tsvetkova fast lane ventures
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TRANSCRIPT
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The landscape of Russian Internet: most promising niches
2
Fast Lane Ventures capitalizes on the significant opportunities within the Russian internet
sector – one of the most growing sector of economy
Who we are
Achievements
• 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
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
• 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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Who we are
3
Preliminary analysis
Step 1
Step 2
Step 3
345
Management,
shareholders and
partners
Internal
analysis
Submitted
projectsAnalysis of investors
portfolios
45 60130Heverest
VitaPortal OdinOtvet
TravelRent
RentHome
Juvalia Kommerstate Lokata
DomGeo
We issued ‘GO’ on 12
companies…
587
146
22
50
In 2011 we launched 12 companies, after considering 580 business models, and
discussing 146 projects in detail on weekly IC
GO
There four major sources of incoming ideas:
Our Investment Criteria:
• ‘Go’ idea has to be based on proven business model
• Project has clear and fast road to market
• Fast Lane Ventures can effectively contribute in day-to-day operations
• 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
• There clear exit opportunities
PinMe Eventmag HomeFair
How we get new ideas
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)
Market overview
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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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Ecommerce
Advertising
Media
Some obvious trends 2011
• Targeting and retargeting (not only Google, Criteo, Sociomantica)
• Step from last-click analytics to multichannel marketing
• Mobile ad
• Regional Development
• Categories: Home goods, furniture,
• Infrastructure and payment providing for ecommerce
• Collaborative news creation
• New format in news (animation, infografics, maps, panoramas)
• Content on demand
• Multichannel news broadcasting
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Russian E-commerce: Double digit growth
E-commerce turnover as % of retail turnover, 2010
1,6%
0% 2% 4% 6% 8% 10% 12%
RU
PL
EU
FR
US
DE
UK
E-commerce turnover, Russia, $ bn
40% p.a.
30%p.a.
4,56,3
8,2
11,2
20
0
5
10
15
20
25
2008 2009 2010 2011 2014(E)
36%p.a.
Spending on the internet is growing fast, but it’s still relatively low compared to other nations
Russia e-commerce market:
• 5-6k internet shops• Most developed are discreet goods and clothes
• Over 7m people shop online every month• Another 10m shop irregularly • Total internet audience 60m users, which is
significant buying power• 2014 growth expectations:
• 3-4% of total retail turnover• $20bn market size
Share of buyers in Cities vs regions depending on Internet experience , 2011
• High volume of categories
• High online penetration
• High AOV & margins
• Doable logistics
• Repeated buying rate
• Low competition
Best niches for e-commerce
Key factors:
Russian niches for e-commerce
Best niches for e-commerce - 2
Russian E-travel: doubles every year
Local commerce - huge potential due to mobile growth
Media Time Spent vs. Ad Spend
Investment landscape in 2010-2011
$1,3 bln, 59 deals
$2,15 bln
2010Reported
59 deals$250m
startups
$1050 mlnIPO & mature companies
$500mstartups
$1650 mlnIPO&mature companies
2011Reported
213 deals
• 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
Investment landscape in 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
Deal volume by sector, 2010-2011Number
of deals
• 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.
Average deal, $
Major deals 2010-2011
Ozon (ozon.ru) 100 000 000Ru-Net, Rakuten, Alpha Associates, Index Ventures
Sep-2011 UnattributedOzon is one of the first online retailers in Russia, established in 1998 by the Russian software house Reksoft. Its core assortment are books, electronics, music, and movies. Now it expanded to sale of travel, shoes, and electoronics.
E-commerce
Kupivip (kupivip.ru) 55 000 000
Accel Partners, Mangrove Capital Partners, Direct Group, Oliver Jung, ARLAN, Balderton Capital
Apr-2011 Round CKupiVIP.ru is an online shopping club in Russia, operated by Privat Trade Ltd. The site organises designer brand online sales in fashion with discounts of up to 70% offline boutique prices
E-commerce
Avito (avito.ru) 26 000 000Kinnevik and Northzone Ventures
Nov-2010 Round B AVITO.ru is the leading classifieds service in Russia. E-commerce
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 (kupivip.ru) 20 000 000 Accel Partners Jan-2010 Round BKupiVIP.ru is an online shopping club in Russia, operated by Privat Trade Ltd. The site organises designer brand online sales in fashion with discounts of up to 70% offline boutique prices
E-commerce
Yandex (yandex.ru) 15 000 000Almaz Capital, Baring Vostok, UFG
Sep-2010 UnattributedThe leading internet company in Russia, operating the most popular search engine and the most visited website.
Search
Utinet (utinet.ru) 13 000 000 Equity Capital Markets Jul-2011 IPOOne of the leading consumer electronics online retailers in Russia. Utinet is first online company to complete listing on on MICEX.
