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|1
HOW TO BUILD A SUCCESSFUL TECH COMPANY




   www.runacap.com    Runa Capital Confidential
|2
NO CLEAR LEADER AND A WEAK TEAM




   www.runacap.com    Runa Capital Confidential
|3
NO SCALABLE BUSINESS, TOO NARROW FOCUS




                                                  400,000,000 pet dogs in the world X
                                                           20% small dogs X
                                                               $68.99 =
                         $68.99 + tax                   $5.5 Billion Market!

   www.runacap.com    Runa Capital Confidential
|4
WE DON’T NEED NO FUNDING




   www.runacap.com   Runa Capital Confidential
|5
CAN’T TELL ABOUT THE COMPANY




   www.runacap.com    Runa Capital Confidential
|6
NO BUSINESS PLAN AND NO MID-TERM BUSINESS MODEL




   www.runacap.com    Runa Capital Confidential
|7
NOT PAYING ATTENTION TO COMPETITION




   www.runacap.com    Runa Capital Confidential
|8
TOO BROAD FOCUS AND DIFFERENTIATION IS NOT CLEAR




   www.runacap.com     Runa Capital Confidential
|9
CAN’T WORK WITH AN INVESTOR




   www.runacap.com    Runa Capital Confidential
|10
INTERNAL PROBLEMS




   www.runacap.com   Runa Capital Confidential
|11
WE KNOW EVERYTHING ABOUT BUSINESS PROCESSES




   www.runacap.com   Runa Capital Confidential
|12
EASY WALK IN A PARK




   www.runacap.com    Runa Capital Confidential
|13
NOT PAYING ATTENTION TO CASH FLOW




   www.runacap.com    Runa Capital Confidential
|14
RUNA CAPITAL: REAL TRACK RECORD
• $135mln VENTURE CAPITAL FUND
  seed/early and growth stage investments
• TEAM OF EXPERIENCED ENTREPRENEURS
  more than investment background: team of serial
  entrepreneurs and professional business managers
• SIGNIFICANT NUMBER OF TRANSACTIONS
  20+ with significant stake and another 10+ minority
  investments
• OVERALL MATERIAL SUCCESS
  Created total assets for over 10 billion $ starting
  with only several millions of cash investment
• EXPERIENCE SCALING
  1 business over $1bln, 7 ventures - over $100mln
  revenue, 7 over $10mln revenue, 7 over $1mln –
  all profitable




     www.runacap.com                  Runa Capital Confidential
|15
HOW WE HELP
       PRODUCT DEVELOPMENT                            BUSINESS DEVELOPMENT
• Assessment an efficient development         • Reviewing and commenting business plan
  process                                     • Involving international experts
• Recommendations for troubleshooting         • Developing specific marketing plans
• Help on software architecture               • Developing efficient and profitable
• Implementing an efficient engineering         business
  process                                     • Involving global partners
• Reviewing and commenting on product         • Building and monitoring sales channels
  development plans
                                              • Search of key management positions for
• Assistance in hiring developers               international development
• Budget control and product monitoring       • Assistance in getting the first customers

               OPERATIONS                       TAKING COMPANY TO NEXT LEVEL
• Registering companies and help with         • Development of a long-term equity
  corporate/legal issues                        story, finding next round of investors
• Support in setting you physical office in   • Establishing corporate governance
  various parts of the world                    framework
• Financial planning and budgeting,           • Establishing stock-based management
  accounting and reporting, tax advice          and employee incentive schemes
• Support in filing domestic and foreign      • Building the internal infrastructure:
  patents                                       finances, internal audit, investor relations
• Support in recruitment and executive        • Involving third-party consultants:
  search, other HR consulting                   auditors, tax and legal advisers

         www.runacap.com                      Runa Capital Confidential
CASE STUDY: JELASTIC                                                                                                                              |16

        «Runa is a very active investor. Initially, I thought we would have to ask them for useful
        contacts, thoughts on go-to-market strategy etc. In reality, the situation is completely opposite
        - Runa is a never-ending pro-active source of new opportunities and options, so our main job is
        to choose the most relevant and effective solutions. We are very pleased to work with such
        professionals.»
                                                                 - Ruslan Synytskiy, Founder and CEO of Jelastic, Ukraine
DESCRIPTION




                     Jelastic is PaaS software installed in the data centers of partner IaaS
                     providers, which arms Java developers with a set of services that
                     can be used both for the development of new applications, and for
                     the use of existing web-applications of any complexity, including                                                    Jelastic - P
                     high-load use cases
                                                                                                               BC. CDC& l - 7> . 8; 0<= ;  $ % F
                                                                                                                           '                        "
                     •   Developed new concept and business model (originally focused on cloud based IDE, =2V- 08; - : 5; : - : $ ""#a927. J A. >
                                                                                                                                   _!     $
                                                                                                               , - =6. L 72=4S ! ""#$ &'"() *$ E 7
                                                                                                                                 $    %        8:
                         which is not as attractive as PaaS)
                                                                                                               <60>72=C$ ?, - =6. L 72=71 $ 0
                                                                                                                             <7J                   I
                     •
RUNA PARTICIPATION




