Capital Partners, Jun-2011 Round C Sapato.ru is Russia's leading online shoe retailing business catering to women, men and children. The E-commerce
Kinnevik company is listed in the top-20 largest e-shops in Russia.
Fast Lane Ventures, Direct
Sapato (sapato.ru) 7 400 000 Group, eVenture Capital Nov-2010 Round B Sapato.ru is Russia's leading online shoe retailing business catering to women, men and children. The E-commerce
Partners, Kinnevik company is listed in the top-20 largest e-shops in Russia.
Nival Network 1C Company, Digital Sky
7 000 000 Mar-2010 Unattributed Nival is developer and publisher of online games. Games
(nival.com) Technologies, Sergey Orlovskiy

18. EXITS – mostly technology
acquisitions
Qik Qik was founded in 2006 to enable mobile phone users to share live video with
150 000 000 Skype Jun-2011 Acquisition their friends, family and communities on the web and on their phones.
(qik.com)
Darberry
66 000 000 Groupon Aug-2010 Acquisition
(groupon.ru) Darberry is Russian daily deals leader sold to Groupon Inc.
SPB Software is a global company developing software for mobile devices and
SPB Software smartphones running Windows Mobile, Symbian, iPhone, BlackBerry and
38 000 000 Yandex Nov-2011 Acquisition Android OS operating systems. SPB Software is known as a mobile industry
(spb.com) market leader having produced some of the most popular software apps for the
mobile environment worldwide.
GIS Technologies
5 000 000 Yandex Jun-2010 Acquisition
(maps.yandex.ru) Gis technologies is mapping data provider.
Kanobu Kanobu Network is a gaming media company based in Russia. Provides
4 000 000 Rambler Jun-2011 Acquisition
(kanobu.ru) different blogs, communities, news about games and gaming industry.
Astrostar Astrostar develops services, content and software solutions in astrology and
3 500 000 Direct Group Sep-2010 Acquisition
(astrostar.ru) related fields.
Alawar Alawar Entertainment specializes in the global development, publication and
2 500 000 Almaz Capital Feb-2010 Unattributed distribution of casual games for multiple platforms. Company is headqatered in
(alawar.ru)
Novosibirsk.
LogneX Solutions for online accounting. Service is based on Cloud computing. Provides
1 200 000 1C May-2011 Unattributed tools for internet-stores, sales company, etc.
(moysklad.ru)
Loginza Loginza develops plugin for identification, which provides unified access to
600 000 Yandex Jan-2011 Acquisition
(loginza.ru) popular web services.
WebVisor 500 000 Yandex Dec-2010 Acquisition WebVizor records user's activity on the site and enables you to watch it in
stream.
• Darberry and Qik are Russian success stories of 2010-2011
• Nearly half of exits are technology, product or team acquisitions
• No massive market entry of Global leaders via copycat acquisition
• Not including companies that facilitated exit via mail.ru IPO (Astrum, HH, etc)

19. Tatiana Tsvetkova
ttsvetkova@fastlaneventures.ru
http://fastlaneventures.ru/en/
+7 (916) 6450868
12 Dvintsev Str. bld. 1, Moscow, Russia 127018