Russian Venture Fair: ‘Tatars are wise – they want to attract more as possible high tech businesses’
The Russian Venture Fair that was held in Kazan on 27 April has been marked with a large scale: at the exposition, besides Tatarstan innovation projects, there have been presented 55 Russian companies with their scientific developments. The correspondent of Realnoe Vremya has visited the fair and found out that the guests highly assessed the potential of Kazan as a site for startuppers from all over the country. However, with the proviso that in order to achieve the result they need time – for the development of existing infrastructure and the creating of good conditions for the developers.
'Field' unmanned crafts and a robot for buying shoes
The event has gathered a lot of high-ranked guests: an adviser to the president of Russia Andrey Fursenko, Executive Director of the Russian Venture Capital Association (RVCA) Albina Nikkonen, CEO of RVC (Russian Venture Company) Igor R. Agamirzian. Both foreign and domestic venture funds attended the event in the Korston business centre, as well as the heads of the best Russian technology companies, selected among 500 applicants.
The situation in the Russian innovative industry is that sometimes even most prospective developers at early stages suffer significant difficulties in searching an investor and entering the market. The format of the Venture Fait allows expanding the businesses for startuppers and just finding necessary financing. The main tool to achieve it is an exposition organized in the framework of the Fair, where the investment companies have the opportunity to present their developments to investors.
At XVI Russian Venture Fair, the exhibition was divided into two parts: at the first floor of Korston business centre there was the exposition of infrastructure for support of Tatarstan innovations, at the second floor – 55 innovative Russian companies with their developments.
Rustam Minnikhanov was viewing the exhibition in the company of Ministers and members of the Tatarstan Academy of Sciences. Especially the head of the Republic was interested in the developments that can stimulate the development of agriculture. For example, an unmanned complex of vertical take off-landing that is capable to fertilize fields. Now the amount of necessary investments for that project is $ 2 850 000. Also, Minnikhanov took notice of the developments connected with sport. For example, Korporativnyi sport PLC, which presented an automated system for quick organization of sports events and quick search of suitable sites.
In our opinion, one of the most memorizing start-ups in the exhibition was the software complex Try Fit that can simplify the buying of shoes in online shops (a buyer has no opportunity to try it on, so there is a high risk of returning). It consists of two parts: a hardware part – a sensor on the form of robotized foot that is put in a shoe and scan a shoe tree. In the other part there is a buyer who uses his own sensor integrated in the mobile phone for scanning his or her own foot. After all necessary actions, the special software programme informs a person what shoes he or she should take. Foreign investors highlighted exactly this project among others as one of the most viable.
'I can tell you that there is a project I can highlight – it is Try Fit. We should understand what niche it will take and what the alternatives are. Selling shoes via Internet has a problem of big amount of returns that reduce a margin significantly. This technology allows scanning 3D model that guarantees 99% match of shoes with customer requirements. Therefore, there will be less returns,' said Sven Lingjaerde, a managing partner of Endeavour Vision.
Sven Lingjaerde: 'This technology allows scanning 3D model that guarantees 99% match of shoes with customer requirements. Therefore, there will be less returns'
The key moment for the startuppers was the opportunity to participate in the Acceleration Program for innovative companies. There have been 378 applications from startups from 37 cities of Russia and 15 countries. The leader in the number of applications was Kazan, then Moscow, Naberezhnye Chelny, St. Petersburg and other cities. At this Fair there have been selected 15 lucky companies that will participate in the Acceleration programme in Kazan, Ireland, as well as in the Silicon Valley. The programme participation can give 8 million rubles of investments from the organizers of the programme and up to 1 million euros from international partners.
About Silicon Valley and why Kazan is better
In April of last year, at XV Russian and X Kazan Venture Fair Rustam Minnikhanov charged with organizing in Kazan on the basis of the existing infrastructure the permanent venture site in order to realize not only regional but also Russian projects. In other words, Kazan must be a test site for startuppers where there will be held the work on their training and development, in order the projects would become a fully-fledged businesses and successfully enter the market. At the plenary sitting, held in the framework of the Fair, Rustam Minnikhanov explained why it is necessary.
'We believe that it is necessary not only for us but for the whole country. Many things are so interesting. Perhaps, not everything has consumer properties yet, but people are working – our universities, they should be there,' told Minnikhanov. 'We proceed from the fact that the Republic should take an advantage of what we have created. Today we have special zones Alabuga, Innopolis. It is a huge work that demands huge efforts. Maybe, not everything will succeed at once, but happens you are working, you have no result, but then you see that there is a result. We are trying to move forward.'
Rustam Minnikhanov: 'Many things are so interesting. Perhaps, not everything has consumer properties yet, but people are working'
Realnoe Vremya has talked to the experts invited to the Venture Fair and found out that they all support the idea to create a hub open for innovative companies from all over the country in Kazan. But it should be noted that some our interlocutors have a quite negative attitude towards Innopolis.
'Tatars are wise – they want to attract as much as possible high tech businesses. It is an absolutely normal beginning, interesting, but mainly, there have been created conditions for startups. The infrastructure is very god here, and if there is the support from the regional government in order these companies behave well here, the companies will go here,' commented Sergey Polyakov, Director General of the Innovation Support Fund. 'The companies need infrastructure, the access to the preferential financial resources, and favorable environment in general – there is a problem of the pressing from some supervising bodies and so on. If everything there will be quite loyal, the companies will come here with great pleasure.'
Alexander Johnson, the managing director of Global Technology Capital called the attention the fact that the Silicon Valley in the USA was not created in that form that it does exist now – it has developed organically.
'Personally I would like that such fair would be held in Vladivostok, where I was born or in other region. But it doesn't work. The fact that we are returning to Kazan – for me it is an indicator that this innovative centre has organically developed. People want to come back here,' said Johnson. 'We should do so that young companies that want to go to the Valley would come in Kazan first. Nobody is waiting them in the Valley for no particular reason. If you have no clear advantage, even if they hear the accent, then it is over…'
Aleksander Galitsky: 'People come to Kazan from different regions because there is a developed infrastructure – it attracts people. But Innopolis takes time. Everything is determined by how much effort and patience from the President of Tatarstan.' Photo: forbes.ru
According to the head of venture fund Almaz Capital Partners Aleksander Galitsky, he still believes more in Kazan rather than Innopolis.
'Because you should count – how much it will take to go to some places. People come to Kazan from different regions because there is a developed infrastructure – it attracts people. But Innopolis takes time. Everything is determined by how much effort and patience from the President of Tatarstan – financial and others – will have to make this project realized…' summed up Galitsky.