07/08/2015

YuriMilner:ThebillionairewhomadefortunebettingonFacebook,TwitterandWhatsAppTheEconomicTimes
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YuriMilner:Thebillionairewhomade
fortunebettingonFacebook,Twitter
andWhatsApp

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BySamidhaSharma,TNN|6Aug,2015,11.07AMIST
READMOREONYuriMilner|Xiaomi|WhatsApp|siliconvalley|Russia|Ola|Netscape

YuriMilner,whohasmadeafortuneby
makingbigbetsontechcompanieslikeFB,
TwitterandWhatsApp,inarareinteraction
revealedwhyhe'sbullishonIndia.Meetthe
Russianwhohaschosenresearchover
roulette
RussianbillionaireinvestorYuriMilnerhas
invitedselectIndianinvestors,
entrepreneursandscientistsforaprivate
screeninginBengaluruonThursdayofa
documentaryfilmaboutalienlife.The
objectiveappearstobetogathersupport
forhisambitious$100millionproject
BreakthroughListentodiscoverwhether
intelligentlifeexistsoutsideplanetEarth.

Pieceofplanewingcould
Scorchin
revealwhathappenedtoMH370 stocksa

YuriMilner,whohasmadeafortunebymakingbigbetsontech
companieslikeFB,TwitterandWhatsApp,inarareinteraction
revealedwhyhe'sbullishonIndia.

Thisisthe1stdirectproofthattheplane

Retailinvest

crashedintheocean,closingonechapter
inoneofthebiggestmysteriesinaviation
history.

portfoliosha
maynotbei
yet.

AngeranddisbelieffromMH370China
relativesoverdebris
MH370:Whatweknowandwhatwe
don't

ETSPECIAL: Lovevisualaspectofnews?Enjoy
thisexclusiveslideshowstreat!

"Julia(Milner'swife)andIwouldliketoinviteyouandaguestforadinnerandaprivate
screeningofthedocumentary"AreWeAlone?AlienPlanetsRevealed".Thefilmis
dedicatedtotheKeplerMissionTelescope,NASA'ssuccessfulandongoingprojectto
searchforEarthlikeplanetsintheMilkyWay,"themailtoinviteessays.RahulMehta,
partneratDSTGlobalbasedinDubai,haspersonallycalledupmanyVCsonMilner's
behalffortheThursdayevent,whichwillincludedinner.OnesourcetoldTOIthatthe
eventisexpectedtohave150guests.AnumberofVCinvestorstoldTOIthattheyhad
receivedinvites.
Milner,whorunsDSTGlobal,whichhasinvestedincompanieslikeFlipkartandOla,has
beenmeetingentrepreneursandinvestorsonhisthreedayvisittothecity.Onesource
toldTOIthatnotallhismeetingswithentrepreneursareaboutinvestment.On
Wednesday,hemethealthcarestartupPerfint,afirmthatisdevelopingrobotic
Home
Tech
Hardware Software Internet ITeS
technologiesforinvasivesurgeryproceduresforcancer.

Most
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Commented

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http://economictimes.indiatimes.com/tech/internet/yurimilnerthebillionairewhomadefortunebettingonfacebooktwitterandwhatsapp/articleshow/48

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07/08/2015

YuriMilner:ThebillionairewhomadefortunebettingonFacebook,TwitterandWhatsAppTheEconomicTimes

TrainfromSpain:Talgotorun
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MiraRajputon'JhalakDikhhla
JaaReloaded'?

BACKTOTOP

BengalurubasedhealthcarestartupPractoissettoannounceafundraiseonThursday
aroundinwhichMilnerisalsomakingapersonalinvestment.Itwasin2011whenYuri
Milner,thephysicistturnedtechinvestor,firstflewintoIndiasensingahugeopportunity
aroundinternetinacountrywitharapidlyrisingsmartphonetotingpopulation.Hemeta
clutchoffastgrowinginternetcompaniesonlinedirectoryplatformJustDial,amongothers
butnoneofthosediscussionsfructifiedintoinvestments.Ittookthe53yearoldanother
threeyearstolayhisfirstbetinthecountrywhenMilner'sfundDSTGlobal(whichstarted
lifeasDigitalSkyTechnologies)leda$210millionfinancingroundinecommercemajor
Flipkart.However,Milner'sascenttothepositionofoneofSiliconValley'smost
successfulinvestors,despitebeingarankoutsider,hasbeenfarquicker.
FROMRUSSIAWITHARISKAPPETITE

