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Business Incubator

21 April 2023

Olli Mankonen

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Incubation history in Turku

• started 1989

• 1989-2000 ”one man show”: • shortage of human resources

• heavy recession 1990-1994

• economical growth 1995-2000

• venture capital available 1995-

• 2000-2001 organization development (4 experts in business development):

• development of our services (=more added value)

• TULI

• 2002- one incubation program, two units: • Biotech Incubator and DIO Business Centre

• LIKSA

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Incubation team

Olli Mankonen

Department Manager

Tapio Hurme

Business Development

Biotech

Juha Achrén

Business Development

ICT

Johanna Reiman

Project Manager

TULI-program

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Business planning

Evaluation

Finance negotiations

Selection and finance decisions

Incubation period

TULI, LIKSA

CONSULTING, EDUCATION, LIKSA etc.

Exit

Incubation process

1-3 years

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Incubation process

• expert services and education for business development

• office and lab space

• office services (telephonist, copying etc.)

• networking: connections to financiers, universities, consultants etc.

• financial support

• TULI-finance (”from research to business”)

• LIKSA-finance (for business planning)

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Expert services and education

• Business plan development and evaluation• Advising, sparring

• Counselling by incubation team• During incubation period

• Strategy, marketing, finance

• Our input depends on the need

• Informal process

• Other consultants • services are often subsidised

• Education• Short entrepreneurship course (50 h + 1 consultancy day)

• Sales

• Business plan competition

• Short seminars

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Networking to other development programs

• Source Code Finland• Not successful

• GAP

• Global Software• Espoo, Oulu, Tampere, Jyväskylä

• Next year also Turku

• Hermia Business Development Ltd: “Partnership program”

• Education: universities, TE-keskus, Finnvera

• Technology programs (Tekes)

• LIKSA

• TULI

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Results

• 136 start ups

• Survival rate over 85 %

• About 750 jobs

• About 25 companies have received finance from VC-investors or business angels

• Growth rate has not been satisfactory

employees > 50 21-50 11-20 5-10 <5

Bio 2 1 6 1 23

ICT 4 23 37

Others 1 7 35

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Start-up examples

Eweline Finland Ltd. (Ellibs.com)• First contact November 2001

Business plan was not acceptable

Strategy was not clear, several product ideas without clear focus, unrealistic goals

• Several meetings during 2002

Strategy development, product definition etc.

• Finance negotiations

No venture capital, but some partners have financed

• Accepted to incubator on February 2003

• Started in incubator on March 2003

e-Book lending system, online bookstore for e-books

• GAP-program

• 200 libraries in Finland has the lending system

• England, Sweden, Denmark

• Investors are interested, but no agreements

• 5 employees

• Growth potential is obvious

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Start-up examples

4Pharma Ltd• Data management, data warehousing, statistics,

information technology and scientific writing for pharmaceutical industry

• First contact July 2001Based on university unit CRST (Clinical

Research Service Turku)• “Nothing happened”• First business plan (”quick and dirty version”) on March

2002• Acceptable business plan in the end of March 2002• Accepted and started in incubator on April 2002

No venture capital, small loan, positive cash flow

• LIKSA-finance on May 2002Better business plan

• Investor meeting (Eqvitec) organized by incubator on October 2002

Finance negotiation started• Exit from incubator premises on January 2003, counselling

continues• Venture capital investment on June 2003• 15 people• Profitable and growing company