chasing the tail of the unicorn - infographics to the report on swedish unicorns

CHASING THETAIL OF THEUNICORN

A STUDY OFSTOCKHOLM'SMISTY MEADOWSDOWNLOAD THE FULL REPORT - HERE

INNOVATIVE INTERNET REPORT ONE - 2016

FUNDING

EMPLOYMENT

TECHNOLOGY

INTERNETINFRASTRUCTURE

NETWORKS

https://www.iis.se/docs/Chasing-the-Tale-of-the-Unicorn-A-study-of-Stockholms-misty-meadows.pdf

Source: Chasing the Tale of the Unicorn: A study of Sweden’s misty meadows, Stockholm School of Economics 2016, p8,https://www.iis.se/docs/Chasing-the-Tale-of-the-Unicorn-A-study-of-Stockholms-misty-meadows.pdf

Sweden is remarkably competitivein the IT-sector. This is especiallytrue when looking at the amountof highly valued startups thatStockholm has produced during thelast few years. When counting thenumber of “unicorns”, i.e., high-techstartup companies that achieve avaluation of at least USD 1 billionwithin 10 years, Stockholm standsout as the city with the mostunicorns per capita in the world andas a region second only to SiliconValley. This is one reason whyStockholm in the international presshas been called the “unicorn capitalof the world”.

STOCKHOLMUNICORN CAPITAL OF THE WORLD?

STOCKHOLMS UNICORNS:

Unicorn is a buzzword and as such the definition varies with whom you ask. Our definition is thefollowing: “A technology-based startup that attains a valuation of at least one billion USD within 10years of founding and that has not been acquired by another company.

Through our data collection, we gathereddata on 17,377 unique individuals holding84,568 leading positions at 4,414 companies(startups and their clouds) during the timeperiod January 2007 to January 2016focusing on 15 cases in the Stockholm area.

We then created a set of descriptivevariables for each startup based upon anaggregation of the data collected forindividuals holding leading positions at thestartup and the startup’s cloud. These dataenabled us to construct the social networkof 15 companies for each year since 2007.This social network consists of both directand indirect links.

When looking at all the variables together,our cluster analysis reveals that thecompanies do cluster in four differentgroups, which we have color coded with thecolor in parentheses and companies’success. You can see the graphicvisualizations here

WHAT HAS BEENRESEARCHED?

Group A (blue): Moderate average age and

homogeneity in age : LeoVegas, Footway, FishBrain,

Spotify, Mojang, KnCMiner, Avito

Group B (red): Moderate average age and moderate

homogeneity in age: Klarna, Fyndiq, TrueSoftware,

MAG

Group C (green): High average age with moderate to

high hetero geneity in age.: Zound, iZettle

Group D (purple): Low average age with

homogeneity in age: Tictail, ShapeUp


Our report argues that true valuecreation is identified within theecosystem of indirect relationships asseen in the example of 15 companiesin Stockholm. An understanding of thedynamics and intricacies of theseinformal networks improves thechances of success in the increasinglyinterconnected internet era.

One of the most widely investigatedsocial networks of companies is thenetwork of a firm’s board of directorsand top management teams.

WHY SHOULD YOU CARE ABOUT LINKS BETWEEN 15 COMPANIES?

V A L U E = P O W E R O F I N D I R E C TR E L A T I O N S H I P ?

W H A T A R E D I R E C T L I N K SW I T H I N C O M P A N I E S ?

A direct link constitutes a directconnection between two individuals orgroups, i.e., person A has a directconnection with person B. An indirectlink suggests that two individuals orgroups are linked together by a sharedconnection.

For example, groups A and C bothinterface with group B, but neither ofthem interfaces directly with eachother.


Source: How Stockholm Became a “Unicorn factory”. 2015. Knowledge@Wharton. Wharton University ofPennsylvania. November 9. http://knowledge.wharton.upenn.edu/article/how-stockholm-became-aunicorn-factory/(Accessed 2016-03-30).

Some say we live in the age of theunicorns.

During the last few years animpressive number of Swedishcompanies have risento unprecedented success in a shorttime.*

It is no wonder that Sweden and itscapital city of Stockholm as a fertilebreeding ground have been thesubject of numerous media reportsof late. How did Sweden arrive atthis position?

We will present some initialreasons on following pages butplease download our FULL reportfree of charge (thanks to thefunding from the InternetFoundation of Sweden)

STEPS TOWARDS

UNICORNS

FULL REPORT? CLICK HERE :)



Sweden investsaround 3.4% of its GDPin R&D, compared withthe EU‐wide target of3% in 2020.

IT has one of thehighest expenditures inR&D per capita in theworld, with around17% of researchfunding coming fromprivate funds,nonprofitSand companies, whichis comparable to theUS.

UNICORN FACTORS

NATIONAL LEVEL


Stockholm isthe second mostprolific tech hubglobally after SiliconValley on a percapita basis ‐with 6.3 billion‐dollar companies permillion peoplecompared to SiliconValley with 8.1billion dollar

UNICORN FACTORS

CITY LEVEL


Stockholm tends tocommand 15% of thetotal foreign directinvestmentin the Europeantechnology sector.


