Nobody knows how and when we’re going to enter this world. Nobody knows when we will leave it. That is why every moment of life should be treasured. Right here and right now…

Konstantin Y. Smolentsev
http://smolentsev.com

There is always a choice. Especially when you’re the one defining it – to go to the Balcony or to the Lavka (Store). Meaning, to try out the lunch offered at the «Balcony» restaurant of Ginza network on the Novinsky boulevard or to pop into «The Store. Farmer’s food», which is in the «Arma» factory. I chose the second one, due to the intriguing beginning :) And I’m glad. All the products are provided by the local farmers. The food is simple, homemade, and is prepared for unlimited amount of people and all the same for everyone. For example, we were given:
- Roulettes made of eggplant with cottage cheese-garlic filling (love it!)
- «Solyanka» with meat (although I didn’t find meat)
- Chicken with veggies (vegetables were exceptional)
- Rose hip «morse» (nutritious and delicious!)
- Goat cheese plate (four types of homemade cheese)
- Veggie plate (fresh beet, carrots, turnips,… I liked it!)
- Grey and white bread (although not homemade, it was very fresh)
- Tea (barely had any space for it).
The atmosphere… very warm, farmer like, ironic, honest, humane… And even sitting at a long bench for everyone like in a village hut does not feel intimidating when being with unknown people, on contrary, I felt relaxed and comforted. Received positive energy. To the place – sincere thank you and good luck!

It doesn’t matter where you live. What matters is how you enjoy life.

Konstantin Y. Smolentsev
http://smolentsev.com

Different feelings and thoughts occur when you drive through Russia, far from major cities. The Ural region. It was a prosperous region at the end of the 19^th, beginning 20^th centuries. Survived remnants of powerful factories and large public buildings, huts with the first brick floor, decent-looking by today's standards. Destroyed, with covered frescoes on the walls and inscriptions such as Kisa + Osya = 19 ... on the Domes, but majestic in their ancient truth Orthodox churches. Looking at those little remaining islands of history, you want to put a sign: "Memory for humanity». But beside those there are rotten huts, overgrown with weeds and parks in front of Soviet institutions, with obligatory statues of Lenin and streets titled in his honor. Here, too, I want to put a sign: "Repentance for humanity."

Konstantin Y. Smolentsev
http://smolentsev.com

A good book is like good wine. You want to drink fast and more. But the true pleasure is achieved only when you slowly sip on it.

Konstantin Y. Smolentsev
http://smolentsev.com

I am writing a business novel, idea of which has been occupying my mind for a while. I wanted to make it not only entertaining and interesting, but also useful. Useful for a wide range of readers, who are interested in bright personalities, ability to «bend the world for themselves», secrets of successful career building and personal life. Useful for business people – the self-scarifying propulsions of progress. The majority of what I have gathered through my business experience is being implemented in limited amounts into the novel’s plot. I hope that my experience in business, experiences of my colleagues, partners, clients, and of course respectable competitors written about in an artistic form will be in demand among entrepreneurs. Feelings and emotions of the main characters in their personal lives correlated with their actions and motives in business seem interesting to me. Not a small portion of life connected with entrepreneurship largely defines personal life. Is it good? Is it right? Everyone has to make a decision. And each and every one has to build his/her life. But life, divided in two parts – personal and business, often conflicting destinies- has to be created as a harmonized whole, otherwise it won’t be happy… The main character of the novel, a thinking entrepreneur, re-thought his past at a ripe age and completely changed his life. I am convinced, dear friends, that we can all do it, because in the modern world we all have endless opportunities. I will gradually introduce you with some drafts of the novel. I am thankful in advance for your critical, but kind comments.

Truly yours,
Konstantin Y. Smolentsev
http://smolentsev.com

To sell something useless

The hero of the legendary "Prostakvashino" Uncle Fyodor had said: "To sell something useless, you must first buy something useless". Obviously, for now to sell and buy is all that investors can do for innovative companies. And the profit went to the original shareholders, who got rid of the IPO of part of the shares.

In the summer of 2010 at the Moscow Interbank Currency Exchange (MICEX) one after another two innovative companies were placed – «DIOD» and «Russian Navigation Technologies» (RNT). According to Dionis Gordin, a board member and a managing director of investment activities of the Russian Corporation of Nanotechnologies (SC «Rusnano "), by the end of the year a dozen more innovative companies will enter MICEX. During September-October IPO of foreign organizations are expected on the Russian market.

