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Media businesses pick up the growth rate

0 October 2012

DISCLAIMER

The provided material is based on public data as well as private sources. The estimated total was made by Startup Afisha analysts.

SUMMARY

October 2012 brought a sharp increase in the number of deals in content-oriented businesses - Russian and foreign investors almost daily announced that they supported projects related to storage of media content, developing of specialized social networks and portals, gathering and processing of information for presentation to different audiences ‑ from kids and their parents to specific world-class investors; as well as to adjacent target groups. However, major part of the investors' funds was reserved for projects in the sphere of e-commerce as the best-defined in terms of strategy: and in that regard the level of development of the market can be described as extensive and far not advanced (more than a half of the raised money fell on already established projects, which are preparing for IPO or went to the finish line with the sale to the core investor). At the same time, Russian investors actively acquire Western projects of the third and fourth levels, keeping in mind the possibility of synergy them with their businesses and creating local success stories.

DEAL OF THE MONTH

The purchase of additional shares of the online store KupiVIP.ru by Polish investment-company MCI Management (it manages venture funds MCI.TechVentures, Internet Ventures, MCI.EuroVentures, Helix Ventures Partners) became the largest deal on the Russian venture capital investments market in October 2012. Total amount emitted was about $ 15.5 million, and the total amount of external inputs into one of the leaders in the regional market of e-commerce companies exceeded $ 140 million.
Attracted investment company intends to spend on the development of its key projects - shopping-clubs KupiVIP.ru and KupiLUXE.ru, online store ShopTime.ru, as well as on the production of goods under its own brand names. Other details of the deal are not disclosed, as well as the proportion of sold shares, but it is clear that the holding company can also use the funds for the takeover of other startups on the market on the eve of its IPO on the NYSE, expected by 2014. In addition, the founder of KupiVIP.ru Oscar Hartmann is rather inspired be possible expansion of his brainchild project by lobbying the reduction of customs duty to zero level for retailers.


FUND OF THE MONTH


Business-angel Igor Matsanyuk, known as one of the most active venture capital investors in Russia, has received support from his former Mail.ru-colleagues Vinchel Michael and Gregory Finger to launch a venture capital fund IMI.VC. Vinchel invested $ 75 million in the project, and the Finger joined the board of directors. Money, received by IMI.VC, will be spent on development of the projects in which Igor Matsanyuk has invested before - the closest candidates are GameInsight, developer of mobile games, and its spin-off – comic studio NARR8, as well as some of the teams from the Academy of startups Farminers (their composition and quantity are constantly changing, and now there are between 13 and 20 projects).
Among other things, Matsanyuk does not exclude the possibility of co-investment in these and other projects with the partners of Vinchel and Finger from the other two venture funds - iTech Capital and Buran VC.

According to "Start-up Afisha" for this purpose the fund of IMI.VC can be doubled - up to $ 150 million, where most of the money will be from Matsanyuk's patners.


STARTUP OF THE MONTH


The online travel service OneTwoTrip was declared the start-up of the month in October 2012. The service received $ 16 million from the venture capital company Atomico, which is known for the fact that among its founders there is  Skype co-founder Niklas Zennstrom.

OneTwoTrip, founded by Peter Kutis, who came from the similar startup Anywayday, in May 2011, approached the second round of investment in a year and a half left  - the first major fund money it raised at the beginning of September 2012 in the amount of $ 9,000,000 from the fund Phenomen Ventures.

Monthly revenue of OneTwoTrip, according to its own estimates, in June 2012, was $ 30 million, and as of end of the year 2012, this figure could reach $ 400 million in total. The service has now 20,000 unique visitors a day, every day more than 3.5 thousand tickets are ordered. With the site's commission of 6-7%, which is the main source of the revenue for the project, however company does not disclose its profit margin. Western experts believe that the Russian tourist segment of the Internet market is growing fast and will keep this dynamics for a long time - so, the volume of online ticket sales this year will reach $ 4.3 billion, respectively, OneTwoTrip can taker over up to 10% of the market.


PERSON OF THE MONTH


Citizen of Singapore Sergei Belousov, the founder of the international venture fund Runa Capital and the partner fund Almaz Capital, whose personal fortune is estimated at more than $ 500 million, became the man of October 2012 on Russian venture capital market. He gained the award in the field of management "Aristos-2012" in the nomination "Best venture capitalist." The crucial factor in elaboration of a new category in one of the most prestigious awards of regional business became a significant increase in investment activity in the segment of venture financing.

New nomination was established on RBK initiative to create a mechanism of public recognition of success and to further promote the development of venture capital industry. This nomination was supported by the founder of the award "ARISTOS" – Association of Managers.


MONTHLY VOLUME OF ANNOUNCED DEALS. DYNAMICS


In October 2012, on the Russian venture capital market deals were conducted for a total of about 125 million, a third less than in September 2012 (when USD 190 million was reached). Public deals, with disclosed data, were considered, as well as private deals with undisclosed data (estimate made by analysts of «Startup Afisha»).

The maximum investment amount per deal totaled $ 50 million (sale of the 50% share of Softmarket.ru). The minimum investment amount was $ 120,000 (investments of Moscow Seed Fund into service LikeHack).

Number od deals in breakdown by size in '000 USD

MONTHLY NUMBER OF DEALS. DYNAMICS

In October 2012, the Russian venture capital market had 24 deals, that is 8 deals more (33% increase) than in September 2012.

Number of deals growth dynamics

MONTHLY NUMBER OF FUNDS' NEW COMMITMENTS. DYNAMICS

In October 2012, venture capital funds, which work on the Russian market, announced their readiness to invest a total amount of about $ 100 million in Russian projects during next 6 months.

NUMBER OF ACTIVE FUNDS ON RUSSIAN MARKET

In October 2012, there were 109 venture capital funds on the Russian market (Managing Company, incubator, accelerator, investment company), which complete venture investment; that is 4 funds more (growth by 3,6%) than in October 2012.

STARTUPS BREAKDOWN BY TECHNOLOGY

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