Smart Money for Smart Start-ups

SMART MONEY FOR SMART STARTUPS
www.runacap.com © 2013, Runa Capital

RUNA CAPITAL PRE-HISTORY
FUND II The Cloud and beyond RUNA CAPITAL CONFIDENTIAL © 2013, Runa Capital
Ilya Zubarev
Senior Partner
Dmitry Chikhachev
Managing Partner
Serguei & Ilya founded
the consumer electronics
manufacturer; now the
largest in Russia with a
$500M/year turnover
Serguei & Ilya founded SWSoft, later acquired
Plesk and Parallels and re-baptized SWSoft to
Parallels. With over 1,000 employees and
$130M+ revenue, the company is the market
leader in Automation for Cloud Service
Providers, Container-based server and
Desktop virtualization.
Serguei & Ilya acquired assets that
became Acronis, specializing in physical
and virtual data management and
disaster recovery software, the
company employs 850+ people and
generates over $139M revenue.
Dmitry started his career in LM
ERICSSON, where he managed all
HR-related processes across 7 CIS
countries.
After completing MBA Dmitry moved to Head of Business
Development role at Ritzio Entertainment Group, top
gaming operator in Eastern Europe, with $800M in revenue,
leading international expansion projects: greenfield in
Kazakhstan (scaled to $15M), in Romania (scaled to $25M),
and acquisitions in Peru, Bolivia, Germany, Belarus, Czech
Republic for over $20M
Serguei & Ilya
invested $800K in
GFI, the provider
of a complete set
of IT solutions for
SMB. Investment
is partly exited,
with 5x ROI and
IRR 40%
Serguei & Ilya invested a total of
$3M in AutomatedQA provider
of tools for managing software
development and testing. The
investment is partly exited with
implied ROI in excess of 7.5x and
more than 44% IRR
1995-2000 2001-2005 2005-2009
Serguei Beloussov
Senior Partner
Dmitry started up and led Uvenco: a spin-
off of Ritzio Entertainment and grew it to
$25M in revenue, thus becoming the
leading operator of automated trade in
Eastern Europe
Serguei & Ilya founded the
leading accounting and ERP
software distributor in SEA
Serguei & Ilya founded Acumatica,
leading cloud ERP systems provider;
$55M company valuation based on
recent transaction

2010
RUNA CAPITAL 4 YEARS IN ACTION
Jun 2010
1st term-sheet
Jelastic
Feb 2011 Andre Bliznyuk
joins Runa
as Investment Partner
Aug 2012
First exit
4x ROI
Jul 2013 Peter Bauert
joins Runa
Aug 2013
raised Round B for 4x
Round A
Oct 2010
1st deal
closed
Apr 2010 –Runa
GP incorporated,
fundraising started
Dec 2010
2nd closing
$50M
Dec 2012
33 companies
$47M invested
Aug 2013
42 companies
$75M invested
Sep 2010
1st closing
$20M
Dec 2010
4 companies
$3M invested
Apr 2011
3rd closing
$75M
Dec 2011
12 companies
$10M invested
Apr 2012
Final closing
$135M
Dec 2009 - inception
“Cloud Incubator”
$30M seed fund
2011 2012 20132010 2011 2012 2013
RUNA CAPITAL 3 YEARS IN ACTION
Jun 2010
1st term-sheet
Jelastic
Feb 2011 Andre Bliznyuk
joins Runa
Aug 2012
First exit
4x ROI
joins Runa
Aug 2013 – Nginx
raised Round B at 4x
valuation to that of Round A
Oct 2010
1st deal
closed
Apr 2010 –Runa
GP incorporated,
fundraising started
Dec 2010
2nd closing
$50M
Dec 2012
33 companies
$47M invested
Aug 2013
42 companies
$75M invested
Sep 2010
1st closing
$20M
Dec 2010
4 companies
$3M invested
Apr 2011
3rd closing
$75M
Dec 2011
12 companies
$10M invested
Apr 2012
Final closing
$135M
Dec 2009 - inception
“Cloud Incubator”
$30M seed fund
FUND II The Cloud and beyond RUNA CAPITAL CONFIDENTIAL © 2013, Runa CapitalFUND II The Cloud and beyond RUNA CAPITAL CONFIDENTIAL © 2013, Runa Capital
Oct 2013 42
Second exit
1.7x ROI
Serguei
Beloussov
Ilya
Zubarev
Dmitry
Chickhachev
2012 2013
Aug 2012
First exit
4x ROI
joins Runa
Aug 2013 – Nginx
raised Round B at 4x
valuation to that of Round A
Oct 2013
Second exit
1.7 ROI
011 2012 2013
eb 2011 Andre Bliznyuk
ins Runa
s Investment Partner
Aug 2012
First exit
4x ROI
joins Runa
Dec 2012
33 companies
$47M invested
Aug 2013
42 companies
$75M investedd
Apr 2011
3rd closing
$75M
Dec 2011
12 companies
$10M invested
Apr 2012
Final closing
$135M
Oct 2013 42
Second exit
1.7x ROI

