Forbes: Code Paul Durova

26-year-old programmer lured into their social network of half the country. To move forward with the luggage?

In the early autumn morning in 2007, Paul Durov young programmers and Oleg Andreev pounded on the keys, wanting to quickly launch an application that allowed users to social network "VKontakte" virtual paint spray paint. The network, which they opened a year ago, has grown to hundreds of thousands of users per month. Recalls Andreev, the site is constantly attacked by hackers, after sleepless nights, eyes closing, but the creator of "VKontakte" Paul Durov wanted to assess people's reactions to the application "Graffiti." When the first pictures, programmers have fallen asleep by the monitors - the office they did not exist.

Three years later the company a 26-year Durova moved into the former headquarters of X5 Retail Group in Nevsky Prospekt opposite the Kazan Cathedral, the home of "Singer" Valkyries crowned with bronze and glass globe. Here, write code 24 A student and gold medalist, who serve the largest Russian-speaking social network with hundreds of millions of users. "VKontakte" earns about $ 15 million a month, and estimates of its cost closer to $ 2 billion

Duras did not like appearing in public, and occasionally puts their photos (look past the camera) and almost never talks to the press. Why, if you can appeal directly to the 2,712,065 readers of his blog?

Rights holders hate Durova for being "VKontakte" allows to share movies and songs, and game developers are idolized him, as it gives them access to the audience.

"For me, money is completely virtual ones, which is meaningless to discuss in isolation from the real important things. To participate in this race to prove something to someone, it seems objectively futile endeavor, although it is not the worst sport "- so began an interview with Forbes man, whose name stands at the bottom of each page of social networks.

Many programmers dream of running a startup, to convene there classmates and subjugate half Runet, but it turned out it just Durova. How?

The son of a professor of philology began to walk to school in Turin, where his father worked for several years. Returning to St. Petersburg, he studied in a regular school, but not for long - too often, teachers explained that they are incompetent. But in the experimental classes Academic Gymnasium, such as Durov, gained an entire gang. Due to problems with eyesight, he was sitting at the desk first, often alone, received high marks and had a reputation for erudite - but overshadowed by the star class, the winners of competitions. The elder brother Nicholas, a talented scientist, also won competitions in mathematics and computer science.

Duras has learned to program and changed the screensaver to start all school computers with Windows 95 logo on the photo with the signature science teacher «Must die». The teacher repeatedly deprived him of access to computers, but each time Durov broken passwords. "Since it is always necessary to communicate with suspicion, it was not clear, frankly, he says, or making fun of you" - says his classmate Alex Dievskaya.

After prom Durova asked who he sees himself in the future. He joked: "Internet totem."

But when the site philology student SPSU Durov.com flowed abstracts from all over the university, the jokes stopped. Electronic Library was not the main purpose of Durova - he wanted to unite the students studying in different parts of the city, giving them a platform to exchange ideas and opinions. Leaving Durov.com exist in a free mode, he opened the forum of the University, and began to unwind. Dividing the portal site of faculties, he initiated a verbal battle, often under different nicknames arguing with himself, and in organized competitions offline design and beauty.

Soon Durov applied for a scholarship of Vladimir Potanin, and participated in role-playing game, in which the honors of choosing those who are endowed with leadership qualities. "Paul said quietly, but for some reason, stop talking and start listening - says Yury Lifshits, winner of the International Mathematical Olympiads, and later worked at Yahoo. - They were all bright, but even in simple situations, such as the choice of venue "potanintsev," his opinion was one of the key. " Durov received a scholarship for three consecutive years.

Meanwhile, the forum is going down 3,000 people a day, and a resource overgrown social functions. Members were blogs, raise or lower the rating of each other. Duras cautious attitude toward monetization, avoiding the appearance of banners are not related to education. Go to last the course, he knew that he wanted to do their projects, rather than translating from English (as was listed in the diploma).

"When I looked at the people who ride every day routine work in the office, I could not imagine such a scenario in my life, - says Pavel Durov in an interview with Forbes. - Management of Internet projects, the organization of university activities accustomed to independence and the idea that I have no immediate superiors. " The diploma he never picked up, not wanting to face once again with the bureaucracy.

Among other ideas Durov pondered social network where people act under real names. And at this point in his mailbox a letter from the fallen man, with whom he had lost touch for seven years ago.

Vyacheslav Mirilashvili read an article in "Business Petersburg" and did not believe his eyes - his classmate Durova was praised as the founder of St. Petersburg State University forum. Vyacheslav attended Tufts University in the U.S. and saw how social networks are gaining popularity, especially Facebook. Mirilashvili found the address of DurovaVyacheslav - recalls Durov. - Because we could never meet again. "

They start a little later, their chances of success would be significantly lower. In the spring of 2006 the number of users in the Russian social networks grew rapidly, but still counted in thousands. Even the biggest - "Classmates" - nedotyagivaet up to a million users. Globally, Facebook sat 10 times more people, but to the capitalization of a billion dollars, of which Sean Parker in the movie "Social Network" seduce Mark Zuckerberg, was far away.