From 2011 to 2015,Stockholm attractedca. 659 million USD ininvestments. fifteenFinTech dealsattracting USD 266million in investmentsin 2014.

FUNDING

of Sweden’s total USD826 million ininvestments in privatecompanies.

32% (!) This account for


SEVEN OUT OF 15STARTUPS AREINTERCONNECTEDTHROUGH INDIRECTCONNECTIONS

STRONGLY CONNECTED

Whereas we find very few directconnections between the sevenstartups identified, we see a highdegree of indirect connectivitybetween board members and topmanagement individuals sittingtogether on a third company'sboard.

For example, company A and Bhave no direct links to each other,but the CEOs of company A and Bboth sit on the board of companyC, thus linking them togetherindirectly

Source: Chasing the Tale of the Unicorn: A study of Sweden’s misty meadows, Stockholm School of Economics 2016, p94 https://www.iis.se/docs/Chasing-the-Tale-of-the-Unicorn-A-study-of-Stockholms-misty-meadows.pdf

Stockholm as aHIGH‐TECH city.There are more than22,000 technologycompanies androughly 18% of thecity’s workforce isemployed intechnology‐relatedroles.

MOST POPULARJOB BEING APROGRAMMER

EMPLOYMENT

FIND OUR MORE ABOUT STOCKHOLM HR CAPITAL -

LINK TO A STUDY OF LINKEDIN - HERE

http://www.slideshare.net/MichalGromek/stockholm-economic-graph-in-cooperation-with-linkedin

Source: Chasing the Tale of the Unicorn: A study of Sweden’s misty meadows, Stockholm School of Economics 2016, p94 https://www.iis.se/docs/Chasing-the-Tale-of-the-Unicorn-A-study-of-Stockholms-misty-meadows.pdf

FinTech is alsocreating jobs andrevenues for thecity withrevenue rising fromSEK 7.5 billion to SEK14 billion. The number ofemployees climbedfrom around 2,900 tomore than 5,800 from2010 to 2015.

FINTECH ASA SECTOR DOUBLEDBETWEEN 2010AND 2015

GROWTH

100%

S H O R T L Y A B O U T U S :

The Internet Foundation in Sweden (IIS –Internetstiftelsen i Sverige) is an independentorganization for the benefit of the public thatpromotes the positive development of the Internetin Sweden. IIS is and intends to remain the naturalchoice for companies, private individuals, andorganizations that want a domain name associatedwith Sweden. The Foundation’s ultimate objective isfor everyone to be able to harness the internet’spotential. Questions connected to the InternetFoundation of Sweden, please [email protected]

CSC, Center for Strategy and CompetitivenessCenter for The Center for Strategy andCompetitiveness (CSC) was founded in 2005 andfocuses on five research tracks: Strategy and MarketSystems, International Business, Knowledge inNetworks, Clusters, and Competitiveness Policy.Center for Strategy and Competitiveness is a centerat Stockholm School of Economics Institute forResearch which is an independent researchfoundation, founded in 2010. The overall aim is toconduct qualified academic research within theeconomic sciences, which aims to unite scientificstringency with empirical relevance. The Institute’sBoard Consists of Professors and otherRepresentatives from the faculty of StockholmSchool of Economics. The Institute encourages andsupports the affiliated researchers to communicatetheir research findings. The purpose of theInstitute’s publications is to disseminate researchconcerning corporate enterprises and society.Questions connected to the review, please [email protected]

The project “Innovative Internet” is funded by The Internet Foundationin Sweden (IIS – Internetstiftelsen i Sverige). The project is beingexecuted by researchers from Center for Strategy and Competitiveness.The next phase of the project will review the impact of FinTech andSharing Economy.

This is the first time when we have decided to create an infographic fromour report to make our research more accessible and would like to knowif you like it. Additionally in case you see cooperation potential, wouldlike to invite us for presentation to share our findings or like to join ourresearch team send us an email to [email protected]

Center for Strategy and Competitiveness is a part of Stockholm School of Economics Institute for Research

JOIN OUR RESEARCHNETWORK ONFINTECH AND SHARING ECONOMY

ALBIN SKOG: [email protected] MATS LEWAN: [email protected] MICHAEL KARLSTROM: MICHAL GROMEK: [email protected] PROF. ROBIN TEIGLAND: [email protected] SERGEY MORGULIS-YAKUSHEV: [email protected] SHAHRYAR SIRI: [email protected] LU: [email protected]

DESIGN: MICHAL GROMEK

RESEARCHTEAM MEMBERS

WHO CONTRIBUTED TO FIRST PART OF THE REPORT IN ALPHABETICAL ORDER:

SHARE THIS REPORT

THIS REPORT IS MADE AVAILABLE UNDER A CREATIVE COMMONS LICENSE, CC BY-NC-SA 4.0

Get in touch with us: [email protected]

chasing the tail of the unicorn - infographics to the report on swedish unicorns

Economy & Finance