Recently the government has been putting a lot of effort in trying to attract investors to innovative projects, and not only Russian and not only through the stock exchange. For example, there is interest in foreign venture investors. On May 25^th the President Dmitri Medvedev met with heads of American funds. During the meeting the President said that Russia is lacking venture capital. According to him, currently there are 20 active venture funds in Russia with a total capital volume of approximately $2 billion, which in comparison to USA and other countries is extremely negligible. However, foreign investors hardly showed any interest.

Market for innovators

Talks about creating «Russian NASDAQ» have been going for quite some time now. In January 2007 a trading platform RTS START has been launched, which is designed for small and medium capital companies. Securities of issuers included in RTS START segment are simultaneously allowed to be traded on RTS. Currently RTS START has 5 securities: shares of the paper mill «Kommunar», Kosogor metallurgy factory, «Elektrozinc» factory, Neftekamskiy automobile factory, and «SiGMA» company.

In July 2009 a Market of Innovations and Investment (MII) has been created on MICEX. The main goal of this joint with «Rusnano» project has become the creation of a mechanism to attract funds to high-tech companies – from financing innovative business on early stages to its release to a public offering. The first IPO in the new sector was held in late 2009 – then the Institute of Human Stem Cells (IHSC) entered the stock market. In June 2010 «Diod» has released its shares on the stock market, and in July of the same year – RNT.

However, placement of a small or medium capital company on the MICEX could have been done in 2007 when the Sector of Innovative and Growing Companies (IGC) was created. The First issuer of the IGC Sector has become a closed-end investment fund of particularly risky (venture) investments «FINAM – Information Technologies» (FINAM-IT). As well, through this sector three more companies entered the stock exchange: IT company «Armada», Television channel «O2TV», and NEKK, a producer of chemicals. By the way, in July 2010 «Armad» has transferred its shares from IGC Sector to the main list of securities in MICEX. According to the General Director of the SE MICEX Konstantin Korishchenko, it signifies «the growth of corporate management, as well as achieving maturity of the company’s business».

Ready for the stock exchange?

But is it too soon for Russian innovative companies to enter a stock exchange? Usually there is a phase of venture investing before IPO. Among those innovative companies that have already entered the stock exchange through the MII MICEX platform, only RNT has went through this path. Many experts believe that currently Russia has almost no projects ready to enter the stock exchange. It doesn’t mean that there are no good innovative companies. The thing is that its’ shareholders do not want to allow anyone else to manage them. The same companies that, on the contrary, are willing to sell their shares, as a rule, don’t have a high managerial level and perspective business ideas.

Konstantin Smolentsev, Chairman of the Board of Directors, IC «SMOLENTSEV & Partners» has told Bankir.Ru that relying on the work experience with Russian companies of innovative business and analysis of the world experience, it is too soon to enter IPO for many Russian innovators. Main factors are the following: lack of experience of corporate management, lack of a history of public borrowing, low management level, poorly reasoned financial prognoses, and several other serious reasons.

Venture financing helps to solve these problems, even perhaps, not one round, but throughout 3-5 years. A breakdown of a project into stages in terms of attracting funding allow for a business more intensely, simultaneously building up experience. The market value of a business with such path to IPO is much higher, which makes IPO more attractive for large players on the financial market.

…

We don’t need experience

According to Konstnatin Smolentsev market of shares of innovative companies is quite risky by definition. It is especially true for Russia where this segment does not have fully formed parameters that allow you to look confidently into their future. These are highly risky assets. Therefore, minority shareholders have a chance to make money on these shares and having the risk of losing. No one can give a reliable forecast at the time of placement, as then, during operations on the secondary market. The volume is too small of the mentioned segment of shares, and market threats and restrictions are too significant.

But for venture funds innovative companies are attractive assets. Many, especially foreign players have experience working with such organizations, therefore, there is an opportunity to share that experience. When venture investing, a business does not get many minority «passive» shareholders, but one of a small group of qualifies partners, who are interested and are actively influencing the formation of a successful business.

That is why for the minority shareholders, and for large investors, as well as for the stock market itself it is better to initially develop a business with the help of «angel» or venture investments, and only then enter IPO. Then there are more chances to earn profit for the minority shareholders, and most importantly, it is likely to continue in the long term.

