entrepreneurial finance for student entrepreneurs in europe_hkist_ree090910
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8/8/2019 Entrepreneurial Finance for Student Entrepreneurs in Europe_HKIST_REE090910
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Entrepreneurial Finance for Student
Entrepreneurs in EuropeHeleen Kist
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Today‟s workshop
I‟d like to tell you about Europe‟s ambition
Entrepreneurial support in Europe
The new(ish) focus on student entrepreneurs
CommonalitiesInterestingvariations
I‟d like us to discuss
Whether student entrepreneurs merit specialattention
Considerations in developing the optimal supportpackage for student entrepreneurs
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Europe
„Old‟ Europe
(Possible) accession states
Non EU
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Europe‟s ambition
The Lisbon Agenda 2000 – 2010
Its aim was to make the EU "the most competitive and dynamic knowledge-basedeconomy in the world capable of sustainable economic growth with more and better jobs and greater social cohesion", by 2010
Strong focus on knowledge transfer
ERDF (Structural funds) applied to Regions
EC funding applied Europe-wide
The new European Strategy 2010 – 2020Its aims to turn the EU into “a smart, sustainable and inclusive economy
delivering high levels of employment, productivity and social cohesion” by 2020
Still strong focus on knowledge and innovation
Stronger focus on employment
ERDF (Structural funds) applied mostly to Regions in newaccession states
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The big trends
The 80‟s & 90‟s
Technology parks by universities to attract inward investment Provided incubation opportunities for spin-outs
Grants and favourable tax regimes began
Late 90‟s - 00‟s
Cluster strategies, physical or virtual
Investment in technology transfer offices
Still a lot of incubation
More network creation, advice and grants
Access to Finance to fill the funding gap
Now
Last chance at publicly funded Access to Finance in „Old‟ Europe,still trying to stimulate the private sector. JEREMIE.
Still a lot of focus on High Tech opportunities
But a recognition of opportunity in the „lost generation‟
Private sectorengaging
gradually, andsometimestaking over
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Case studies: Tech transfer gone public
Imperial Innovations (London, UK)
Tech transfer department for Imperial College founded 1986- one of the first in Europe
Incubation facilities
2002 sold stake in its portfolio to private investors
Listed on AIM in 2006
Third party incubation contracts with Carbon Trust and WRAP
Karolinska Development (Solna, Sweden)
Investment fund dedicated to Life Sciences in Nordiccountries based at Karolinska Institutet
Partnership with KIAB Incubator: right of first refusal!
Rights issues to raise funds, with pension funds and privateasset managers as shareholders
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Ranking of support infrastructure
Ahead of the curve
UK
Nordic countries
Netherlands
A concerted effort
France
Germany
Belgium
Switzerland
Lagging behind
Italy
Spain
Greece
Portugal
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Entrepreneurial support landscape
Type of support
Competitions
•They‟re everywhere!
• Smallest prizes <€500
• Biggest European prize €100,000*
• Biggest Global prize > $250,000**
• Great exposure
• Adds credibility
• Corporate partners could become
supporters or customers, e.g.
SHELL LiveWire
Advice & mentoring Grants Incubation Real Money
Networks & competitions
Networks
• Universities and Business
Schools have entrepreneurship
clubs
• Industry cluster networks
• Random entrepreneurship
networks
* www.seedcorncompetition.com **DFJ/Cisco
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Entrepreneurial support landscape
Type of support
• It‟s everywhere!
• Usually publicly funded and run: is considered the minimum
• Databases of mentors or consultants
• Signposting
Grants IncubationNetworks & competitions Real Money
Advice & mentoring
Finds you a „Godfather‟
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Networks & competitions
Entrepreneurial support landscape
Type of support
• Very common
• National or Regional
• Range from <€1000 to £250,000 (Scottish Enterprise‟s Proof of Concept)
• Usually to help fund:
• training
• (marketing) consultancy
• investor readiness
• R&D
• EU Framework Programme to support R&D and collaboration
Advice & mentoring Incubation Real MoneyGrants
EXIST in Germany gives grantsthat give entrepreneurs a salary,
funds for materials and evencontributes to childcare cost!
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Case study: Piggy backing on grants
SMART match funding from Braveheart Ventures
SMART Awards are grants from Scottish Government for R&D
start-ups in feasibility stage They offer up to £50,000 for up to 75% of project cost.
