Why i2istudy did not cooperate with IIDF

The publication The Secret of the Firm has published an interesting story of the entrepreneur Ilya Osipov, the founder of the i2istudy training web service. Ilya told “The Secret of the Company” about why he did not take government money and write down the Internet Initiatives Development Fund as partners.

"Megamind" gives the main theses of the monologue of the startup creator.

About service

We invented the i2istudy.com service, which works like a time bank. For example, you teach a foreigner a Russian language for 30 minutes, during which 30 minutes you will be taught English, or, for example, Spanish. The slogan of our service is “Stop paying tutors, thousands of people around the world are ready to teach their language for free.”

About state participation

At the stage of experimentation with the alpha version of the service, we went to the project support fund existing under the government of the Nizhny Novgorod region and tried to get funding. We were greeted literally with open arms, and the head of the foundation personally promised, I quote: “We will promote you to the top.” I was even a bit dumbfounded. We clearly did not expect such a reception from uncles in expensive suits, with cabinets and secretaries. We were given a “specialist” who undertook to prepare a business plan. As it turned out, they cannot give us money, but, winking playfully, they assured us that “we will receive money for you in RVC”.

About state management

I have a certain sense of bad development of events, and therefore I registered the rights to all texts that we gave to the fund in an independent copyright depositary. Negotiations began: the director of the foundation, the deputy director, a diligent employee and a lawyer on the part of the foundation, and a couple of people from us. And here, almost a year after the start of cooperation, I find out that they demand from us in an ultimatum to give 7% of the company for intermediary services. RVC, according to the draft agreement, received approximately 35% of the company. Moreover, we had to find another private investor who would co-invest and receive about 10% of the company.

About promises

The negotiations turned out to be long and difficult. I stood my ground: 7% for intermediary services is too much. In the end, amicably agreed that they would receive 3% of the company and 3% in cash from the amount raised, but only on condition that RVC finances us. The papers were signed - and then RVK refused us, despite all the “connections” of the foundation's employees.

About state money

Well, we think everything is money in our hands. We have stipulated in advance that we will not give a significant share in the company. And they asked only 3%. But at the same time, we had to change the charter of our company and introduce new norms. Without the consent of IIDF, we could not: appoint and change the general director, carry out major transactions, accept new shareholders. Thus, IIDF became a privileged member, without which no significant decision could be made.

And about the market

And even more, I was frightened by the need to coordinate changes in the constituent documents with the state fund, which had veto power on almost everything.

Now we have attracted a total of $ 300,000 private investment and continue to build the project. Investors are private individuals from Russia, Latvia and the USA where I currently live. For example - a professor at an American university. He personally helped me arrange a couple of scientific articles for publication in American scientific journals and became so interested in the project that not only he became a user, but also “hooked” his spouse and his friends.