Their money to start a social network Vyacheslav was not found. He borrowed them from a company of his father, Mikhail Mirilashvili - the owner of "Conti" (St. Petersburg's largest casino) and the group "Petromir" (shopping centers). Mirilashvili Sr. was one of the most famous St. Petersburg businessmen of the 1990s, many called him a good friend of Vladimir Putin. In 2001, Mikhail Mirilashvili was arrested on charges of kidnapping, kidnapped his father, and at the time when Paul and Vyacheslav needed money, was serving a sentence.

Friends set up a company in which the control remained with Mirilashvili Jr., and minority shareholders were his friend Lev Leviev and Durov. However, the latter left a package of voting shares sufficient to cancel unwanted solutions. The fact that the brand can be associated with the name of Mirilashvili Sr., Durova was not embarrassed.

He was in the hands of all that is necessary - understanding the audience base of loyal visitors to the forum, programming experience and persistence. He began to adapt the idea of ​​Facebook, and add their own functions. As Mark Zuckerberg, Durov wanted to attract more users and give them convenient services, and the monetization is not worried.

"Please, register on this site! You really help me! "- Begged each other's students of Minsk universities. Within a few days of November an unknown network "VKontakte" attracted more than 2000 users. The reason - the competition, which came up with Paul Durov. To the one who invited the most friends, gave player iPod.

During the first year "VKontakte" received 3 million users. People are attracted by the opportunity to search friends, and mark them in photo albums, make appointments, download music and videos. "Paul, in contrast to most programmers understand what he wants from life student and the student and how it looks in the design, - says Oleg Andreev. - He could see through the eyes of a man who has an old browser and slow Internet. "

Durova was able to collect a complete database of Russian universities and faculties to provide search by year of release. Due to the sharp rise in the number of users the headache became overloaded servers. It was a matter of life and death - permanent crash triggered an outflow of users of Friendster, the second largest social network of the world at that time. Durova was lucky - his brother Nicholas, a doctoral korpevshy in the Mathematics Institute of the Max Planck Society, managed to find time to optimize the load on the servers.

But the main problem was that "VKontakte" required millions and millions of dollars - to purchase new servers to support and recruitment. Shareholders do not have their own funds, would take no more, and yet investors from Moscow he received offers to sell the business. "The temptation of all to sell for a fortune large enough - says the founder of" Schoolmates "Albert Popkov. - This is a matter of faith, how far things go. "

Faith Durova was strong. Soon "VKontakte" knocked Fund DST. "Our project is fundamentally different from other start-ups since grown exponentially, with no advertising - says Durov. - Yuri Milner offered more than the others and asked for less. At the same time he himself took the initiative and came to us. "

Founder of DST, a partner oligarch Alisher Usmanov, and the most famous Russian Internet investor Yuri Milner is known for the ability to please the owner of a promising business idea. Another feature of this venture capitalist - non-interference in the affairs of the company, where he has invested (as long as things go well). "Milner always admired Durov, said he was a genius and so on - says a former top manager of the company, which invested in the DST. - It was only later he became the darling of Zuckerberg, and then reigned Durov. " One way or another party to bargain, and DST bought a 24.99% "VKontakte" for $ 16.3 million

Gradually it became clear that it is impossible to increase spending on an expanding video and photo hosting and thus delay the start to generate income. Durova had to compromise. "VKontakte" continues to refrain from advertising, but allowed to increase personal rating with the help of paid SMS. Later they began to sell virtual currency for real ruble. The public also provided service "gifts" - to pay and went to a virtual postcard to a friend or something.

But the revenues of several million dollars is not allowed to pay back the site and in the summer of 2008 concluded Durov first advertising contract. Six months later he began to take a "tax" from the creators of social games, which earned the audience "VKontakte". Now, it included not only students of elite universities.

"It's 30 million criminals and accomplices are known! - Scolded users "VKontakte" director production company "Amedia" Alexander Akopov. - Everyone can not be put in jail, but 10 000 - you can! "Words holder immediately flew to blogs and the media. Akopov got against Durova on for what he actually has the largest repository of pirated content in Russia. Approximately half of the video shows in runet have to "VKontakte," Forbes told a few owners. And this is a competitive advantage online Durova.

The first went to court Russian State TV and Radio. RTR demanded on several internet sites belonging to remove her content. Agreed to everything except the "VKontakte", and eventually lost the TV people Durova. Nevertheless, the scandals continued.

