4 April 2015

Center of Mathematical Finance.

Russian VC overview

Team 4

Major players, market size

Team 4 |2

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:///

Accelerators Funds

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

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.

Ave

rag

e s

um

of

inve

stm

en

ts, m

ln r

ub

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.

Team 4 |3

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

Team 4 |4

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

Team 4 |5

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

Team 4 |6

TOP-deals during 2008 -2015

Team 4 | 7

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.

Key state initiatives to promote VC in Russia

Team 4 | 8

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

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

Team 4 | #

Big Data market forecast

Public cloud services by segment

Registered vehicles with IoT application by region

Fintech market forecast

bln

USD

CAGR 38%

bln

USD

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%

bln

USD

66,92

103,66

0

20

40

60

80

100

120

2014 2019

Financial technology market size

CAGR 10%

bln

USD

405

Source: Business Insider, McKinsey, EY Team 4 | 9

Our target companies are on the high-growing sectors

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

30 18

10

9

9 5

Invested capital by industry, US$m

IoT fintech

E-commerce Сonsumer web

Soft HR

Saas

Team 4 | #

Team 4 | 10

№ 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

Team 4 | #

Team 4 |11