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Pitch Session for Startups: New Areas of Growth for Business and Government
24 May 2018
09:00—10:15
KEY CONCLUSIONS
Start-ups are a tool for business competitiveness in the digital economy

We are glad to work with start-ups, because in the era of digitalization, that concerns the telecommunications industry as well, we will not survive without start-ups — Artashes Sivkov, Executive Vice President for Corporate Business Development, PJSC VimpelCom.

For us, coexistence with start-ups is a matter of survival. We need it in order to maintain a fresh spirit and adapt our value propositions with the right rhythm, at the right pace — Pierre-Yves Jeanne, Commercial Director of E-Sales, Service Solutions and Business Services Department, Michelin Russian Tyre Manufacturing Company.

Foreign corporations cooperate with Russian start-ups

We do not limit ourselves to the digital sphere in the search for young interesting partners. We also talk about the Russian scientific community. We have programmes not just for digital start-ups, but for start-ups in pharmaceuticals. <...> We have a cooperation programme with Moscow, with Russia, we first chose three companies, not even companies, three groups — John Edward Butler Ransohoff, Vice President, Strategic Projects, Global External Innovation & Alliances, Bayer AG.

We have two major projects with Bayer, both on women's health. We have already conducted over 1,000 female health clinics in Russia. Very soon we will present the project in Berlin along with German and French projects — Dmitry Maznitsa, General Director, Founder, Qapsula.

Among our customers we count about 20 large international corporations. <...> For the last two months we have been actively exploring the international markets, because export revenue is a key parameter for us. Two key markets for us are the UK market, the second is the US market — Alexey Kostarev, Development Director, Co-Owner, Robot Vera.

ISSUES
Lack of mutual understanding between corporations and start-ups

At the Foundation for the Development of Internet Initiatives we work with start-ups. We could not but pay attention to the fact that in our country the interaction between start-ups and large corporations is rather poorly organized — Kirill Varlamov, Head, Internet Initiatives Development Fund (IIDF).

This is the banking sector, most likely with VTB. <...> They weren’t ready to just pilot things. <...> That profit that they could earn, it was not so critical for them — Dmitry Stepanenko, General Director, Founder, Hot WiFi.

Of course, we need to work with a portfolio of start-ups. We would like to have more start-ups, in particular in the field of smart transportation. We would like to have a choice, because now we are turning our eyes abroad in many ways just to gain a potential portfolio — Dr. Akhat F. Urmanov, Deputy Chairman-Management Board at KAMAZ PTC.

First, start-ups do not understand the size of corporations. <...> Second, 80% of start-ups are not ready to maintain the service level and do not understand corporate procedures at all — Dmitry Kalaev, , Director of Acceleration Programmes, Internet Initiative Development Fund .

The constraints faced by corporations and banks in integrating start-ups and generally discussing partnerships with them lie in distrust — Ilya Chizhevsky, CEO, OTP Bank.

A large number of bureaucratic barriers

It is extremely difficult for most start-ups to break through bureaucratic procedures and, I think primarily through corporate procedures — Konstantin Noskov, Minister of Digital Development, Communications and Mass Media of the Russian Federation.

The first thing we encountered is a very long transaction cycle. It takes us more than 7 months on average to sign a contract with a pharmaceutical company: it's a lot for a start-up. <...> The second point is legislation. <...> There is a law that was recently adopted, the President signed it. <...> However, every time the Ministry of Health issues a new normative act that regulates the provision of such remote consultations. Every time it increasingly complicates the interaction between small players and more importantly between the big ones, the pharmaceutical companies — Dmitry Maznitsa, General Director, Founder, Qapsula.

Some players it takes a quarter just to sign a confidentiality agreement. <...> A quarter for a start-up – it’s like half a lifetime has already passed. The start-up is either already closed and money has run out, or the other way around: everything is fine, the star-up has already left the Russian Federation and now is a supplier in America or Germany — Dmitry Kalaev, , Director of Acceleration Programmes, Internet Initiative Development Fund .

Like any corporation, Bayer selects partners quite rigidly. We took our time signing the contract. <...> There was a lot of bureaucracy, plus the decision was made at different points, not only in Russia, but globally as well — Filipp Denisov, General Director, Founder, BrandQuad.

SOLUTIONS
Perfection of legislation in the PPP

The key is the PPP mechanism, so that telemedicine is not just a pilot project, but gets integrated into the health system for the benefit of patients — Irina Panarina, General Manager, Russia and Eurasia, AstraZeneca.

Given that we are an online platform, we work on the SaaS model, 44-FZ does not allow building long-term relations with the regions. In other words, those relationships are a year long, tops. <...> We are waiting for changes in the legislation — Roman Vlasov, General Director, Founder, Eldis.

We are very much looking forward to the adoption of this law. It is very important for us. We have 2-3 projects lined up that are ready to work using this model — Nikolai Kurmishev, Deputy Head of the Administration of the Governor of Novgorod Region.

Creating conditions for the implementation of start-ups within corporations

The first thing they have to do is create clean business zones where start-ups could get immersed. Inside them start-ups can try implementing their projects. <...> And third: probably, the customer should have an internal motivational model, very focused managers with some KPI on the success of this start-up — Shamil Shakirov, President, I-Teco.

The most important thing for us is to find a champion two or three levels below the vice-president who is interested. Their motivation is not that we just let them be without pilot project, but to see this project breathe, see their motivation connected with our project. Only after that everything runs, the pilot can turn from the semi-annual into a three-week — Vitaliy Sattarov, General Director, Founder, Ubic.

The material was prepared by the Russian news agency TASS