idcee 2012: how to build a successful tech company. case study - serguei beloussov (founder @ runa...

www.runacap.com Runa Capital Confidential

|1HOW TO BUILD A SUCCESSFUL TECH COMPANY


|2NO CLEAR LEADER AND A WEAK TEAM


|3NO SCALABLE BUSINESS, TOO NARROW FOCUS

400,000,000 pet dogs in the world X20% small dogs X

$68.99 =

$5.5 Billion Market!$68.99 + tax


|4WE DON’T NEED NO FUNDING


|5CAN’T TELL ABOUT THE COMPANY


|6NO BUSINESS PLAN AND NO MID-TERM BUSINESS MODEL


|7NOT PAYING ATTENTION TO COMPETITION


|8TOO BROAD FOCUS AND DIFFERENTIATION IS NOT CLEAR


|9CAN’T WORK WITH AN INVESTOR


|10INTERNAL PROBLEMS


|11WE KNOW EVERYTHING ABOUT BUSINESS PROCESSES


|12EASY WALK IN A PARK


|13NOT PAYING ATTENTION TO CASH FLOW

Pieter Bruegel, The Triumph of Death


|14

• $135mln VENTURE CAPITAL FUNDseed/early and growth stage investments

• TEAM OF EXPERIENCED ENTREPRENEURSmore than investment background: team of serial entrepreneurs and professional business managers

• SIGNIFICANT NUMBER OF TRANSACTIONS20+ with significant stake and another 10+ minority investments

• OVERALL MATERIAL SUCCESSCreated total assets for over 10 billion $ starting with only several millions of cash investment

• EXPERIENCE SCALING1 business over $1bln, 7 ventures - over $100mln revenue, 7 over $10mln revenue, 7 over $1mln –all profitable

RUNA CAPITAL: REAL TRACK RECORD


|15HOW WE HELP

PRODUCT DEVELOPMENT

•Assessment an efficient development process

•Recommendations for troubleshooting

•Help on software architecture

• Implementing an efficient engineering process

•Reviewing and commenting on product development plans

•Assistance in hiring developers

•Budget control and product monitoring

BUSINESS DEVELOPMENT

•Reviewing and commenting business plan

• Involving international experts

•Developing specific marketing plans

•Developing efficient and profitable business

• Involving global partners

•Building and monitoring sales channels

• Search of key management positions for international development

•Assistance in getting the first customers

OPERATIONS

•Registering companies and help with corporate/legal issues

• Support in setting you physical office in various parts of the world

• Financial planning and budgeting, accounting and reporting, tax advice

• Support in filing domestic and foreign patents

• Support in recruitment and executive search, other HR consulting

TAKING COMPANY TO NEXT LEVEL

•Development of a long-term equity story, finding next round of investors

•Establishing corporate governance framework

•Establishing stock-based management and employee incentive schemes

•Building the internal infrastructure: finances, internal audit, investor relations

• Involving third-party consultants: auditors, tax and legal advisers


|16

Jelastic is PaaS software installed in the data centers of partner IaaSproviders, 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 high-load use cases

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Jelastic - PaaS Cloud Platform for Java and PHP$

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• Developed new concept and business model (originally focused on cloud based IDE, which is not as attractive as PaaS)

• Setup company with tax advantaged structure (BVI holding company, with R&D in Ukraine and Russia, and Sales & Marketing entity in the USA)

• Helped with key hires, including sourcing and interviewing (Example: Dmitry Sotnikov to lead Business operation – he was most recently at Quest Software, Judah Jones first sales employee in USA)

• Helped secure Skolkovo resident status, including $1M in initial grant, helped to also secure over 150K US$ in grants from other government agencies

• Arranged meetings with leading web-hosters (HostEurope, Intergenia, Endurance, GoDaddy, Servint, Softlayer, etc), which resulted in the first commercial agreements being signed (HostEurope & ServInt)

• Helped recruit board advisor (Alex Tkachman)

• Found a several good investors for Series A @ 10x valuation of seed round

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«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

CASE STUDY: JELASTIC


|17

SergueiBeloussov

SashaGalitsky

BorisLozhkin

VictoriaTigipko

VasilyKhmelnitsky

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