Venture Roman: who received $100 million from Abramovich

Roman Abramovich became interested in venture investments. Forbes figured out how and why the billionaire invests in start-ups around the world.
17.09.2015
Forbes
Origin source
"Roman Abramovich for startups as a spectacular woman in red dress, if you have her attention, and even established any relationship, you are lucky, you will notice all" - laughing one of Israeli entrepreneurs. He himself money from Abramovich is unable to receive, but watched as several companies suddenly became famous thanks to the attention of Chelsea owner.

Benefit from Abramovich's investment for start-ups is clear: in addition to the money they get and the interest on the part of journalists, the target audience and potential partners. But why start-ups needed to Abramovich? "Each of them has a technology, product or service has a unique advantage in the market and good prospects of growth - explains a representative of the billionaire John Mann. - We sincerely hope that they will succeed. " More details to talk about investment strategy Abramovich Mann refused.

Abramovich invests in start-ups through three funds - Ervington Investments, Millhouse and Impulse VC. The first investments Ervington several British companies did back in 2012-2013, butAbramovich has only recently got a taste: in 2014-2015 its funds were given money to several dozen startups. For Millhouse deal with them - only a small part of the work: Foundation represents the interests of Abramovich, not only in ventures, but also, for example, in the development, industry and the pharmaceutical industry. For the most part Millhouse invests in Israeli companies, which were mainly created by immigrants from Russia or the Soviet Union. Ervington, by contrast, focuses on start-ups of foreign origin.

Venture deals in Millhouse and Ervington engaged several investment managers. Forbes was able to find out the names of two of them - this is Anna and Ivan Evdokimov Persiyanov. Yevdokimov working in various positions in the Millhouse for almost 10 years, before joining Persiyanov Abramovich Fund in 2014 was the investment director of "Rosnano" and a consultant at E & Y. It tells the founder of one of the start-ups, their work supervised by David Davidovich, a longtime associate of Abramovich since the days of "Sibneft". It is he who makes the final decision on all investments, told Forbes friend Abramovich. Managers and Davidovichconduct due diligence of companies, negotiate the transaction and after their conclusion obtained seats in the board of directors.

Abramovich himself usually does not participate in negotiations and meetings of boards of directors, but following the decision on the deal, and sometimes meets with entrepreneurs who have already received his investment. "We recently opened a new laboratory, and Roman came to us, - says Simon Litsyn, co-founder StoreDot, which Millhouse has invested $ 10 million - There is a Jewish tradition. On the door of the house append mezuzah - a box with a prayer, which should bring happiness. Roman took the honorable duty to myself. " According Litsyn, Abramovich is not the first visit to StoreDot. "We have met several times, and each time I was surprised how much he knows our works and is familiar with the technical side of the issue," - smiling Litsyn.

Investment managers in the Millhouse and Ervington bit, so to deal with hundreds of business, choosing the most promising projects, it is difficult, says one of the interlocutors Forbes. Several transactions in the UK and the US A staffRamović shut down on its own, but, apparently, quickly realized that the effective work through intermediaries - small seed funds and consultants who are engaged in the initial selection of projects and offer Millhouse Ervington and invest only in the most interesting of them. In Israel Abramovich structures used precisely this method of working. They act as intermediaries Tiger s.onsulting Rustam Tiger Group, the Altair Igor Ryaben'kii and several foundations, knows the source Forbes, has received an investment by one of them. Ryaben'kii confirmed of Forbes, which helps startups seek to Abramovich, but did not want to discuss the conditions of partnership. Rustam Tiger declined to comment.

Impulse VC Investment activity is organized differently. This fund (established by the founders Sape.ru exchange links, the share structure in which Abramovich bought the Mail.ru Group another billionaire, Alisher Usmanov) works only in Russia, but Millhouse participates in it as a limited partner, that is, give money for future investments, but not engaged in the selection of start-ups and deals, Forbes said the source close to the management. The declared volume of Impulse VCand five years -. $ 65 million Most of this amount is expected to receive from the Millhouse and spend on investment in online projects, specializing mainly in the internet marketing and e-commerce. Estimates of Forbes, one and a half years of work Impulse VC has invested about $ 10 million among the fund management partners -. Founders of the exchange of links Sape Grigori Firsov, Eugene Poshibalov and Kirill Belov - brother Anton Belov, director of the Museum of Modern Art "Garage", which is also funded structures Abramovich.
"There is a Jewish tradition: on the door of the house append mezuzah - a box with a prayer, which should bring happiness. Roman took the honorable duty of the "
What start-ups interested in funds that invest money Abramovich? The spread is quite wide: from the boat rental service to fast charging for smartphones and innovations in the petroleum industry. Great results of investment funds can not yet boast. Most of the invested companies developing well, it increases the number of partners and customers, but about millions of profit or vygotion resale Abramovich share in these start-ups too early, said investors working in Russia and Israel. "It took too little time. While they are only eyeing the venture capital market and try to find the right strategy and find those projects that will enable them to earn "- said friend Abramovich.

According to Seeds Litsyn, profit is not the main reason why Abramovich interested in the venture market. Billionaire is not more interested in return on investment, although he, too, remembers it, and breakthrough ideas that can propel humanity in terms of technology, says co-founder StoreDot. "If even a few start-ups, in which Abramovich has invested, will be able to change the world for the better, the novel itself will be known not only for the efficient development of natural resources, - Litsyn said. - As far as I understand from talking to him, such a result is more important than cash income for him. "