Center  of  Mathematical  Finance

4  April  2015

Venture  Capital Industry  Weekly  Report.  Team  6

Authors:  Uvarov  Leonid  (USA  Overview)  Batojargalov  Bimba  (Russia  Overview)

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RussiaWeekly  Overview

After  the  adoption  of  amendments  it  will  be  much  more  profitable to  investors  and  start-­‐ups  to  remain  in  the  Russian  legal   field.  To  conduct  transactions  in  Russia  will  cost  315  000  rubles,  through  a  foreign  holding  company  -­‐ more  expensive

The  State  Duma  considered  amendments  to  facilitate  the  conduct  of  venture  deals

“Startup  Sabantuy 2015”  will  be  held  in  10  russian cites

Selection of projects will be conducted by representatives of leading investmentfunds -­‐ KamaFlow, Runa Capital, LETA Capital, Rostelecom, Navigator Found.

Promsvyazbank with  the  administration  of  Angarsk  conducted  intramural  selection  of  business  ideas  of  young  entrepreneurs

The total amount of requested investments is amounted to about 30 million rubles.In total 4 projects have passed to the next stage of the selection. An agreement wassigned on cooperation between the bank and the Administration of Angarsk to theframeworkof the AngarskVenture Fund

2-­‐billion-­‐dollar  design  startup  Houzz came  to  Russia

Houzz -­‐ one  of  the  most  "hot"  start-­‐ups  in  Silicon  Valley,  which  attracted  $  213  million  -­‐ did  not  afraid  of  sanctions  and  opened  an  office  in  Russia

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The  most  significant deals  in  Russia

Date Investor Target  company Sum Industry Goal

11  March  2015Individual  investorsDoctorNet.pro Wedvice 25  mln  RUB Holidays  

organizationBusiness  

devlopment

March  2015 SMRK  VC  Fund Settle $1,5  mln CaffebookingExpand  the  

business  to  USA  market

31  March  2015 Telecom  Capital Mojio $8  mln Network  devices Business  devlopment

March  2015 Mocsow  Seef  Fund YAKlass 12  mln  RUB Online  education

Expand  the  business  to  international  

market

March  2015 The  Hive  CapitalSteltec  Capital Augmented  Pixels &1  mln High  technology Product  

development

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ü Solomoto raised  about  $8  – 10  millions  from  Blumberg  Capital  Venture  Fund  by  selling  25%  of  shares  in  March  2015

ü Estimated  value  is  about  $  30  – 40  mln

ü Estimated  revenue  is  about  5  million  rubles  per  month

Business  Model

SOLOMOTO  – Project  of  the  Week.  Russia

• Solomoto is  a  marketing  platform  (SaaS)  that  gives  small  and  medium  businesses  the  power  to  unlock  their  digital  marketing  potential

• The  platform  is  incredibly  user  friendly  and  does  not  require  any  tech  knowledge

Investments

Markets

10%

90%

CIS

Russia

Team

30  thousand  of  users  overall

Founder,  CEO

Pasha  Romanovsky

Founded  in  April  2014

Sources:  company  web-­‐site,  rbc.ru/technology_and_media/

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Industry  News  USA

v IBM  commits  $3B  for  new  Internet  of  Things  business unit

v Partech  Ventures  announced  a  new  $65M  seed  fund

v Twitter  launched    its  real-­‐time  search  and  filtering  tool  

v Etsy sets  IPO  price  range  at  $14  to  $16

v GoDaddy raises  $460M  After  U.S.  IPO

Sources:  techcrunch.com,  bloomberg.com

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The  Most  Significant  Deals  USA

$15MExpanding  its  presence  both  within  the  areas it  already  operates and  

beyond

$45MExpanding  to  new  

geographies  and  new  categories

$9MSoftware  adapting;Launching  additional  

products

$52M Faster  scaling

$7.5M Developing  new  features

Sources:  venturebeat.com,  techcrunch.com

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TANIUM  -­ Project  of  the  Week  USA

Overview Clients Team

David  Hindawi  Co-­‐founder  

CEO

Investments

$812.5K  05/2010

$90M  06/2014

$52M  03/2015

Tanium gives  the  world’s  biggest  organizations  the  unique  power  to  control,  manage  and  secure  hundreds  of  thousands  of  endpoints  within  seconds

• Quadrupled  growth  in  total  billings  and  number  of  employees  year-­‐over-­‐year

• Added  a  number  of  Fortune  1000  companies  to  its  customer  roster,  which  now  includes  five  of  the  top  10  US  banks  and  four  of  the  top  10  US  retailers.  Fifty  of  the  Fortune  100  now  use  Tanium in  a  production  environment

• Increased  the  number  of  transactions  over  $1  million  by  800%,  and  the  number  of  transactions  over  $5  million  by  300%  year-­‐over-­‐year

• Ended  2014  cash  flow  positive,  debt  free,  with  total  cash  in  excess  of  $100  million

Orion  HindawiCo-­‐founder  

CTO

Sources:  crunchbase.com,  tanium.com,  massinvestor.com