…

To make conclusions for the companies placed for business, even preliminary, is too early. Any qualitative assessment can be carried out only in long-term, when there is understandable efficiency of management actions, successful realization of the claimed business-strategy, and investment program of each concrete company. According to Andrei Sapunov, currently the following is obvious: placed issuers on the stock exchange have become more competitive. A greater transparency of business significantly increases appeal of public companies for partners and contractors in comparison to non-public competitors. Given that RNT, DIOD, and IHSC are oriented on strengthening capacity of international presence, openness of their business would be a powerful driver of growth of operational, and consequently, financial performance in the long term.

Tatyana Lanshina, Bankir.Ru

09/06/2010

http://bankir.ru/publication/article/6114321

Konstantin Y. Smolentsev
http://smolentsev.com

The International rating agency Fitch Ratings has affirmed the long term Issuer Default Rating of the Russian Federation at the level of BBB and has changed the prognosis from «stable» to «positive», according to the agency.

It has also been noted that the weakest moments for sovereignty ratings of Russia are low quality management, lacks in the institutional sphere, corruption, lack of a business climate, slowing down investments, diversification and growth, as well as dependence on prices for raw goods (and, as a consequence, on global economy) and history of high and relatively volatile inflation.

Possibly I’m not the only one trying to attract attention of the heads of Russian business, several political parties, well, and the country itself to the weak sides of the Russian economy. And lacks in an institutional sphere, and corruption are at least talked about constantly, whereas other key aspects such as low quality management and lacks in business climate are not paid attention to. Is the misconception so great that these aspects seem less important? Or that they can fix themselves? Or is there a deeper reason?? Either way, management of the Russian government and business will stay on the same level as today, until formation of the business climate will be consciously formed, Russia won’t have high ratings, venture and other capitals won’t come to the country. I often have to deal with heads of foreign businesses and venture funds, in particular. The most frequently heard question/argument is for careful relations with Russia – the level of management qualification of the heads is too low, and the risks of corporate management are too big!

What and when are we going to do for these questions not to appear?

And what should happen to come to understand the importance of these factors for the future of Russia?

Konstantin Y. Smolentsev
http://smolentsev.com

Wide expansions of Siberia… It is a region of courageous people, magnificent taiga, endless rivers and lakes, region with its rich and in most tragic history.

By destiny sometime ago I have ended up in Gornopravdinsk village. And one kind man has acquainted me with the priest of a local Orthodox church – p. Aleksander. I, in turn, have acquainted Priest Aleksandr with my colleague. For the little time that Aleksandr has been the Priest in Gornopravdinsk village a lot of things have positively changed in the life of the village. The main thing being spirituality.

Only the Ascension Temple of God is still all ruins. And there is no more churches within tens and hundreds of taiga kilometers.

According to archives, in 1755 in the Filinskoe village (Gornopravdinsk) a temple was built and blessed in honor of God’s ascension. In 1835 the old building was torn down and the parishioners built a stone one floored church. In February of 1933 the church was closed down. Until November 29^th, 2009 the temple was used for a bakery.

Christ Resurrection Cathedral has been recognized as an architectural monument.

In September 1989, a small community of the faithful parishioners is reviving. On June 13, 2008, according to the decision of the Parish Council, for the position Rector of the Christ Resurrection Cathedral priest Aleksander Menzelintsev was appointed.

We decided to figure out how to help the reconstruction. On our little charity, it can’t be done. But if everyone who sympathizes to spiritual re-birth of Siberia will contribute, then there would be a great temple. For centuries churches have been built this way in Russia. That is why we decided to create a website http://www.voznesenie-church.ru/, which can guide you through the history of the parish, learn about its current life, communicate with the Priest, and if you wish – donate for the temple’s reconstruction. Because “those who give, those are to receive”.

We truly hope that the destiny of a Siberian Ascension Temple of God will not leave you indifferent!

Konstantin Y. Smolentsev

Gregory Popov

In annotations and advertisements of Ayn Rand’s (Alisa Rosenbaum) bestseller «Atlas Shrugged» there was much said about the importance of this work. I believe that the novel is much deeper than it was claimed to be. It is a novel about the human kind and humanity. It’s a philosophical novel. About family. About understanding. About a man and a woman. About sex. It’s a novel about a world view. A novel about a position in this world, about the everyday problem of choice. A novel important for a thinking person of any age and very important for the formation of a young personality. A novel about the world of Alisa Rand. A novel about my world and the world of every person. Without exceptions.