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ChinasaysTPPshouldbe
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Focusonlateralhiring
increasesaverageemployee
ageinInfosys,TCS,otherIT
firmsfreshersjoinstartups

HyundaiCretaReview:Why
youshouldbuythediesel
version

Commoncausesofabloated
belly

Thelastjourneyofformer
PresidentDrAPJAbdulKalam

Chinasetsupfirstunmanned
factoryallprocessesare
operatedbyrobots

10thingstoknowaboutthe
newMarutiSuzukiSCross
crossover

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07/08/2015

YuriMilner:ThebillionairewhomadefortunebettingonFacebook,TwitterandWhatsAppTheEconomicTimes
70crocodileheadsfoundina
freezerinAustralia

Whymorepeoplehavebeen
committingsuicideinChennai
thaninanyothermetroforthe
pastfouryears

Insurancetoeaseburdenof
liabilitiesfornewlyweds

26/11Mumbaiattack:Retired
Pakistaniofficialmakes7
admissionsthatnailPakistan

RBIstayspatonratestop20
ratesensitivestockstobuyfor
612months

Sixthingstoknowabout
Maharashtra'scloudseeding
project

Karnatakatobeflagshipfor
PMNarendraModi'sDigital
Indiadrivetorollout376
services

TheRussianbillionaire'sportfolioincludesfourcompaniesFacebook,Alibaba,JD.com
andXiaomiwhicharesaidtohavereturnedDSTprofitsofabilliondollarsormore
individually,injustoversixyearssinceMilner'snowlegendary$200millionpunton
Facebookin2009.

Howgrievanceredressalfor
insurancepolicieswork

Circlebackto2015:Milner'sbeliefinIndiaproducingseveralmultibilliondollarinternet
companieshasonlybecomestrongersincethatfirsttripfouryearsagowhenhecame
armedwithasuitcasefulloftuna.Likemanyforeigntravellersapprehensiveofthefiery
Indiancurry,Milner'swife,Julia,aformerfashionmodelandacontemporaryartist,
packedthecansonlytodiscoversomedelectableIndiancuisineontheirarrival.

I'vebeeninfatuatedwith
almosteveryactorIhave
workedwith:ShriyaSaran

Importantthingstoknowasaninsurance
policyholder

Recyclerstoldtouselocal
wasteasgovernmentquietly
slapsbanonimportof
electronic,PETscrap

AliaShahidstarrer
Shaandaar'steaserposter
released

FRIENDINGFACEBOOK
ThoughIndianowfiguresregularlyontheitineraryofthejetsetter,he'sneverbroughtthe
tunaback,hetellsmewhenwemeetattheRosewoodhotelonMenloPark'sSandHill

Fivereasonstobuyan
insurancepolicyonline

Road,theepicentreoftheventurecapitaluniverse(thisiswheretheyarefunding
disruptionsinthewayweliveandlove,commuteandcommunicate).Someofthese
investorswerehisbiggestdoubterswhentheRussianoutsiderfirststrucktheFacebook
deal.Hevaluedthesocialnetworkingsiteat$10billion,ahugepremiumcomparedto

Labourministrybatsfora
nationalpolicytohiredomestic
helperstosafeguardtheir

whatotherinvestorshadtooffer.DSThassinceclockedastupendous24timesreturnon
basicrights

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07/08/2015

YuriMilner:ThebillionairewhomadefortunebettingonFacebook,TwitterandWhatsAppTheEconomicTimes

the$1billionofcapitalthatitploughedacrossfiveyearsinFB.Recently,Marc
Andresseen,thefounderofNetscapewhonowrunsoneofthemostsoughtafterventure
fundsintheworldAndresseenHorowitz,wasquotedinFortunemagazineassayingthat
MilnerwascalledacrazyRussianwithdumbmoneyduringthetime.Asentimentechoed
bymanyintheinitialyearswhenthemanwiththedeeppocketswasseenashaving
boughthiswayintothebestsocialmediacompaniesintheValley.

