ceo/fund manager estonia - startup wonderland?€¦ · london or estonia.” • „if i see a...
TRANSCRIPT
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ESTONIA -
STARTUP WONDERLAND?
Heidi Kakko
CEO/Fund Manager
Presentation for Finance Estonia International Forum 6 June 2013
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Phenomena of Estonia
• „One of the secrets of global seed investing is, I can tell you right now because of AngelList, where the high quality companies tend to reside. In Europe the majority of them are London or Estonia.”
• „If I see a company coming out of Estonia I am reasonably assured that it will be executed well. That is because there is a lot of Skype alumni in Estonia. For its size, Estonia is generating more high quality startups than you would expect.”
Naval Ravikant,
Founder of AngelList
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Outstanding Estonian startups
88 startups
9%
90 MEUR raised
19%
Source: Seedcamp business accelerator
Taavet Hinrikus / Dave McClure:
#estonianmafia
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NYC like ...Tallinn, Estonia
• „NY City is like Tallinn, Estonia – fast, lean and very
aggressive. SF was too slow for us. Key points for us are:
great labour law, low tax, easy to hire, and cheaper tickets ...”
Kris Hiiemaa, Erply
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Fundraising by Estonian startups
-
5 000 000
10 000 000
15 000 000
20 000 000
2006 2007 2008 2009 2010 2011 2012 2013
Total raised in MEUR
Estonian investors in MEUR
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VCs in Estonian startups
• Redpoint Ventures, Index Ventures,
Dave McClure’s 500 Startups
• Valar Ventures, SV Angels, IA Ventures,
Index Ventures, Seedcamp and TAG
• Conor Venture Partners, Fostergate Holdings Ltd,
Entrepreneurs Fund
• Intel Capital, Greycroft Partners
• Charles River Ventures, Atlas Venture,
NextView Ventures, Matrix Partners
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Building the bridges
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Why did it happen?
• Skype legacy, heritage, dream, role-model
• Starting up has proven and made easy
• People with the attitude – I can do it!
• Other alternatives of becoming a millionaire are limited
• Small market - think big from the start
• Political leadership - e-services, tax regime, public focus
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Hall of Fame #estonianmafia Annual revenue $1M+ and/or funding $500K+
Source: Garage48HUB
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Sources of capital in phases
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• Local supply of capital in early stages
• Technology transfer - skills and financing
• Entrepreneurs (in residence)
• International staffing for C-level
• Network and contacts
• Strategy for MNC focus ?
What does Estonia need for startups?
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1. IT application (horizontal) in different industries
• Automatisation and robotics
• Cyber defence
• Software development
2. Health technologies and services
• Biotechnology
• E-medicine
3. Resource effectiveness
• Materials
• Smart housing (energy and IT)
• Health supporting food (tech)
Smart specialisation