Archive of thenextweb.com
Written on 18th June 2009
2 COMMENTS 
Zee, Editor in Chief at The Next Web, Principal at WeDoCreative.
State owned VC fund Russian Venture Company (RVK), are launching a $65 Million seed fund in an aim to enhance the startup industry in Russia.
Set up in 2007, the fund is not only a fund within itself but also contribute seed capital to 6 other funds.
Igor Agamirzyan, General Director of RVK, announced at Moscow Venture Forum today that RVK will launch a “seed” fund of 2 billion Rubles (ca. $65 million), reported Vedomosti newspaper.
According tothe blog of visual search engine Quintura, RVK plans to fund 50 to 80 companies over the next 3 years and will invest up to 25 million rubles ($0.8 million) for a minimum 25% (more…)
Written on 26th May 2009
7 COMMENTS
Zee, Editor in Chief at The Next Web, Principal at WeDoCreative.
We informed you last week that Russian investment group, Digital Sky Technologies (DST), were eyeing a $200 million investment in Facebook.
Facebook has confirmed an offer of $200 million had in fact been made, and today they have now officially accepted it. The exchange will see Facebook give up 1.96 percent of the company, valuing the social network at $10 billion. The company also has plans to purchase an additional $100 million in common stock, a move that will help help Facebook employees cash out some of their current shares.
As yet there is no confirmation as to whether DST have also gained a board seat as part of the deal.
Below is the press release:
PALO ALTO, Calif., May 26 /PRNewswire/ — Facebook today announced that Digital Sky Technologies (DST), one of the leading internet investment groups globally with significant stakes in Eastern European and Russian internet businesses, has made a $200 million investment in Facebook in exchange for preferred stock, representing a 1.96 percent equity stake at a $10 billion valuation.
In addition, DST has indicated that it is planning to offer to purchase at least $100 million of Facebook common stock from existing common stockholders that would facilitate liquidity for current and former employees’ vested shares in the company. The details of the plan are expected to be announced to eligible participants during the summer. Consistent with Facebook’s practice with other recent investors, DST will not be represented on the Facebook board or hold special observer rights. (more…)
Written on 23rd May 2009
3 COMMENTS
Zee, Editor in Chief at The Next Web, Principal at WeDoCreative.
A Russian Internet group, Digital Sky Technologies, have reportedly offered $200 million in investment to Facebook. The deal would value the worlds largest social networking site at approximately $10 billion.
Although full details of the investment have not been revealed, Digital Sky have put in an offer of $200 million in the company’s preferred stock, and an additional $100 million to $150 million investment in the company’s common stock.
Mark Zuckerberg, Facebook’s CEO, has been quoted as saying
“If there’s an investment to be done on very good terms, we will consider it if for no other reason than to have more buffer if we want to do something in the future.”
Digital Sky Technologies are established internet players, with a majority stake in Russian email service Mail.ru. (more…)
Written on 19th January 2009
1 COMMENT
Ernst-Jan Pfauth, editor in chief
The online advertising industry in Russia isn’t doing too bad. In October 2008, Sfnblog noted that online marketing communications in Russia have experienced a surge in financial backing since the beginning of this year. Total marketing numbers for 2008 would average between $1.04 billion and $1.48 billion, said market analysis firm Tagline at the annual Russian Internet Week. They based their findings on a study of 600 companies.
But the country’s box office is doing even better. It reached $830 million in 2008, up 47 percent on 2007. If you take that in account, the following news isn’t as weird as it seems.
Mail.ru has become a major investor in production of horror and adventure movie “Viy” in exchange for movie box office returns, reported business newspaper Kommersant (via Quintura). Last summer, the Internet portal pumped $5 million in the movie, what makes up for some 25 percent of Viy’s budget. Here’s the result:
The mystery movie is based on the book of Nikolay Gogol and hits cinemas in the fourth quarter of 2009.