Konstantin Y. Smolentsev
http://smolentsev.com/

Everything depends on people. Walking through the city and looking at clean streets and flowering lawns, it is hard to believe that just several years ago it was a place of ruins. Before flying in, I was looking at photos of destroyed Grozny on Ramzan Kadyrov’s blog. Two different worlds – a world of dead stones and a world of the modern city. Respect.

On the route back to Moscow the plane landed in the International Airport of Voronezh due to smog. I don’t mean to offend Voronezh people. But that inconvenient even for short term waiting place is hard to call not even International, but generally a modern airport.

Two cities. Two pasts. Two futures. Everything depends on people.

Konstantin Y. Smolentsev
http://smolentsev.com/

Saturday is a day of spiritual enrichment. My volunteer enrichment happened in the Moscow museum of modern art at the exhibition called «Kamasutra Spoon». An announcement by the Administration immediately intrigued me: «Dear visitors, viewing of the exhibition «Kamasutra Spoon" is not recommended to persons under 16 years old, and persons with unstable mentality». And for the spiritual enrichment to occur correctly, the announcement in particularly warned: «Infinite variety of erotic experience causes endless variety of visual expression of the past. The panorama built in the «Kamasutra Spoon» project does not intent to tickles nerves of some lonely libertine, offering the latest perversions of young experimenters. There is a difference between perceiving sex as a physical-sensor experience and sex as a means to transfer cultural and social information». As I have what to tickle my nerves with in life even without the exhibition, and I don’t associate myself with the «lonely libertine», I was left with receiving «cultural and social information». Information about the transformation of a modern world of art I did get. Now I’m transferring my thoughts to you from «the scene of the crime»: several people have created large, three-dimensional formats to express their turbulent emotions. Because all the viewers were older than 16, the second half of the Administration’s announcement was addressed to them. Professional PR agents and organizers monetized this product. And several «lovers of enrichment on a weekend», including myself – materially have supported the project, or, expressing in the modern terms of «transferring cultural and social information» – «I got screwed». Although in all fairness there were a couple of interesting photographs of a dancer and videos of a naked female tango dancer in the hallway. You have to find positive in everything! And one more thing. Osya Bender, as a talented experimenter and an artist, simply out-did his epoch. His undying masterpiece «Seeder» would be, undoubtedly, a social-erotic face of the entire exhibition! :)

You would think it doesn’t matter what part of the globe you’re at. As long as you’re well fed and life is easy. But things aren’t so simple. Entering (walking into, flying into, swimming into :)) some civilized island, right away you feel the special atmosphere of that place. Sometimes neutral. Sometimes friendly. Sometimes hostile. And most of the time you cannot figure out if it is caused by the people, buildings or something intangible. But sometimes you feel like you are visiting your friends – you’re always welcome. I feel that way in Saint-Petersburg and Prague. It is rare when you feel like you came home, where everything is familiar, warm and cozy. I feel that way in Paris, San Francisco, Vancouver. And sometimes you get this feeling that a huge or important part of your past life is connected to this place – Paris, once again, Naples…

I haven’t swam this year yet. I was busy with work, business trips. And here I am on June 12^th, near the ocean. In the morning – to the beach. The sky is dark, the wind is fast, storm has come upon. I didn’t risk it. So, I thought, it all leads for me to open the season on the 13^th. My favorite number! But in the morning I had work, had to take care of an urgent project. M-hm, – I thought again, – the 13^th didn’t work, weird… After lunch our friends took us to show the beauty of British Columbia. The nature is simply out of ordinary, fantastic! And as we were coming back to Vancouver, they offered to go for a swim. The 13^th did work! Although, the water was only 12-14 degrees (or 13? :)), but the swimming season is open! And I opened it in the ocean!!!

Konstantin Y. Smolentsev
http://smolentsev.com

Konstantin Y. Smolentsev Dear Vladislav! I work a lot with venture investors: European and North American, especially Canadian funds. How do you see formation of a competitive investment appeal of Russia? Or without it as part of a project, even led by a person with "great managerial experience, a good reputation in business circles, and credibility in the government" can solve such an ambitious task of the state as the IFC, which in the words of our President, "besides, can become a center for financial innovation»? Simply put, what spheres we can and should be more competitive in the world financial market? And how can it be achieved realistically?

