infoShare 2013: Alexander Shulgin - Starting, running and growing new IT companies in Russia [EN].

Poland – RussiaCreating the Harmony

Starting, running and growing new IT companies in Russia

Russian IT market

57,8M Internet users monthly57% Advertising market growth

388,5 M Euro display ads639,1 M Euro search ads30% E-commerce market growth

186 M mobile phones – for 140 M people – 1,5 SIM card for 1 person

VK – 29 143 000Odnoklassniki – 25 265 000My World (Mail.ru) – 22 831 000Facebook – 15 404 000Livejournal – 16 139 000

Mobile contentMore than $3 billion overall mobile content market by the end of 2013

78 million internet users by 2015

$23 billion to $30 billionE-commerce market by 2015

Internet & eCommerce

Forecast

Russia employs over 1 million IT specialists. This is 1,34 percent of the country’s labor force

Good education + High salaries

City EducationSalaries EUR/monthsPHP lead programmer / C++ lead programmer

Moscow 40 un-s providing IT edu 1750 – 15000 / 1750 –10000

Saint-Petersburg 10 un-s providing IT edu 1250- 9000/ 1400-7000

Novosibirsk 3 un-s providing IT edu 940-7000 / 800 –5000

Nizhniy Novgorod 3 un-s providing IT edu 1075 –4000 / 850 –3000

A paradise for IT specialists

Low Tax Rates from 6 to 13%

Russian hackers are world-knownfor their expertise.

New Russian business: groups of hackers are paid to test the security of IT infrastructures

And for Anti-Hackers — Kaspersky lab

A paradise for Hackers

300 million end-users250 thousand corporate clients$612 million – global turnover

Yury Milner, co-owner Mail.ru and DST Global

Arkady Volozh and Ilya Segalovich, founders of Yandex.ru

Evgeny Kaspersky, anti-virus software development company Kasperky

Vyacheslav Mirilashvili, co-owner Vkontakte

First billionaires from IT

3 ways you may benefit from Russia

• Specialize in algorithmic• Truckle big data issues• Usе new solutions from Russian • Health and e-Health

2. Test laboratory:

3. Observatory:

Russia has all resources for implementation of your ideas.

1. Pool of experts:

• Detect the glitches in your infrastructure security solutions with specialized hackers

• Test efficiency new services – quick adoption

• Alternative solutions to well-known issues• Intensive use of social networks• Strong growth market• Fast building ecosystem

Market Research – find your niche and opportunities

ways to go further

Define the Idea, what’s next?

Local PartnerBy yourself Government

• Other rules• Policy may change often• Bureaucracy & corruption

OR

Top IT Hub cities Number of head offices & remote development centers of companies

MoscowMoscow Region — 80

Saint-Petersburg — 46

Novosibirsk — 14

Yekaterinburg — 8

Kazan — 5

Rostov-on-Don — 4

Veliky Novgorod — 3

Nizhniy Novgorod — 2

Omsk — 3

•Skolkovo Innovation Center Special Economic ZoneBudget allocation — $2.9 billionSupports 700 innovation companies from >30 Russian regions

•Ingria Prominent technopark and incubator in St. Petersburg

•Kazan’s IT ParkOne of the largest technoparks in Europe•MSU Business IncubatorIncubator based on the well-known Moscow State University

Technoparks, incubators and accelerators

English-language information sources:• East-West Digital News,a leading resource on Russian digital industries and related venture activity

• Rusbase, a startup and investor database

• Marchmont News, a biligual resource dedicated to innovation accross Russia’s regions

> 25% faster growth of Moscow popularity in Innovation Cities Europe Index in 2013-2018 than in 2008-2012

Increase in creation of innovation workplaces

> 5%/year in 2012-2018

> 2 times increase in investments in the implementation of innovation investment projects in Moscow

Moscow Government Plans

• BIT, the leading innovation contest in Russia and neighboring countries

• TechCrunch Moscow, a tech and venture event held in December each year• Web Ready, an international Internet and mobile startup contest held in St. Petersburg in November of each year

International tech contests:

Internationally oriented accelerators:

• Farminers• Plug and Play Tech Center Moscow

•Texdrive•TechTour

Do local – think global

Let’s look at Russia as a Poland local market

Do local – think global

DST: Impressive portfolio including many of the hottest firms, starting the first bridges between Russian and Western companies

Serious challenges

Copyright & Copypaste

It’s time to create!

Without creativity you can’t achieve the harmony

BUT

Multiplying ZERO

If you have a smart idea, you can find a smart money to multiply it.

0 x $1.000.000 = still 0

Sustainable business formula

Do what you do well and what you can be proud of

Do business according moral values

DisplAir: first interactive airborne display with multi-touch support

Creativity disrupts the market and minds

QIWI

Provider of payment services across physical, online and mobile channels

11 million virtual wallets169 thousand kiosks39 billion cash & electronic payment monthly

Held IPO on NASDAQ on May 3, 2013

YotaPhone

Yota (4G internet) is the first Russian high-speed wireless network based on Mobile WiMAX.

IP protection in Russia as well as in mostEuropean jurisdictions does not match the sophistication of copyright laws in USA

Pirated software accounted for 65% of the volume of all software units installed on PCs in Russia

Copyright

2nd Worldwide rank in size of illegal media sharing ($300 million in music piracy)

Copyright should be ABOLISHED!

Because

Copyright laws constraint creativity

Progress is too fast to befollowed by Copyright laws

So, what to do?

Create open codes

Give users access to your product

Don’t ask them to pay for the air they breathe

Work coopetitive, not competitive

1 : 1= 2!

If I give an apple to you, you will have an apple, and I won’t

If I give an idea to you, each of us will have an idea!

More smart

More ethics

More up to date

New World Copyright Law – Moral law

Manual

Exchange the ideas

Learn from each other

Share experience

Cooperate Do Market Study

Define your niche and idea

Use government supported programs

Participate in contests

Choose the location for growth out of many

Russian IT Hubs

Be creative!

Be ethic!

Thank you!