““
TEAM Operating Partner/CFO, CTO in residence
HR Director, PR Director
PORTFOLIO
$135M fund raised
$78M Invested (incl. $9M in seed stage)
$32M reserved for follow-ons
32 portfolio companie (excl. seed)
12 seed stage investments
3.6x realized return based on 2 exits
1.4x unrealized ROI
22% unrealized IRR on invested capital
2 Founding Partners
3 Investment Partners
2 Investment Directors
2 Analysts
POWERFUL BRAND
The list of venture investors in
Russia is led by Runa Capital
- September, 2012
Featured in top analytical, venture social media
RUNA CAPITAL VALUE CREATEDRUNA CAPITAL 4 YEARS IN ACTION
TEAM Operating Partner/CFO, CTO in residence
HR Director, PR Director
$135M
$78M
$32M
32
12
3.6x
1.4x
22%
fund raised
Invested (incl. $9M in seed stage)
reserved for follow-ons
portfolio companies (excl. seed)
seed stage investments
realized return based on 2 exits
unrealized ROI on invested capital
unrealized IRR on invested capital
D II The Cloud and beyond RUNA CAPITAL CONFIDENTIAL © 2013, Runa Capital
2 Founding Partners
3 Investment Partners
2 Investment Directors
2 Analysts
D II The Cloud and beyond RUNA CAPITAL CONFIDENTIAL © 2013, Runa Capital
Carried multiple by investments POWERFUL BRAND
The list of venture investors in
Russia is led by Runa Capital
- September, 2012
Featured in top analytical, venture social media
“ “
2,4x
1,6x
4,7x
1,5x
2,5x
3,1x
3,9x
3,5x
1,4x
Portfolio average

“
“
“““ “ “
RUNA CAPITAL WHY WE ARE SPECIAL?
ENTREPRENEURIAL
HANDS-ON EXPERTISE
Positioning Runa as co-founders – more than just
investor
Lending our own expertise to portfolio companies
> product, business development, operations,
fundraising
Enabling business growth of our portfolio
companies: recommend good people, introduce
right partners, bring to new markets
UNIQUE ABILITY TO
GENERATE PIPELINE
Active PR efforts and high visibility > investment in
Runa brand and brand of porfolio companies
Our reputation of “partner of choice” for most foreign
and local funds and IT corporations > easy
syndication
Active presence in regions of Russia and Ukraine
Access to many best industry experts and academia
from leading universities
SPECIFIC AREAS
OF EXCELLENCE
#1 VC firm in Cloud solutions for SMB: 35 industry
insiders as LP‟s, 10x more – advisors and friends.
Strong affiliation with major players: United Inter-
net, Go Daddy, Endurance, Parallels etc.
#1 VC firm in Russia and CIS: 100% brand aware-
ness, strong presence in regions of Russia
We are very good in several other areas: complex
software/strong engineering expertise, specific
regions – SEA/LatAm, specific verticals – sci-
ence/education/government
Brought 10+ partners (Wix, GoDaddy,
1&1, Endurance, Verio etc).
Recruited president & GM North
America.
Jim O’Hara (ex. LiveOffice)
As an entrepreneur you look for inves-
tors who can bring real value to your
company, [the] team at Runa Capital
are exactly this type of investor.
Gus Robertson, CEO Egor Rudi, Founder and CEO
Eruditor had a deal with Intel Capital Runa fully appreciates how to build
on the table, when I decided I want products that satisfy customers, [this]
Runa Capital to join the round, so I had makes Runa a truly special partner for
to persuade Intel to give part of it to any early stage technology company.
Runa...
Jeremy Levine, partner at BVP
“