Written on 12th January 2009
0 COMMENTS
Toivo Tänavsuu, Next Web Estonian Web Tipr & founder of TigerPrises.com
NATO wants to be well prepared when facing cyber-terrorists, so the alliance has established a think tank called the Cooperative Cyber Defence Centre of Excellence in Estonia. Let’s just call it NATO Cyberbrain.
No computer freaks, but just ties
I paid a visit to Alliance’s Cyberbrain and was somewhat surprised – instead of a bunch of computer freaks sitting behind screens and being clinged into cyberspace I only saw men wearing suits and ties. They explained to me it’s a think tank, receiving the “raw data” from national CERTs (computer emergency response teams).
Own rules for cyber attacks
Another funny thing is that they follow the rules created by themselves. They are neither accountable to NATO nor US or Estonia’sn Defence Ministry’s. Only to their own steering committee.
So, for example, if this committee would decide to establish close cooperation with Kaspersky, which people say has connections with Russian administration, they’d do it. Although the Kremlin is believed to have fuelled or at least approved well-known cyberattacks against Estonia and Georgia.
Read more about 2007 cyber attacks against Estonia from here and beware – it could happen in your country too. (more…)
Written on 12th January 2009
1 COMMENT
Ernst-Jan Pfauth, editor in chief
Another lost battle for Google in Russia. After the billboards in the streets of Moscow, the failed acquisition of contextual advertisement company Begun, and an army of Russian oligarchs on the wrong side – Google now lost the prime search spot in Mozilla Firefox to Yandex.
Harvey Anderson, VP and General Counsel of Mozilla Corporation, wrote on his personal blog:
In October, we asked for feedback on creating a deeper partnership with Yandex, one in which we would make Yandex search features the default in our Firefox Russian language builds. Over the past few months, we have listened to feedback, talked with our localizers, studied the trends of our Firefox Yandex builds, and reviewed the Yandex user experience. All this activity led us to the conclusion that our Russian users really wanted direct access to the Yandex search services in official Firefox RU builds.
Thus Yandex will be standard in the Russian release of Firefox 3.1.
Firefox has about 20 percent share of Internet browsers in Russia and Yandex is Russia’s leading search engine with 54 percent share of searches.
[Hat tip: Quintura (who else?)]
Written on 23rd December 2008
2 COMMENTS
Ernst-Jan Pfauth, editor in chief
It’s the most wonderful time of the year, especially when you’re a web professional. Not reindeers, but lists keep flying around your head. On The Next Web, we already presented the Five Favorite Apps – now it’s time to be more specific.
We have an international focus at this blog. When The Next Web launched on January 7th, we told you we wouldn’t limit our coverage just to the Valley. I think it’s safe to say we’ve kept that promise. Also when it comes to Russia. With the help of Yakov Sadchikov, we’ve covered almost every million euro deal, emerging trends, and cool start-ups coming from Europe’s largest Internet market.
Let’s celebrate that with a list of Russian start-ups that rocked the web in 2008. It’s compiled by Yakov, whose blog you should definitely check out. He’s the CEO of visual search engine Quintura and managed to get articles from his corporate blog on Techmeme, TechCrunch, and The Next Web on a monthly basis. How’s that for a successful blogger? Alright, here we go:
List by Yakov Sadchikov
- WomanJournal.ru, leading women-centric online site, raised €6 million from Ventech Capital, XAnge Capital and AGF Private Equity.
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KupiVIP.ru, online shopping club, raised several million dollars from Mangrove Capital Partners, ABRT Fund and Arlan.
- Tvigo (Tvigle.ru), online TV community and content production, raised $8 million from Moscow Venture Fund (Allianz Rosno Asset Management).
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EZtalk, mobile call-back service operator, raised $4 million from VTB Venture Fund.
- Mobile Direct, mobile internet advertising solution provider, raised several million dollars from Ru-Net II.
- MoySklad (LogneX), online inventory management solution provider, raised seed round from Ambient Sound Investments.
- MirTesen.ru, location-based social network, raised $5 million from Finam.
- JS-Kit, social application widget provider, raised $3.6 million from Altos Ventures and TEF3.
- EnterMedia, in-game advertising solution provider, raised first found from Mangrove Capital Partners and ABRT Fund.