Indiamaysoongetluminous
highwaystoenhancesafety,
saveenergy

Thingsaredifferentnow.Today,Milner,whosenetworthispeggedat$3.3billionby
Forbes,isknowntohavemanyclosefriendslikeAndresseeninSiliconValley'sclubby
andinsulatedtechworld.Hethrowslavishpartiesattendedbysuperstarfoundersathis
$100millionLosAltosHillsmansionaperfectplaceforentrepreneursfromacrossthe
worldtonetworkwiththeValley'swellheeled.

IndoJapandefenceties
'dangerous'forAsia:Chinese
expert

"Yuri'sadvantageatthetimewasthatheandhisteamhaddoneanincredibly
sophisticatedanalysis.Whatthey'dbasicallydoneiswatchthedevelopmentofconsumer
internetbusinessmodelssince2000outsideoftheUS,sotheyhadthesespreadsheets
thatwereliterallyacross40countries,"Andresseen,whohadaringsideseattoMilner's
meteoricriseashewasontheFacebookboard,hasbeenquotedassaying.
Thesesecretspreadsheetscombinedwithexhaustiveresearchandlongperiodsspent
ondiligenceofcompaniesareatthecoreofMilner'sinvestmenttheory.Somethingthat
madehimlooktoIndiaafterhavingstitchedtogetherbigticketdealsintheUSandChina.
CHASINGTHEINDIASTORY
EvenasMilnerwentbackafterhisvisitin2011,RahulMehta,aformerGoldmanSachs
bankerwhoisnowamanagingpartneratthefund,keptmeetingIndianstartupsoverthe
nexttwothreeyearsbeforeDSTzoomedinonFlipkart.Now,Milnerhasnotonlygrown
tolikeIndianfoodbuthasbulkeduphisIndiaportfolio.Afewmonthsafterinvestingin
Flipkart,inthemiddleof2014,hepersonallyputafewmilliondollarsintaxiaggregator
serviceOlawhichhetoppedupearlierthisyearwhenDSTleda$400millionroundinthe
cabstartup.ThiscatapultedOlaintothebigleague,valuingitat$2.5billion.
"FlipkartandOlaarefollowingapromisingtrajectory.Whenweinvestinacompany,
theyhavetogrow1020timesforthemtobecomereallysignificant.Ithinkthatafew
yearsago,SiliconValleydidnothaveanycompetitionfortalentandcapitalbutnow
AsianandEuropeancountriesarecomingupverystrongly.Youseebackward
repatriationoftalenttakingplacewhichiswhycapitalisfollowingtalentandopportunity,"
theathleticlookingMilner,dressedcasuallyinafullsleevedtshirt,tellsmeinan
unmistakableRussianaccent.
WhileMilner'sknackforhominginonmultibilliontechcompaniesiswellestablished,he
andhisteamarealsoadeptatspottingpromisingearlystagestartups.Thishelpsthem
buildrelationshipsearlyonwithcompanies.Whilesomeofthesework,othersremainas
experimentstypicalofearlystageinvesting.Likethebettheytookonthenow
controversialrealtyportalHousing.com,whichneverreceivedDST'sfollowonin
vestment.AndnotinvestinginUberhavingcomeinearlyasapersonalinvestor,which
Milnerhasadmittedwasamistakehehaslearntfrom.

