Two important international tech events took place on May 28 and 29 in Moscow, nearly simultaneously and almost in the same location, a former chocolate factory in center town. The first was the legendary DLD Conference, making its Moscow debut, and the second event was an international startup and investor conference named “42.”
The events complemented each other rather than competing: by attending their programs over the two day period, guests were provided with one of the richest event experiences of the year.
The idea to set up DLD in Moscow originated in the IT cluster of Skolkovo, the state-sponsored tech hub nearing completion near the Russian capital, as part of its bid to assert itself on the global innovation map. But the conference started with a poetic evocation of Russia’s pre-high tech past by DLD Chairman Yossi Vardi. Recalling the favorite songs of the Israeli youth of the 50s, he started singing ‘Kalinka,’ with the attendees joining their voices in an improvised chorus. “Russia is now more than ‘Kalinka,’ it is also about great innovations,” Skolkovo President Viktor Vekselberg replied.
A “unique spirit” in “the city of extremes”
DLD offered rather classic conference subject sections on a variety of topics – such as digital and media strategy, technology and finance, the future of e-commerce, the education of tomorrow, and others – each of which were discussed by top entrepreneurs and experts.
But DLD’s unique spirit was displayed in events such as a “Special Inspiration” on architecture as well as an artistic performance, “The Ignorant Maestro,” from Itay Talgam and his son Imri during the conference.
In the evening, the conference participants were encouraged to “rock down Moscow, the city of extremes,” with an ‘Ultimate Party’ featuring DJ Spooky from New York City, Ukrainian pop rock group Quest Pistols, and Russian synthpop & new wave musicians Tesla Boys.
A bevy of global companies, from PayPal and eBay to Louis Vuitton and Nasdaq, many Western and Russian venture funds, as well as a number of Russian players, from startups to Internet giants, were represented at the conference with an approximate 50/50 split between Russian-speaking locals and foreign guests.
“The meeting of East and West is going on,” Vardi noted in an exchange with East-West Digital News.
On the second day, three startups made their presentations: US-Israeli online game developer Funtactix; Israeli startup GetTaxi, which operates in the UK, Israel and Russia; and the Russian interactive air display screen maker Displair.
“An increasing quantity and quality of startups”
The second conference, named “42” – a figure reflecting “the answer to the ultimate question of Life, the Universe, and Everything,” according to its organizers – took place in the building next door. While a few light and temperature issues created some contrast with the cozy atmosphere of DLD, “42” nevertheless looked less corporate, with 50 passionate entrepreneurs presenting their startups in a vast exhibition hall with some 500 industry experts and professionals, investors, and journalists in attendance.
Among the most original startups in the IT field were 1minute.ru, a website offering users to fund charities by participating in online marketing actions; Freshle, which defines itself as an “uncertainty scoring and assumption checking web service for entrepreneurs and investors,” LoyaltyPlant, a SaaS solution that allows small businesses to create their own mobile application with a loyalty program; NormaSugar.ru, an online service that helps those suffering from diabetes; Wizee, a mobile application helping users navigate and enjoy discounts in malls; and Yotru.com, a service that “leverages online social connections to increase trust in online stores.”
The winner of the startup contest was Excursiopedia, a Russian-German startup offering an online resource for travelers to find a guide for an individual tour in 600 cities across the globe.
“There are a number of freshly emerging companies and exciting projects here, with people truly excited about what they are doing,” said Anton Abashkin, senior manager at the PwC Center for technology and innovation, in an exchange with East-West Digital News. “That’s a good reason to expect new businesses on the scene soon.”
“I come to Moscow for a week every three weeks, and I have observed the increasing quality and quantity of Russian startups over the last six years – even though the ecosystem is not perfect yet and the infrastructure still needs to be improved,” said David Waroquier of Mangrove Capital Partners.
Silicon Valley cloners and e-commerce artists
During the panel discussions, experts and investors analyzed whether Russia should create a Silicon Valley clone or the country should choose its own way of developing technology and investment centers. Alexander Galitsky of Almaz Capital Partners, Igor Taber of Intel Capital, and David Waroquier shared their vision of the global market developments and discussed the pros and cons of investing in Russia – a market that sometimes seems surprising to foreign players.
In a discussion on Russian e-commerce, Adrien Henni of East-West Digital News and Arkady Sandler of Essential Commerce presented the latest figures and trends of this fast-growing market. Maëlle Gavet, Oskar Hartmann, and Dmitry Shashkin, the CEOs of Ozon.ru, KupiVip.ru and Mallstreet.ru, respectively, discussed the investment and entrepreneurial challenges faced by the industry. While Russia’s e-commerce potential remains largely untapped, infrastructure and financing do not meet the industry’s needs. “Running an e-commerce company in Russia requires even more dexterity than performing on the stage of the Bolshoi Ballet,” said Hartmann. The panelists agreed that Russian online retail is not mature enough to provide investors with immediate exit perspectives.
East-West Digital News took part as a media partner and moderated panel discussions at both conferences.