RUNA CAPITAL #1 CLOUD COMPUTING
Network 250+ professionals
Ecosystem leading ﬁrms in Cloud SMB
Rafael
Laguna
Andreas
Gauger
Thomas
Strohe
Oleg
Tscheltzoff
Jochen
Berger
Reed J.
Caldwell
Thomas
Gorny
Patrick
Pulvermüller
Warren
Adelman
Michael
Choupak
Achim
Weiss
Tracy
Conrad
Portfolio cloud companies
6 venture partners
Seasoned IT Entrepreneurs and Investors (Igor
Borovikov, Alexander Galitsky, Igor Daniloff, Al-
exander Katalov, Achim Weiss, Oleg Tscheltsoff)
45 limited partners
35 successful IT entrepreneurs + 10 asset man-
agement /investment boutiques
200+ industry experts
professionals from leading companies in cloud
software, virtualization, IT security, hosting and
many more

MOBILE DEVICES
P2P INTERNET
CLOUD COMPUTING
THE OPPORTUNITY TRIPLE TSUNAMI
LANDSCAPE IS CHANGING
iPhones sold
iPads sold
Smartphones Sold
Facebook users
Facebook revenue
Internet users
Amazon AWS Revenue
Salesforce.com Revenue
Cloud market
2007
3.3M
0
120M
3.3M
0
120M
3.3M
0
120M
2012
130M
60M
650M
130M
60M
650M
130M
60M
650M
2017
500M?
400M?
2B?
500M?
400M?
2B?
500M?
400M?
2B?
MOBILE DEVICES
P2P INTERNET
CLOUD COMPUTING

THE OPPORTUNITY PERFECT STORM
NO ONE
IS SAFE
Apple –
what‟s next?
Facebook –
expectations, expectations…
HP – nobody
needs desktops
Dell – where to
buy your server?
Google –
becoming a platform
Cisco - Software-Deﬁned
Networking
Intel vs.
Qualcomm
Microsoft –
not a default

INVESTMENT THEME 1 SMALL BUSINESS – BIG MONEY
Hosting and Telco providers are building a
complete Cloud ecosystem of mass-market
cloud applications for SOHO/SMB, as the
market is set to explode over the next years:
- 48% was the growth in new data creation in 2012, reaching 2.7 Zettabytes
- SMB IT budgets are experiencing 4x growth vis-à-vis all IT budgets
- 4M SMBs entered cloud market in 2012
- Global SMB cloud market will grow by 28% year over year through 2015
Business software on
a subscription basis; $3bln
in sales in 2012
46M reviews
$137M in 2012 sales
Cloud ERP for SMB and enterprises;
$120M in 2012 sales
TOTAL GLOBAL IT SPENDING
Enterprise
$780bln
SMB
$510bln
60% 40%
GLOBAL CLOUD MARKET
DEC 12 DEC 13
EXAMPLES FROM RUNA I PORTFOLIO
Business
applications
Hosted communication
& collaboration
Web presence and web
applications
Infrastructure
as a service
$45bln
$96bln

EDUCATION
IMPROVEMENT POTENTIAL
Healthcare, Education and
Finance are among the
major sectors to beneﬁt
from new IT services
(bubble size – worldwide
industry size in US$ bln)
FINANCE
doubled the number of users to 2M in 1H 2012
the largest P2Plender in US, has loans for $2.3B+ as of Aug 2013
HEALTHCARE
provider or rapid genetic testing, accumulated a database of
more than 100,000 individuals after 4 years since launch,
and raised 50M+ in ﬁnancing in 12/12
offering online courses. In 2 years since its launch, it has 62 leading
American universities among its partners
INVESTMENT THEME 2 VERTICALS DISRUPTED
Next generation IT services bring new opportunities into many traditional verticals: Finance,
Healthcare, Education, Public sector – largest demand for improvement and growth potential:
disruptive innovation in such segments is leveraged by Social & Mobile penetration

Access to top engineering and scientiﬁc expertise for making sound judgment about
the viability of technology & provide valuable advice to developers. Very few VC look
at complex SW – less competition, best deals at unique terms. No amateur investors
– no inﬂated valuations.
Founded in 2008 Cloudera reached $100M in revenues in
2012 raised $65M in series E in 12/12
10gen - the company behind MongoDB, the leading NoSQL
database - raised $42M in series E in 5/12
In 2009 VMware acquired SpringSource – an application de-
velopment framework for enterprise Java - for $362M
Cisco acquired Israel‟s IntuCell, developer of advanced
self-optimizing network (SON) software, for $475M
Michael
Widenius
Paul
Maritz
Bertrand
Serlet
Michael
Dell
System Software, Big Data, Distributed Processing Middleware, PaaS (Platforms as a Service), Development
Tools – in demand because of infrastructure changes. Massive growth applications usage requires strong
underlying technologies. Advanced science requires complex algorithms and distributed data processing
OUR AREA OF EXCELLENCE AND COMPETITIVE ADVANTAGE
INVESTMENT THEME 3 COMPLEX SOFTWARE