"We came with the TV series ABC television on which we have exclusive rights to the Russian territory - says Internet entrepreneur, who requested anonymity. - They looked at the "VKontakte", and then 65,000 of our videos. And we have it all removed. And four days later another 30,000 came ... "This is the main claim of copyright holders - a service like YouTube and Dailymotion introduced a system of semi-automatic removal of the video, and" VKontakte "is done by hand.

Duras considered freedom of information an organic feature of Internet, but to appease the owners, he again had to make a deal with their own convictions. "VKontakte" promised to develop better filters, and meanwhile, offered to open the factories and promote the content of their pages. First under the "Corporation standouts" bent 20 Century Fox, but the rest do not hurry to follow it. For example, providers in the group Virgin Media, have closed their customers access to social networks.

On placement of shares on foreign exchanges with this approach, the content can not imagine. "It is unlikely that IPO« VKontakte "may not resolve all questions about pirated content with copyright holders. I do not want to use the word "impossible", but this is too serious a matter, "- said the representative of one of the Forbes international banks involved in IPO« Yandex ».

It seems that this was one of the reasons for the campaign to purge the ranks, which Durov intensified in 2010. Log in to the network can now be by invitation only friend, who shall specify the mobile phone novice. And by 2012, "VKontakte" promises, did run a "system of preventing the spread of dangerous content," including pornography.

Cleaning does not reduce the flow of users. "VKontakte" ahead of Russian-speaking segment of Facebook, «Classmates" and "My World" by the number of users and traffic. More than half of the proceeds received from the network advertising - Durov refused banners, betting on contextual ads. "Strategy" VKontakte "is not squeezing ARPU (revenue per user. - Forbes), and increasing user base," - he said.

But the opportunities for growth customer base "VKontakte" is not endless. If Facebook in English may be increased by billions of users, Durov chose Russian-speaking audience is already three-quarters (to 170 million speakers in Russian has 135 million accounts). What will come up with "a gang of Honor"?

In Durova has an answer to this: "My dream - to turn the national inferiority complex, proving that the products from Russia can be massively in demand all over the world."

Judging by public statements of top managers in the near future "VKontakte" begins its expansion into the European market. As the most likely object of attack "VKontakte" mentioned Germany, where the local social networks crushed Facebook. Example Orkut, winning all in Brazil, shows that Facebook can be circumvented by the ingenuity and understanding of the needs of residents of the country.

If you have a battle-worthy company programmers, why not take the risk? "It may be that to achieve our goal of service" VKontakte "will need to change beyond recognition and our team will have to do to create a new product. But sooner or later it will be done "- convinced Durov.

Sounds nice, but does see the future "VKontakte" other its shareholders?

When Dmitry Grishin, CEO of Mail.ru Group (now known as the former fund DST), announced in the February interview with Forbes, which is considering the possibility to combine "VKontakte" with "My World" and "Classmates", the market was shocked by this news. Of course, many people knew about the long-standing dream of the owners of Mail.ru Group, but few believed that it will come true. "Strategically for us to get the correct control of the social network [" VKontakte "], and even better to buy 100%", - said Grishin.

Duras immediately okorotil it in his blog, saying that even a respected shareholder of catching up with such statements Mail.ru Group share price on the London Stock Exchange, but of no merger of the question. A source close to shareholders "VKontakte", confirmed that much sense to pour "VKontakte" with other social networks do not, because it is a large non-public company that can "ottyuningovat" for an IPO and sell shares more expensive. "Durov - this is really key man, - said Leonid Boguslavsky, head of the Foundation Board of Directors of Ru-Net. - The company is very much dependent on Paul, and if he leaves, she may have problems. "

To verify whether this is enough to look into the house with the Valkyries, and Singer globe. Duras has surrounded himself with like-minded people. Commercial services headquarters there - some programmers who are prohibited from drinking, smoking and improve each other's voice. Key positions held by his college friends with whom they hang out in our St. Petersburg State University in a closed group of "Mafia". Brother Nicholas took over as technical director.

This circle of the Masonic gold medalists creates a product that is well earned other shareholders. Last year revenues "VKontakte" was $ 94 million, and in 2011 it is planned to be doubled. In November 2010, Mail.ru Group bought the 7.5% stake in "VKontakte" based on the evaluation of the entire company at $ 1.63 billion, and in April this year, issued a statement that evaluates the social network at $ 1.84 billion

Durova care strategy more than a list of those who become richer at the expense of "VKontakte". In the words of his favorite writer, the owner of a startup incubator Y Combinator Paul Graham, it's silly to think that "botanists" did not want to be successful - they want to. But even more, they tend to be the smartest. What could be the best proof of the influence on the minds than the signature "Paul Durov" on every page of the network, which caught a hundred million people?