DST Global - 2

Assets

• The total amount of fund (August, 2011) — $1 billion, about 80% was created by foreign investors from the USA, Europe, Asia and from the Middle East, and 20% — money of the Russian investors, including Milner and Usmanov.

• The volume of fund in March, 2011 was estimated at several hundred millions of dollars.

The service of Internet discounts Groupon became the first investment of DST Global fund — 2. In January, 2011 Groupon attracted $950 million from consortium of investors; their shares did not reveal. It is Milner and Usmanov's not first investment into Groupon, up to 8% of this service already belongs to Mail.ru Group and the first DST Global fund.

The European music service Spotify will become the second investment. DST Global — 2 buys 5% of this company for $50 million So all Spotify is estimated at $1 billion.

Investments

• ZocDoc
• Airbnb.com
• Groupon
• Spotify
• 360buy.com
• Twitter

History

In March, 2011 it became known that DST Global — 2 is organized recently, and its volume — hundreds of millions dollars. Unlike the first DST Global where the main part at Usmanov (according to Forbes — 75%), in the second fund the considerable share was contributed by the western investment funds, interlocutors of Vedomosti say^[1].

DST Global — 2 is engaged in involvement of foreign investors, managers of two Russian investment funds know. DST showed high activity in international market so the new fund can attract a wide range of investors, the managing partner of Almaz Capital fund Alexander Galitsky says. DST puts in the companies at a late stage of development, already with big assessment, but also with a high potential of growth. This model of investment is popular in Silicon Valley now, investors also speak only about it, Galitsky summarizes.

According to close to partners of DST Global — 2 persons, the service of Internet discounts Groupon became the first investment of fund. In January of this year Groupon attracted $950 million from consortium of investors; their shares did not reveal. It is Milner and Usmanov's not first investment into Groupon, up to 8% of this service already belongs to Mail.ru Group and the first DST Global fund.

The European music service Spotify — DST Global will become the second investment — 2 buys 5% of this company for $50 million So all Spotify is estimated at $1 billion.

The TechCrunch edition already reported that it of all Spotify will receive $100 million investments from consortium of investors — together with DST. According to the person, close to participants of the transaction, the deal is not closed, negotiations still go.

• In March, 2011 the American version of the Forbes magazine reported that the following transaction of Yury Milner will take place with the Chinese assets. It can be several transactions and all of them will pass through DST Global – 2, the person close to partners of fund told.

• On August 3, 2011 DST Global II announced that it invested $50 million in the New York startup^[1]. This company developed the application helping to find on the Internet of the doctor accepting the insurance policy which is available for the person. It is also possible to register in acceptance online: the application is synchronized with schedules of 5 million doctors of any profile. For patients service free, and is earned by it from a license fee which is listed by doctors — partners of ZocDoc in $250 a month. ZocDoc attracted the first $3 million in 2008 from the founder of Amazon Jeff Bezos and the founder of Salesforce.com Marc Benioff. Already then service was profitable.

ZocDoc is already the sixth investment of DST Global II.

DST Global II already invested more than 50% of the raised funds (it is collected by $1 mdrd), tells a source, close to investors of fund. Recently about $112 million were received by service of online lease of apartments Airbnb.com: DST Global II enclosed slightly less than a half, and the rest — Andreessen Horowitz.

In June, 2011 DST Global II invested $50 million in the European music service Spotify, and earlier as much — in service of Internet discounts Groupon. Totally about $200 million are invested in these projects. But DST invested $500 million more in the Chinese online retailer 360buy.com: a smaller part — from means of DST Global II, and the main — from the first DST Global fund (Usmanov was his main shareholder), the source, close to investors of DST Global II, says.

At last, on August 2, 2011 Twitter announced attraction of "considerable" investments from DST Global II. Twitter does not disclose transaction details, but it is known that the day before the service agreed to sell about 25 million shares at the price a little more than $16 apiece that makes about 5% of capital stock. Due to their sale the company was going to raise about $400 million additional money, CNN with reference to the consulting agency VC Experts which got access to documents of the company reports. These digits allow to say that the market value of Twitter is about $8 billion today.

According to AllThingsD, the actual volume of a round which heads DST is $800 million from which $400 million are going to be directed to share repurchase of securities at the staff of service and other investors.

"We made a lot of things for a short time. Today before us opportunities for expansion of a scope of Twitter thanks to the new round of investments headed by DST Global venture fund, with the assistance of some of our existing investors are open", reported in the official blog of Twitter.

"Twitter is one of the few companies which really changed the world. Amazing growth of Twitter is the certificate of that how important it becomes for a large number of people every day and why we could not miss chance to be the most part of its future", - the AllThingsD edition quotes Yury Milner.

Notes