PREFERED RANGE
$1-10M INVESTMENTS FOR
10-40% OF THE COMPANY
INVESTMENT FOCUS SUMMARY
CLOUD SOLUTIONS
FOR SMB
IT FOR EDUCATION,
FINANCE AND HEALTHCARE
COMPLEX
SOFTWARE
FOR DEALS LESS $1M
Runa team is a unique combination of IT expertise, investment instinct, operational excellence, experience of
international business development and knowledge of local tech industry – absolutely perfect set of
competence for early stage tech investments in Russia – Runa is our partner of choice.
Michael Triplett, Partner of Insight Venture Partners ($3bln+ top-10 US VC)

PREFERED RANGE
$0.5-1M INVESTMENTS FOR
10-40% OF THE COMPANY
SEED STAGE DEALS PHYSTECH VENTURES
FUND anchored in Dolgoprudny, Russia is a $30M seed fund focused on incubating and growing MIPT-related technology
companies that solve a measurable customer problem in a large or rapidly growing and sizable markets in IT, energy &
cleantech, new materials and high-tech devices. The MIPT-related companies will represent up to 60% of portfolio – rest are
high-quality start-ups founded by students and grads of world’s best technology universities
B2P SOFTWARE AND SERVICES
TO FINANCIAL SERVICES
HEALTHCARE IT 3D PRINTING & INFRASTRUCTURE
TECHNOLOGIES IN OIL & GAS SECTOREFFICIENT ENERGY USE EDUTECH
WHY DIFFERENT
LARGE AMOUNT OF
QUALIFIED SCIENCE AND
BUSINESS EXPERTS
Connected by MIPT Alumni
network
GOAL
INVEST IN NUMBER OF COMPANIES
WHICH ARE CAPABLE TO BECOME
INDUSTRY LEADERS SUCH AS
PARALLELS, ACRONIS, ABBYY,
VEEAM, AELITA SOFTWARE ETC

CASE STUDY
High performance web-server, hosts 22% of TOP 1M sites worldwide
(web-server #1 across top-1000). Rapidly gaining market share (number
of NGINX websites tripled last year). Powered by NGINX: Facebook,
Netﬂix, CNN, Techcrunch,Yandex, Wordpress, Groupon
2002-2004 Igor Sysoev creates
NGINX to solve Rambler‟s
dial-up clients problem
2009 the problem becomes
massive with mobile smart
devices usage
100,000,000
80,000,000
60,000,000
40,000,000
20,000,000
0
2006 2013
Concurrency
Image / Video
Delivery
Distributed
Architecture
Lightweight Apps
Mobile
2011 $3M Series A closed
2012 Gus Robertson from
RedHat recruited as CEO. HQ
is to move to USA.
2013 $10M Series B closed. NGINX-
PLUS sales to Enterprise started
2014 NGINX becomes N1
web server for Top-10,000
busiest websites

CASE STUDY
FUND II The Cloud and beyond RUNA CAPITAL CONFIDENTIAL
Jelastic is PaaS software which arms Java developers with a set of
services that can be used both for the development of new and existing
applications any complexity. Over 30000 developers subscribed,
partnerships with 15 hosting providers globally.
2009 Ruslan Synytsky
develops Hivext.“Cloud IDE”
2010 Seed round 500K
Java PaaS instead of IDE:
Jelastic
2011 Dmitry Sotnikov is hired
as COO (based in the U.S. LA)
2012 $2.5 Round B +
$1M R&D grant
2012 Launching commercial
product for hosting providers
2013 John Derrick (Intel, IBM) hired
as CEO. Pivot to Enterprise/OEM
(private cloud)
2014 Jelastic raising series B
in US. First Enterprise and
OEM sales.
2013 PHP added to the stack. 9000
developers, 12 partners, 5
continents. Backed by James
Gosling & Rasmus Lerdorf

CASE STUDY
Full-ﬂedged shopping cart solution implemented as embeddable AJAX
widget – cross-platform and fully integrated with all major payment & delivery
systems. Powers 400 000+ store-fronts in 175 countries, processing
10M+ transactions per month
2000 Ruslan Fazlyev
word‟s first PHP shopping
cart (inspired Roy Rubin)
2009 new generation
e-commerce SW as
spin-off from X-cart.
2011 $1,5M Series A closed
2012 Jim O‟Hara from Live Office
hired as President. San Diego
branch is opened.
2012 Sridhar Nagarajan
joins ECWID as CMO
2013 Channel strategy – first
success stories
2014 ECWID raising Series B in the
U.S. Massive scaling of the business.
2013 Direct/freemium results:
350,000 storefronts, 175
countries, 45 languages