Someofhisotherpersonalinvestments,whichrangefrom$15million,inIndiainclude
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YuriMilner:ThebillionairewhomadefortunebettingonFacebook,TwitterandWhatsAppTheEconomicTimes

hyperlocaldeliveryventureGrofers,healthcaretechstartupPracto,andSwiggy,afood
deliveryplatformbasedinBengaluru.Alloftheseareaimedtomapprogressofwhat,
accordingtoMilner,couldpotentiallybecomebigbusinessesandfutureDSTinvestment
targets.
Anothercriterionisthatbusinesseswhichareshortofa$500millionvaluationdonot
qualifyforinvestmentsfromthefund.Milnerisclearhedoesn'tleadearlystagerounds.
"Wedon'twanttocompetewithVCs.DSTcomesinatlaterstages,anichewe'vecarved
outforthefund,"hesays.
"Ourinvestmentsarebasedonthoroughresearchandbuildingrelationshipswith
companiesbeforetheybecomesignificant.Soitworksinthisorderwetapintoour
sources,buildrelationshipsandpreparespreadsheets.Ourstrategyisourbig
spreadsheet,basedonwhatweseearoundtheworld."Oncethesespreadsheetsare
preparedbyateamofexGoldmanSachsinvestmentbankers,largelybasedatDST's
headquartersinHongKong,thefocusshiftstofounders.
THEFOUNDERFRIENDLYFUND
SachinBansal,cofounder&CEOofFlipkart,saysMilnercomesacrossassomeonewho
investsonlyifhebelievesinthefounder'svisionofthecompany.Recountingavideo
conferencechatwithhimbeforetheDSTinvestment,Bansalsays,"Knowingverywell
thatI'dlovetohavehimasaninvestor,IaskedhimwhyFlipkartshouldgetDSTon
board.`Becausewebringluck,'respondedMilner."
Overayearagowhenthisroundgotdone,Flipkartwasvaluedataround$2billionits
currentvaluationis$15billion.Alltold,DSThaspumpedasmuchas$275millioninthe
ecommercefirmasitsvaluationhassoaredseventimes.
"Wedelveintoalotofnumbers,butIthinkthefounderisveryimportant.Itboilsdownto
thefounder,andhisorherambition.Inmanyways,it'spurepsychology.Iwasafounder
myself,andIthinksometimesit'shardtoappreciatehowdifficultitisandwhatitmeans
tohaveadailybattlewheretheworldisagainstyou."ThatexplainsDST'sfounder
friendlyterms,saysMilner.
AnexampleofthatisDST'sphilosophyofnottakingboardseatsinthecompaniesthat
theyinvestinthereisalmostnegligibleoperationalcontrolandnodaytoday
involvement.Milnerisalsoknownforcraftingwhat'scalledDSTtypedealsamodel
whereinthefundprovidesliquiditytofounders,employeesandearlyinvestorsthrougha
mixtransactionofprimaryandsecondarysaleofshares.Whilefoundershailthis
investmentformula,manycompetitorfundssaythesetermsgiveDSTaneasyaccessto
hotcompanies.
BhavishAgarwal,cofounder&CEOofOla,saysMilnerisaverypassiveinvestorwitha
deepunderstandingoftechandinternet."HisnetworkinSiliconValleyisagreatassetfor
foundersalongwithhisbigpicture,macroviewsonemergingtrendsintechnology.They
areverysupportiveoffastgrowingcompaniesbecausetheyunderstandturninginprofits
comeslater,it'saboutgainingscaleatthisstage,"hesays.
INSTITUTIONALIZINGASTARTUP
SixyearsintorunningDSTGlobalinitspresentavatar,Milnerhasinmanyways
reorderedthewaysoftechinvestingaroundtheworld,buthisfundisstillseenasaone
manshow.Hedisagrees."Whenpeoplesaythat,theycompareDSTtootherestablished
fundswhichhavebeenaroundfor25years.Thatisnotafaircomparison.Firstofall,DST
isateameffort.Second,DSTisastartupitisprobablythesameageasaFlipkartwhich
isalsodependentontheteamoffoundersjustlikeFacebookandevenGoogleare.The
institutionalizationofanorganizationtakestime.DST'sculturewascreatedbymeas
muchasbytheteam,"saysMilner.Thegoal:tocontinuebuildingtheinstitution.

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07/08/2015

YuriMilner:ThebillionairewhomadefortunebettingonFacebook,TwitterandWhatsAppTheEconomicTimes

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07/08/2015

YuriMilner:ThebillionairewhomadefortunebettingonFacebook,TwitterandWhatsAppTheEconomicTimes

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