Vladislav Inozemtsev In terms of innovations we cannot be appealing today on any ground. Our innovative work is extremely fragmented. I know a lot of people who over the past years have been creatively and selflessly involved in developing innovations. Russia has a lot of original technologies. The problem is that they are very difficult to commercialize and almost impossible to implement, because the volume of existing monopolies, on one side, and the volume within the private sector – from the other, – is devastating. Most processes are tied not only to the technological element, but also an element of interest of managers, suppliers, contractors, workers and consumers. The scale of corruption here is comparable to the scale of corruption in state government. Maybe even more. As an innovative economy, we can not be of interest to the West in the next 10-15 years. Of course, you can create some pockets of innovation, but it's not economics. Investment appeal of «Skolkovo», even if it is big, is not Russia's investment appeal. And if we want to have serious competitive advantages, then it can be only one thing – diversification of resources on the local market. We have to, finally, admit that our attempts to level prices with the world and achieve energy efficiency did not give any results. Today our energy efficiency is higher than in late Soviet by 12-13%, although in Poland, for example, more than twice as much. Even with higher prices on our oil, gas and electricity on the local market we will not see serious market mechanism of energy saving. I think it would be more correct to go the other way. I do not know how this can be done technically – though mass devaluation, a sharp change in tariff policy or government subsidies, but it is necessary to make resources on the domestic market very cheap. It is necessary because then Western investors can come to us, having here cheap resources like in China and other countries to manufacture the final product.

http://www.kommersant.ru/doc.aspx?DocsID=1407997

Konstantin Y. Smolentsev
http://smolentsev.com

On Saturdays our corporation traditionally analyzes our position in the information space, including in the World Wide Web – Internet.

The results of the analysis are very important for us. Firstly, position of our corporation in the external environment, dynamics of strengthened attention to our services. Secondly, analysis of the successes of our clients – that too shows efficiency of our work, reaction of the market to the quality of our services. Thirdly, we grade work of the competitors of our clients – that is also a reason to think and structure our recommendations. Victory in informational battles are no less important than in traditional ones.

Sometimes you see useless black PR. At first glance useless. Sometimes it is easy to explain. It is the easiest way to get attention via anonymous and work the contract for some person, without causing too much attention, including famous firms into a company. Then again there can be another variant. Someone feels bad when others are doing well. One of those variants we saw today. Another slander. Author was as per usual, «anonymous». But in the company where we appeared was satisfying, our neighbors in the list are Business Angel Fund AddVenture, famous Scandinavian venture fund CapMan, venture fund Almaz Capital Partners and other major players of Russian and world investment markets. For us it is also a reason to optimistically look at ourselves, we are ranked high, equal to leaders. You can’t just be a plebe in a royal company. Plebes can only squeak something bad from behind the bushes in the dark and run away fast. What can you do, Internet is an open space, it is a part of human culture. Culture, where there is good and bad, bright and dark…

Konstantin Y. Smolentsev
http://smolentsev.com

"He places the fool in high positions often,
But the nobles dwell in low estate.
I have seen slaves upon horses,
And princes, like slaves, walking on the ground.
And moreover I saw under the sun,
in the place of judgment,
that wickedness was there;
and the place of righteousness,
that iniquity was there.
I said in mine heart, God shall
judge the righteous and the wicked:
for there is a time there
for every purpose and for every work.
And I said: all is vanity. " (Ecclesiastes)

Konstantin Y. Smolentsev
http://smolentsev.com

«One of the last meetings within the G20 Summit was carried out without the heads of Germany and Britain. Angela Merkel and David Cameron have left the meeting to watch the second half of the World Cup 2010 match between Germany and England».

The British leader said that they both «glued themselves to the screen» while watching the game. (Participants of the G20 promised to decrease deficit by two, http://www.bbc.co.uk/russian/international/2010/06/100627_g20_summit_football.shtml)

Simple and understandable priorities of the authorities!

«Recently, American scientists have published facts about researches made on a human brain. They found a segment that is «responsible» for a religion, which activates only at a time of prayers. In other words, that is how we can connect to Space of to God, which explains the God and Space concept of life, in detail explained by many east philosophies».

(Aleksandr Usanin, Research Paper «Change of relations with the world as a method to solve the ecological problems of the modern society» for the First International Ecology Conference «A human and the nature. Problems of ecology in southern Russia». Anapa,May 14-17, 2007, http://usanin.com/?page_id=159).

:)

Konstantin Y. Smolentsev
http://smolentsev.com