EVEN MORE CASE STUDIES
COMPANY DESCRIPTION
Dnevnik provides a comprehensive educational platform for schools, including a learning management
system, school document flow management and a social network. It is used in more than 29 000 Russian
schools (52% market share in Russia).
Help to get $1,5M convertible debt from VEB Innovations venture fund and $6M private equity investment
company.
Online language learning service using game mechanics to engage users into the learning process. It
provides web service and mobile applications, which are user by over 7 000 000 registered users total in
Russia and Brasil.
Runa Capital hired COO Dmitry Staviskiy, ex-VP of International Operations at Evernote.
Provider of cloud-based business management software for automotive dealerships, which is based on
Microsoft Dynamics CRM and covers end-to-end dealers' operations from vehicle sales to workshop
activities.
Coordinated signing of $3M-contract with Nissan in 2012.
Next gen web security solution to protect online businesses from application level hackers attacks, which is
used by some of the top 50 web sites globally.
Assisted with NGINX integration.

HOW WE HELP PRODUCT DEVELOPMENT #1
• Assessment of development team skills, hiring assistance,
recommendations for competence development
• Parallels/Acronis/Acumatica/United Internet and other created by
us companies (PORTFOLIO) products are global leaders at scale,
with lots of proof and 10s of millions of users
• We have developed a very sophisticated process of recruiting,
assessing, improving skills of our global and specifically Russian
teams – relations with top Universities, specific recruiter
relationship, tests, PR, direct access to talent pools we know and
more
• Management and Motivation of extensive development teams in
Russia, what works what does not
• PORTFOLIO employs several 1000s of world class engineers,
working at large teams for long periods of time on release of broad
products, specifically in Russia but also US, Europe, Asia.
• We would provide direct access to key, relevant Human
Resources and Engineering manager in those teams, including
outside of Russia to discuss specifics of how engineers are
motivated and managed.

• Implementing an efficient engineering process – Planning,
Program Management, Quality Assurance, Documentation,
Release Cadence
• Russia/CIS still produces significant number of high quality
educated engineers and scientists. However there is very few
teams / people with world engineering management and
engineering culture
• We have those teams in our Portfolio and could help to share best
practices, processes, tools, give access to proven consultants,
recommend vendors. Again direct access to our contacts and
people would be provided. Especially Program Management
• Help on scalable, reliable, maintainable, extendable, secure,
available, efficient, fast and such more product architecture
• It is only possible to succeed with products which scale to 10s of
millions of users, in 100+ countries, grown over 10+ years – hence
with changing tech landscape and against very strong competitors
• This puts very serious strain on well thought product and
technology architecture. We believe we have that
expertise/expirience and understanding on where to get it for you

• Reviewing and commenting on product development plans,
setting priorities, following up, structured feedback on the
features and parameters of the product
• Product management and Product completeness are the hardest
things to grasp. We will involve best and relevant experts from our
Portfolios to provide such feedback in real time
• Weekly or Monthly, monitoring product development process –
pointing out mistakes, recommendations on fixing them,
practical help
• As a part of product development involvement we could assign
part-time professional engineering / product development expert,
to meet on weekly basis and help structure the things above in real
time and over the development of the company
• While building companies in our portfolio with bare hands we
paid 100s of millions of $$ for mistakes in product development
– there is no need to repeat our mistakes

HOW WE HELP BUSINESS DEVELOPMENT #1
• Developing efficient and profitable business model for target
markets
• Establishing the right business model for your project is about
reducing friction; it‟s about knowing how customers want to buy,
who they want to buy from, and how everyone should get paid.
• The Runa Capital team provides hands-on expertise with a global
perspective. We know what works and if we don‟t have the answer,
we have access to the right expert.
• Example: Thinkgrid (cloud hosting) plan & business model was
reviewed by Andreas Gauger, former CEO of 1&1, the largest
hosting company in the world.
• Search of key management positions for international
development of your business
• Hiring key business development talent is like betting on horses;
you pay upfront and you don‟t know the outcome until after the
race.
• The Runa Capital team can help you find the right talent, connect
you with right/best recruiters and we have access to back-channel
references – you will have better odds at succeeding and you will
increase your speed to market.
• Example: Ezequiel Steiner, CEO of Acumatica, is former VP
Corporate & Business Development @ Parallels.