                         Setup company with tax advantaged structure (BVI holding company, with R&D in ! $M      $ VV75; =<2. /. ' =8, . 6I . <02
                         Ukraine and Russia, and Sales & Marketing entity in the USA)                          , - . <04>7- . <$ , - =$ 0<; . 1 0; =
                     •   Helped with key hires, including sourcing and interviewing (Example: Dmitry           - 78: - 8. <$
                         Sotnikov to lead Business operation – he was most recently at Quest Software,         !$ $ <3 8. 5. 4' , - . =I <. >=; 76
                         Judah Jones first sales employee in USA)                                              1 08Z ; 0J =- . <02=C$ K=86=; 76
                                                                                                                                      <3
                                                                                                               ! $- 08Z =- C71 . 4$V: 25@ 206
                                                                                                                  $                           =.
                     •   Helped secure Skolkovo resident status, including $1M in initial grant, helped to also20J . - $ B
                                                                                                                        ^! a$
                         secure over 150K US$ in grants from other government agencies                         ! $J 7I . , 082. 8; =' =' . ; 50I . : 8
                                                                                                                  $
                     •   Arranged meetings with leading web-hosters (HostEurope, Intergenia, Endurance,        =22. <0@ 223 A$ 0J . ; . 5$ 06
                                                                                                                           =.      20-           J
                         GoDaddy, Servint, Softlayer, etc), which resulted in the first commercial agreements
                         being signed (HostEurope & ServInt)                                                  ! "# "$%"& ""#$%
                                                                                                                          '!    &'"() *$+$, - . /-
                     •   Helped recruit board advisor (Alex Tkachman)                                         B 87- <=8?, - . <04>7- . <$ , - 7
                                                                                                               ""#$                        =$
                                                                                                              8. I >02=C$ <. /. $ - =6. L 72=C9
                                                                                                                          2.     ,                 $
                     •   Found a several good investors for Series A @ 10x valuation of seed round            86. L 2. 8; =9<56DK0C$ PN?'Q"R$
                                                                                                                            $        NO           ,
                     www.runacap.com                              Runa Capital Confidential
                                                                                                                            $
                                                                                                                            T$ . - $ <=8. <$ L 7$ >=; U$
                                                                                                                              20J 87-          :    <A.    $
                                                                                                                            !, - 7>. 8; 0<672=7$ 8; =2/0$ - =
                                                                                                                             $$                  A.     ,
|17
WATCH FOR FUTURE ANNOUNCEMENTS!

         Serguei
         Beloussov


         Sasha
         Galitsky


         Boris
         Lozhkin


         Victoria
         Tigipko


         Vasily
         Khmelnitsky

   www.runacap.com     Runa Capital Confidential

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IDCEE 2012: How to build a successful tech company. Case study - Serguei Beloussov (Founder @ Runa Capital)