E-commerce
Ostrovok (ostrovok.ru)
12 600 000
General Catalyst Partners, Accel Partners, Atomico, Founders Fund, Kite Ventures, foreign angel investors
May-2011 Round B
Ostrovok.ru provides Russian consumers with hotel booking services.
E-commerce
Parallels (parallels.com)
12 000 000Russia Partners, Bessemer Venture Partners
Feb-2010 Round D
Parallels is a worldwide leader in virtualization and automation software that optimizes computing for consumers, businesses, and service providers across all major hardware, operating system, and virtualization platforms. Founded in 1999, Parallels is a fast-growing company with 800 employees in North America, Europe, and Asia.
Software
Delivero (delivero.ru)
10 500 000Team Europe, Kite Ventures, Point Nine Capital, Ru-Net, Tengelmann
Sep-2011 Round A Delivero is a food delivering service. Delivero is part of international delivering food holding DeliveroHero
E-commerce
Anywayanyday (anywayanyday.ru)
10 000 000 Tiger Global Management Jul-2010 Round A Anywayanyday is leading Russian online travel agency. E-commerce
Lamoda (lamoda.ru)
10 000 000Tengelmann Group, Holtzbrinck Ventures, Kinnevik
Apr-2011 Round ALamoda.ru is a Russia-based online shoe retailer launched by Rocket Internet.
E-commerce
Playnatic (playnatic.com)
10 000 000 Parta Group Mar-2010 Round APlaynatic Entertainment is a company that develops, publishes, online games and web projects. Playnatic Entertainment was founded in December 2008 as subsidiary of IR "Parta Group"
Games
Sapato (sapato.ru) 9 500 000Fast Lane Ventures, Direct Group, eVenture Capital Partners, Intel Capital, Kinnevik
Aug-2011 Round D Sapato.ru is Russia's leading online shoe retailing business catering to women, men and children. The company is listed in the top-20 largest e-shops in Russia.
E-commerce
Sapato (sapato.ru) 8 500 000Intel Capital, Direct Group, eVenture Capital Partners, Kinnevik
Jun-2011 Round C Sapato.ru is Russia's leading online shoe retailing business catering to women, men and children. The company is listed in the top-20 largest e-shops in Russia.
E-commerce
Sapato (sapato.ru) 7 400 000Fast Lane Ventures, Direct Group, eVenture Capital Partners, Kinnevik
Nov-2010 Round B Sapato.ru is Russia's leading online shoe retailing business catering to women, men and children. The company is listed in the top-20 largest e-shops in Russia.
E-commerce
Nival Network (nival.com)
7 000 0001C Company, Digital Sky Technologies, Sergey Orlovskiy
Mar-2010 Unattributed Nival is developer and publisher of online games. Games
Qik
(qik.com)150 000 000 Skype Jun-2011 Acquisition
Qik was founded in 2006 to enable mobile phone users to share live video with their friends, family and communities on the web and on their phones.
Darberry
(groupon.ru)66 000 000 Groupon Aug-2010 Acquisition
Darberry is Russian daily deals leader sold to Groupon Inc.
SPB Software
(spb.com)38 000 000 Yandex Nov-2011 Acquisition
SPB Software is a global company developing software for mobile devices and smartphones running Windows Mobile, Symbian, iPhone, BlackBerry and Android OS operating systems. SPB Software is known as a mobile industry market leader having produced some of the most popular software apps for the mobile environment worldwide.
GIS Technologies
(maps.yandex.ru)5 000 000 Yandex Jun-2010 Acquisition
Gis technologies is mapping data provider.
Kanobu
(kanobu.ru)4 000 000 Rambler Jun-2011 Acquisition Kanobu Network is a gaming media company based in Russia. Provides
different blogs, communities, news about games and gaming industry.
Astrostar
(astrostar.ru)3 500 000 Direct Group Sep-2010 Acquisition Astrostar develops services, content and software solutions in astrology and
related fields.
Alawar
(alawar.ru)2 500 000 Almaz Capital Feb-2010 Unattributed
Alawar Entertainment specializes in the global development, publication and distribution of casual games for multiple platforms. Company is headqatered in Novosibirsk.
LogneX
(moysklad.ru)1 200 000 1C May-2011 Unattributed
Solutions for online accounting. Service is based on Cloud computing. Provides tools for internet-stores, sales company, etc.
Loginza
(loginza.ru)600 000 Yandex Jan-2011 Acquisition Loginza develops plugin for identification, which provides unified access to
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.
EXITS – mostly technology acquisitions
• 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)
Tatiana Tsvetkova
+7 (916) 6450868
12 Dvintsev Str. bld. 1, Moscow, Russia 127018
http://fastlaneventures.ru/en/