• Finding key technology and Go-To-Market partners for target
markets, facilitating negotiations
• Leveraging partners is a key method to accelerating your project.
Picking the wrong partners and/or ending up in protracted
negotiations is the most common obstacle.
• The Runa Capital team has hands-on experience and we can help
you avoid the pitfalls.
• Example: Connected Ruslan Synytskiy, CEO/Founder Jelastic
with key contact @ HostEurope Germany, ServInt USA,
Tsukaeru Japan, Go Daddy USA and more
• Practical help in getting first customer traction, references in
each vertical & geographical market
• Getting market acceptance is a key milestone; the quicker you
have validation the faster you can sell.
• The Runa Capital team has access to 100s of companies globally
who would be eager to become your first referencable customer.
• Example: Nginx secured commercial relationship with Dell and
an investment from Michael Dell, based on recommendation
from Serguei Beloussov.
• Reviewing and commenting business plans, particularly in
relation to global expansion, specific to every market

• Involving international experts from network of Runa Capital
• Runa Capital and its investors are made up of successful
entrepreneurs. What is most special is expertise in building
business not only in US/Russia, but also all over Europe, Asia
including Japan and China, Africa, South America
• Example: Serguei Beloussov & Ilya Zubarev have built two
$150M+ software companies in 10 years (Once is hard – twice
has never been done)
• Advice on developing specific marketing plans for target markets
• Marketing plans are about positioning, messaging, pricing, etc. All
investors have read the “books”, but the Runa Capital team has
executed and can bring hands-on expertise.
• Example: John Howell, former President of Solomon Software
International (sold to MSFT) invested a substantial amount of
time to review & improve marketing plans for Acumatica.
• Building and monitoring global sales channels
• Scaling your business through a repeatable sales process executed
on a global basis is critical in the later stages of your project. The
Runa Capital team is made up of individuals that have run
companies with $100M+ revenue on a global scale..
• Example: As CEO of Parallels, Serguei Beloussov personally
hired the majority of the sales force and put in place repeatable
sales processes.

HOW WE HELP OPERATIONS #1
• Support in setting up the right company structure to ensure
maximum value for shareholders / founders and compliance with
international tax regulations.
• Setting up the company correctly during its early stages can avoid
substantial tax charges and liabilities for the company / founders
down the road. Global have highly optimized tax structures which
provides them significant long term advantage
• The Runa Capital team has substantial hands on experience with
properly structuring companies to take advantage of global tax
regimes.
• Example: Swiss parent company with negotiated 10 year tax
holiday plus Russia based development entity and USA based
sales entity, with proper IP transfer, resell agreements, tax
opinions, pricing studies and more
• Registering companies and help with corporate/legal issues.
• It‟s a daunting task to deal with legal issues – patents, immigration,
corporate, employee and finance on a global basis for
entrepreneurs who do not have much experience; plus it can be a
major drain on time & money.
• The Runa Capital team has the expertise and will be helping you
and your team every step along the way.
• Examples: We helped Jelastic secure a USA H1B visa for
Dmitry Sotnikov, Parallels has 150+ US and EU patents filed

• Support in setting you physical office in various parts of the
world, administration, IT
• Setting up an office sounds simple, but site selection, negotiating
with landlords and laying out work space to ensure highest level of
productivity are activities prone to trial and errors.
• These errors can be costly and we can help you avoid such
mistakes. Collectively, our team has setup 100s of offices in 50+
countries and you can tap into our wealth of knowledge and
expertise.
• Examples: Acumatica just expanded its USA presence with
new office outside Washington D.C., Parallels has significant
offices in 18+ countries.
• Financial planning, accounting and reporting, tax advice
• As your company evolves, so does the need for proper financial
management and reporting, which would be crucial in making
business ready for the next stage
• Our vast network of experts have experience with financial
planning, budgeting, reporting, and tax at all levels.
• Example: Helped TravelMenu prepare its financial forecast for
its next round of funding; or helped Ezequiel Steiner, CEO of
Acumatica, improve financial reporting capabilities and prepare
for audit with big4 accounting firms