  • 1. |1 HOW TO BUILD A SUCCESSFUL TECH COMPANY www.runacap.com Runa Capital Confidential
  • 2. |2 NO CLEAR LEADER AND A WEAK TEAM www.runacap.com Runa Capital Confidential
  • 3. |3 NO SCALABLE BUSINESS, TOO NARROW FOCUS 400,000,000 pet dogs in the world X 20% small dogs X $68.99 = $68.99 + tax $5.5 Billion Market! www.runacap.com Runa Capital Confidential
  • 4. |4 WE DON’T NEED NO FUNDING www.runacap.com Runa Capital Confidential
  • 5. |5 CAN’T TELL ABOUT THE COMPANY www.runacap.com Runa Capital Confidential
  • 6. |6 NO BUSINESS PLAN AND NO MID-TERM BUSINESS MODEL www.runacap.com Runa Capital Confidential
  • 7. |7 NOT PAYING ATTENTION TO COMPETITION www.runacap.com Runa Capital Confidential
  • 8. |8 TOO BROAD FOCUS AND DIFFERENTIATION IS NOT CLEAR www.runacap.com Runa Capital Confidential
  • 9. |9 CAN’T WORK WITH AN INVESTOR www.runacap.com Runa Capital Confidential
  • 10. |10 INTERNAL PROBLEMS www.runacap.com Runa Capital Confidential
  • 11. |11 WE KNOW EVERYTHING ABOUT BUSINESS PROCESSES www.runacap.com Runa Capital Confidential
  • 12. |12 EASY WALK IN A PARK www.runacap.com Runa Capital Confidential
  • 13. |13 NOT PAYING ATTENTION TO CASH FLOW www.runacap.com Runa Capital Confidential
  • 14. |14 RUNA CAPITAL: REAL TRACK RECORD • $135mln VENTURE CAPITAL FUND seed/early and growth stage investments • TEAM OF EXPERIENCED ENTREPRENEURS more than investment background: team of serial entrepreneurs and professional business managers • SIGNIFICANT NUMBER OF TRANSACTIONS 20+ with significant stake and another 10+ minority investments • OVERALL MATERIAL SUCCESS Created total assets for over 10 billion $ starting with only several millions of cash investment • EXPERIENCE SCALING 1 business over $1bln, 7 ventures - over $100mln revenue, 7 over $10mln revenue, 7 over $1mln – all profitable www.runacap.com Runa Capital Confidential
  • 15. |15 HOW WE HELP PRODUCT DEVELOPMENT BUSINESS DEVELOPMENT • Assessment an efficient development • Reviewing and commenting business plan process • Involving international experts • Recommendations for troubleshooting • Developing specific marketing plans • Help on software architecture • Developing efficient and profitable • Implementing an efficient engineering business process • Involving global partners • Reviewing and commenting on product • Building and monitoring sales channels development plans • Search of key management positions for • Assistance in hiring developers international development • Budget control and product monitoring • Assistance in getting the first customers OPERATIONS TAKING COMPANY TO NEXT LEVEL • Registering companies and help with • Development of a long-term equity corporate/legal issues story, finding next round of investors • Support in setting you physical office in • Establishing corporate governance various parts of the world framework • Financial planning and budgeting, • Establishing stock-based management accounting and reporting, tax advice and employee incentive schemes • Support in filing domestic and foreign • Building the internal infrastructure: patents finances, internal audit, investor relations • Support in recruitment and executive • Involving third-party consultants: search, other HR consulting auditors, tax and legal advisers www.runacap.com Runa Capital Confidential
  • 16. CASE STUDY: JELASTIC |16 «Runa is a very active investor. Initially, I thought we would have to ask them for useful contacts, thoughts on go-to-market strategy etc. In reality, the situation is completely opposite - Runa is a never-ending pro-active source of new opportunities and options, so our main job is to choose the most relevant and effective solutions. We are very pleased to work with such professionals.» - Ruslan Synytskiy, Founder and CEO of Jelastic, Ukraine DESCRIPTION Jelastic is PaaS software installed in the data centers of partner IaaS providers, which arms Java developers with a set of services that can be used both for the development of new applications, and for the use of existing web-applications of any complexity, including Jelastic - P high-load use cases BC. CDC& l - 7> . 8; 0<= ; $ % F ' " • Developed new concept and business model (originally focused on cloud based IDE, =2V- 08; - : 5; : - : $ ""#a927. J A. > _! $ , - =6. L 72=4S ! ""#$ &'"() *$ E 7 $ % 8: which is not as attractive as PaaS) <60>72=C$ ?, - =6. L 72=71 $ 0 <7J I • RUNA PARTICIPATION Setup company with tax advantaged structure (BVI holding company, with R&D in ! $M $ VV75; =<2. /. ' =8, . 6I . <02 Ukraine and Russia, and Sales & Marketing entity in the USA) , - . <04>7- . <$ , - =$ 0<; . 1 0; = • Helped with key hires, including sourcing and interviewing (Example: Dmitry - 78: - 8. <$ Sotnikov to lead Business operation – he was most recently at Quest Software, !$ $ <3 8. 5. 4' , - . =I <. >=; 76 Judah Jones first sales employee in USA) 1 08Z ; 0J =- . <02=C$ K=86=; 76 <3 ! $- 08Z =- C71 . 4$V: 25@ 206 $ =. • Helped secure Skolkovo resident status, including $1M in initial grant, helped to also20J . - $ B ^! a$ secure over 150K US$ in grants from other government agencies ! $J 7I . , 082. 8; =' =' . ; 50I . : 8 $ • Arranged meetings with leading web-hosters (HostEurope, Intergenia, Endurance, =22. <0@ 223 A$ 0J . ; . 5$ 06 =. 20- J GoDaddy, Servint, Softlayer, etc), which resulted in the first commercial agreements being signed (HostEurope & ServInt) ! "# "$%"& ""#$% '! &'"() *$+$, - . /- • Helped recruit board advisor (Alex Tkachman) B 87- <=8?, - . <04>7- . <$ , - 7 ""#$ =$ 8. I >02=C$ <. /. $ - =6. L 72=C9 2. , $ • Found a several good investors for Series A @ 10x valuation of seed round 86. L 2. 8; =9<56DK0C$ PN?'Q"R$ $ NO , www.runacap.com Runa Capital Confidential $ T$ . - $ <=8. <$ L 7$ >=; U$ 20J 87- : <A. $ !, - 7>. 8; 0<672=7$ 8; =2/0$ - = $$ A. ,
  • 17. |17 WATCH FOR FUTURE ANNOUNCEMENTS! Serguei Beloussov Sasha Galitsky Boris Lozhkin Victoria Tigipko Vasily Khmelnitsky www.runacap.com Runa Capital Confidential