- Evernote, provider of electronic note applications, raised $5 million from Troika Venture Fund.
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Written on 26th November 2008
2 COMMENTS
Ernst-Jan Pfauth, editor in chief
German shopping club Brands4Friends.de has raised a €10 million round of funding. It’s their series C, led by Partech International. Some old friends from previous rounds joined them: Mangrove Capital Partners and Holtzbrinck Ventures both chipped in. In these rough economic times, such a large boost in an ecommerce site is quit spectacular.
Yet when you read Brands4Friends’ story, the financial backing makes complete sense.
Maybe it’s the concept of a shopping club that does it. Fashion victims still want to spice up their outfits with designer brands, yet for a bargain price. Clubs like Brands4Friends, French Vente-privee.com, and Russian KupiVIP.ru are invite only. As soon as you’re among the club of happy spenders, a world of deluxe sales opens up for you. From grand cru wines to a Hermes bag, you can get it for a special, really special price. KupiVIPR.ru recently got a multi million financial boost too.
Brands4friends.de launched in September 2007 and already has 1.2 million online club members – adding 10k users every day. Its current annual revenue run rate is €30 million. I’d say: join the club and start a shopping club for your own country. Successful examples enough.
Written on 25th November 2008
3 COMMENTS
Ernst-Jan Pfauth, editor in chief
Yesterday, I reported about a possible acquisition of Forbes by Russian investment fund ONIXEM Group. Rumors were stirred by an article from Russian newspaper Trud and spread rapidly through the blogosphere as soon as Yakov from the Quintura blog translated the article. With exciting though vague news like that, somebody needs to do some fact checking. Yet where to start?
Whenever something newsworthy occurs concerning start-ups, an email to its founder is quickly sent. But who do you contact when the news concerns major parties like Forbes and the ONIXEM Group? Why would they care to answer the call of a blogger?
Well-connected tech blogosphere
Om Malik
Luckily, the tech blogosphere as a whole is well connected. There’s always someone with an old friend at the right company. In the case of Forbes and its Russian connection, this “someone” turned out to be Om Malik.
An investor in Forbes
The famous tech blogger used to work at Forbes and sent a line to an old Forbes connection yesterday:
[..] I emailed Roger McNamee, who heads up Elevation Partners and is an investor in Forbes. His intervention got me a quick response. “Forbes absolutely denies this rumor, and has no knowledge of the source,” Forbes said in an emailed statement. “Forbes Russia is also not for sale to the ONEXIM group.”
Crowd sourcing fact checking
Behold the power of many. The tech blogosphere crowd sources its fact checking and even unravels mysteries about a Russian playboy and his desire to acquire a traditional American publishing house.
Photo credit: Thomas Hawk
Written on 24th November 2008
1 COMMENT
Ernst-Jan Pfauth, editor in chief
“When the economy is shrinking”, Yakov Sadchikov from Russian blog Quintura writes, “it’s a good time for private equity investors to buy assets at a low valuation.” Companies from his country are doing just so. News stories about Russian funds going on a buying spree frequently find their way to this blog. According to some recent reports, ONEXIM Group is about to acquire publishing giant Forbes.
Mikhail Prokhorov
The Forbes portfolio include the famous Forbes magazine and spin-offs like ForbesAutos. These publications will soon probably be in Russian hands. The ONEXIM Group, led by oligarch and playboy Mikhail Prokhorov, is one of Russia’s largest private investment funds – worth $25 billion – with a focus on mining industry, real estate, and energy.
Surviving
If the complicated acquisition will be completed, many people might dislike the fact a Russian company owns a traditional American publishing house. Yet in these harsh times, acquisitions by foreign parties might be their only way to survive.
State owned VC fund Russian Venture Company (RVK), are launching a $65 Million seed fund in an aim to enhance the startup industry in Russia.
The Next Web Blog is closely associated with The Next Web Conference which is held annually in Amsterdam, The Netherlands. At this event speakers from all over the world come together to talk about, and show off, the future of the Web. (More info 