• Support in filing domestic and foreign patents, scientific
consultancy for patents
• Protecting you intellectual property (patents, trademarks, etc.) is a
critical element to support your long-term competitive strategy.
• The Runa Capital team has the collective experience of 1000s of
patent/trademark filings. We can provide the know-how that allows
you to make this process easy and quick.
• Example: Leverage Parallels‟ long-term relationship with
George Bardmesser, a Russian speaking Patent attorney in the
USA.
• Support in recruitment and executive search, other HR
consulting
• Ensuring you hire the right talent, eliminate non-performers quickly,
and retain your best employees for the long-run are critical
success factors that will determine your company‟s success.
• The Runa Capital team has hired 1000s of individuals – we have a
vast network for you to tap into and we can help you identify the
right fit. We can also help you deal with current employees (good
or bad).
• Example: Piggy-back on long-term relationship and favorable
terms & conditions for good recruiters such as Heidrick and
Struggles, and Lee Silver
• Reconciling cost structures and negotiating with key vendors

HOW WE HELP TAKING TO THE NEXT LEVEL #1
• Development of a long-term equity story, finding next round of
investors and preparing for an IPO / trade-sale
• Getting additional funding (public/private) and/or getting acquired
is about selling the story. It‟s not about the best product/service.
• The Runa Capital team has extensive experience in crafting the
story and selling it. We have access to a almost any imaginable
investors in the world (financial/corporate), more importantly we
could find the right fit for you
• Example: Helped secure corporate financing from Visma (KKR
portfolio company) for Acumatica at valuation > 5x prior round.
• Establishing corporate governance framework: Board of
Directors, split of responsibilities between management
(CEO/CFO/CTO/etc.)
• As your company grows, so does the complexity around proper
decision making and separation of duties. Scaling your company
is about removing friction and frication exists where there is
uncertainty about responsibilities / accountability.
• Many of the Runa Capital team members have been in CEO, CFO,
CTO, and other executive roles as well as served as board
members for companies of various size.
• Example: you will have direct access to Serguei Beloussov, a
CEO/Entrepreneur and Peter Bauert, a CFO/COO, each with
20+ years experience and $2B+ in shareholder value creation.

• Establishing stock-based management and employee incentive
schemes
• As you expand the team beyond the founders, it will become
critical to have the right employee incentive schemes. Do you
know what compensation (base/bonus), option package /
acceleration / severance / perks you should offer a CEO/CFO/etc?
• The Runa Capital team has been in your shoes and knows first
hand what is common practice vs. what is best practice. Closing
the right candidate at the right price is critical – don‟t learn the hard
way.
• Example: Helped shape an equity incentive scheme for Alawar
and Badoo.com.
• Example: ask for a verbal record of hiring some of the top
executives and related pricing
• Building the internal infrastructure: finance function, internal
audit, investor relations
• Do you know the difference between FP&A and Accounting? Do
you know when you should bring in a CFO vs. Group Controller vs.
Local Controllers? Do you have templates for budgets?
• The Runa Capital team has answers to each and every one of
these and much more. Let them help you take the guess work out
of the equation with practical / tactical support and advise.
• Example: Helped Mikhail Ushakov, CEO Metabar, improve his
periodic report and budgeting process through the use of a
standard template.

• Introducing the necessary accounting and reporting systems:
audited IFRS accounts, IFRS-based management accounts, 5-
year business plan and investment program
• As your business gets traction and revenue increases
substantially, you will need to introduce much more formal /
rigorous financial systems, processes, and procedures.
• Are you dealing with your first external audit? Have you been
asked to produce a detailed long-range financial mode?
Irrespective of what is being asked off you, the Runa Capital team
can help with practical/tactical support that draws upon its vast
network of operations/finance experts.
• Example: In process of helping Acumatica convert from cash
accounting to accrual accounting, as it gets ready for the audit.
• Involving third-party consultants: independent auditors, tax and
legal advisers
• At times, you will have to involve 3rd party service providers to help
you with a project. Do you know which firm you should work with?
Have you worked with partners / associates at that firm?
• The Runa Capital team draws upon a large network of 3rd party
professionals that can help you with legal, tax, accounting, and
audit needs.
• Example: You can leverage long-term relationship and
favorable pricing with lawyers such as Craig Sherman @
Wilson Sonsini, auditors such as Mike Bentley @ E&Y, or tax
experts like Jeremy Skogsbergh @ PWC

HINT #1 RECRUIT ONLY A+ PEOPLE

HINT #2 ADDRESS MASSIVE & PAINFUL PROBLEM
400,000,000 pet dogs in the world X
20% small dogs X $68.99 =
$5.5 Billion Market!$68.99 + tax

HINT #3 KEEP NARROW FOCUS

HINT #4 PEACEFULLY SOLVE INTERNAL PROBLEMS

HINT #5 SEEK ADVICE AND FEEDBACK

HINT #6 LEARN TO WORK WITH INVESTOR

HINT #7 CARE ABOUT BUSINESS PROCESSES

HINT #8 PAY ATTENTION TO COMPETITION
$68.99 + tax

HINT #9 IT IS NOT AN EASY WALK IN A PARK!

INVESTMENT PHILOSOPHY STRATEGY & PRIORITIES
We select projects were substantial value is created
through software engineering or other related domain ex-
pertise
We aim to efﬁciently utilize the resources of existing portfo-
lio and other related companies (e.g. Parallels, Acronis,
Acumatica, 1&1/United Internet, etc.) – as an intellectual
resource, technological partner and sales channel.
We look for projects with a high degree of „hard-to-clone‟
or „long-to-clone‟, potentially patentable IP – as a natural
barrier against competition and our team‟s area of excel-
lence.
We aim to invest on co-founder terms and prioritize proj-
ects with sensible development and marketing timeframes
and budgets, and clear breakeven points
We pro-actively enable growth of our portfolio investments
through putting them into right business environment and
providing practical support/guidance in engineering, opera-
tions, marketing strategy, ﬁnance and, ultimately, obtaining
liquidity.
FOCUS ON KEY
TEAM COMPETENCIES
PORTFOLIO SYNERGIES
AND LEVERAGE
BARRIERS AGAINST
COMPETITION
EFFICIENT USE
OF CAPITAL
ENABLING
GROWTH

TEAM FOUNDING PARTNERS
Serguei Beloussov
Founding Partner
Sergey advises on key deals including
Nginx, DMS Technosoft and ECWID;
value added to Runa:
- International network
- Technology vision
- Entrepreneurial spirit
Ilya Zubarev
Founding Partner
Ilya focuses on key deals, including
Dnevnik, LinguaLeo and Eruditor;
value added to Runa:
- Deep operational experience
- Deal structuring
- Entrepreneurial spirit
1995-2000 2001-2005 2005-2009
Serguei & Ilya founded SWSoft, later acquired Plesk and Parallels and re-baptized SWSoft to
Parallels. With over 1,000 employees and $150M+ revenue, the company is the market leader in
Automation for Cloud Service Providers, Container-based server and Desktop virtualization
Serguei & Ilya acquired assets that became Acronis, specializing in physical
and virtual data management and disaster recovery software, the company em-
ploys 850+ people and generates over $150M revenue
Serguei & Ilya founded the consumer
electronics manufacturer; now the
largest in Russia with a $500M/year
Turnover
Serguei & Ilya founded the leading ac-
counting and ERP software distributor
in SEA
Serguei & Ilya invested $800K in GFI, the
provider of a complete set of IT solutions
for SMB. Investment is partly exited, with
5x ROI and IRR 40%
Serguei & Ilya invested a total of $3M in Au-
tomatedQA provider of tools for managing
software development and testing. The in-
vestment is partly exited with total implied
ROI in excess of 7x and more than 40% IRR

TEAM INVESTMENT PARTNERS
Dmitry
Chikhachev
Andre
Bliznyuk
Peter
Bauert
• Business executive with 18+ years of broad
cross-functional experience: CEO/COO in
Uvenco (scaled from $0 to $25M in revenue),
Head of international business development in
Ritzio Entertainment Group ($600M
revenue/$75M overseas operations), HR
Director of LM Ericsson CIS.
• MSc Moscow Institute of Physics and
Technology (PhysTech), MBA American
Institute of Business and Economics
• Dmitry‟s investment focus is SMB cloud,
complex SW, mobile
• Special expertise: M&A, Greenﬁeld project
management, HR management
• Investment and corporate ﬁnance professional
with over 10 years of experience: Goldman
Sachs, UBS, Sistema. Over 20 IPOs and other
fundraising projects for a total amount of tens
of US$bn – including Mail.ru, Comstar, Sistema
IPOs on the LSE.
• MA Moscow State University
• Andre‟s investment focus is vertical markets +
international opportunities
• Special expertise:
• Financial sector
• Investor relations
• Public capital markets
• Finance and Operational executive with 20+
years experience. Recent roles include
CFO/COO at Parallels ($150M+ Revenue) and
EVP at FAST (Acquired by MSFT for $1.3B).
• BS Computer Science + MBA (Dartmouth
College - Highest Distinction)
• Peter focuses on cloud-solutions for SMBs, as
well as North American opportunities
• Special expertise:
• Tax structuring
• Financial mgmt/reporting
• Recruiting

WELCOME TO
RUNA CAPITAL!
Email: dc@runacap.com
Twitter: @RunaCapital

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