Remaining 25% must be provided privately – own funds,investment, revenue, …
Braveheart Ventures, angel syndicate (originally) and listed
investment company active in very early stage technology sector Braveheart set up a SMART Equity Scheme which provided the
private match funding required in exchange for equity
Benefited from dealflow
Benefited from due diligence
Benefited from public sector leverage
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Networks & competitions
Entrepreneurial support landscape
Type of support
• Most commonly associated with universities, although some private
sector facilities exist
• Range tremendously in size and professionalism
• Generally provide free or low cost
• Office and lab facilities
• Business support
Advice & mentoring Grants Real MoneyIncubation
• Geneva, Switzerland
• Non profit foundation, launched 2010• Scientific Advisory Board, and VC on Board• Co-working facilities, seminars attracting many
student entrepreneurs – very organic
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Networks & competitions
Entrepreneurial support landscape
Type of support
Advice & mentoring Grants Incubation Real Money
Public investment
• Venture Capital and
Loan funds either fullypublic or with private
contribution
(subordination of public)
•Often focused on High
Tech only
• Micro-loan funds for
small service oriented
businesses
Angels and private VCs
• Invest within a region
for convenience• Clustered around
centres of Excellence
e.g. Oxford & Cambridge
Banks
• Not easy to get credit
•
Government loanguarantee schemes to
facilitate
New JEREMIE funds, funded by ERDFand European Investment Bank for next
5 years in many regions in Europe
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Case study: Latching onto Universities
Listed technology investor in UK
Partners with universities to provide proof of concept and seedfunding for high tech companies
IP Group provides a cash payment to the university in exchangefor either a percentage ownership in any IP coming out of department/university (e.g. Chemistry at Oxford) and the rightof first refusal
IP Group commits to a certain amount of funding to having dealscouts on the ground to stimulate company creation and select
investments
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Most commonly found in „Old‟ Europe
Networks &
competitions Real Money
Advice &
mentoring
Grants &
incubation
Type of support
Type of entrepreneur/business
Nature of source
AnyoneDis -
advantaged
Academics,
researchersStudents
EC or ERDF PrivateNational orRegional Gvt
Public & private
Focus of source
European UniversityNational Regional
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What you wanted me to talk about
Networks &
competitions Real Money
Advice &
mentoring
Grants &
incubation
Type of support
Type of entrepreneur/business
Nature of source
AnyoneDis -
advantaged
Academics,
researchersStudents
EC or ERDF PrivateNational orRegional Gvt
Public & private
Focus of source
European UniversityNational Regional
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Case study: Student focused equity
Venture capital fund focused on student entrepreneurs inGroningen, the Netherlands
Joint venture between local 2 universities and a privatefoundation aimed at supporting employment in the region
Runs business plan competitions with €750 prize money
Investment of up to €100,000
Investments not necessarily high tech
Farganic - FILT label of fairtrade clothing
Ryfkogel – high end hair styling device andproducts
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New(ish) focus on students
Recognition of „lost generation‟ problem at policy level: high
unemployment throughout Europe
Increasing number of successful role models
Cultural shift: away from „professions‟ as best career choice 83% of Dutch students want to start their own business… but only 3% do*
45% of French students want to start their own business **
Only 12% of Spanish students want to start their own business***
Increasing ease with which one can design and develop aproduct, service, App, etc at low cost
Increasing ease with which one can market to customers
20 is the new 40?
*** http://www.eleconomista.es/blogs/emprendedores/?p=977
* Poll by Jong Ondernemen, May 2009
N o t c o m p a r a b l e
d a t a b u t
t r e n d f e e l s r i g h t
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Case study: Stimulating students
Movement for French student entrepreneurs
Promote student entrepreneurship
Support entrepreneurs in their journey through tutoring and business
plan competition
Provide information through the online portal
Set up by
French Government
State Owned agency for promoting business creation
OSEO is a public French consultancy and investor that supportsinnovation, provides bank guarantees for innovative projectsand helps find funding for innovative projects.
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And students are doing it for themselves
Student run incubator in Helsinki, Finland Started early 2010 by students and entrepreneurs from
Aalto university‟s Entrepreneurship Society
Seed funded by the university
The Garage „s 700sq meter free working space for anyone
throughout the Baltic area
Run BootCamp and Summer of Startups training 4 timesa year
The highest potential teams from our Bootcamps becomeGarage Startups.
These teams receive a mentoring relationship with thecoaches, office space for 6 months and 5,000 euros.
The Garage also sends the Garage Startups to eitherSilicon Valley, Isreal or China to broaden theirbusiness contacts.
Suggestion to attend the “Student Run VC Funds” discussion on REE agenda
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Discussion
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Do students need more/specialist help?
Survey among business support an representative organisations forentrepreneurs in 2000. The study covers all 15 countries of theEuropean Union and six countries in Central and Eastern Europe.
Source: http://ec.europa.eu/enterprise/policies/sme/files/craft/craft-studies/documents/executivesummary_en.pdf
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Do students need more/specialist help?
Survey among business support an representative organisations forentrepreneurs in 2000. The study covers all 15 countries of theEuropean Union and six countries in Central and Eastern Europe.
Source: http://ec.europa.eu/enterprise/policies/sme/files/craft/craft-studies/documents/executivesummary_en.pdf
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What is “the right” package for students?
Networks &
competitions
Advice &
mentoring Grants
Type of support
Type of entrepreneur/business
Nature of source
AnyoneAcademics,
researchersStudents
EC or ERDFNational or
Regional GvtPubic & private
Focus on place
European National Regional
Incubation Real Money
Dis -
advantaged
Private
University
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Companies mentioned duringthe workshop
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Companies mentioned in workshop
Ephicas, the Netherlands
Started in 2008 by PhD student at the Faculty of Aerospace
Engineering at the TU Delft
Ephicas SideWing attached to trucks deliver an average fuelsaving of 5% to 10%
Supported by Yes! Delft incubator
Immediate traction with prospective customers: TNT
As a result, some innovation loan from Rabobank
Watch video onwww.ephicas.eu/
about-us/
Henesis, Italy www.henesis.eu
2007 Spin-off of Scuola Superiore Sant'Anna
Design and development of multiscale artificial perception systems
Small local grants for training and consultancy
Investment by family member
Early partnership with Toyota
Participant in Framework 7 programme
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Speaker bio
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Heleen Kist
Heleen Kist is an independent strategy consultant, based in Edinburgh, specialising in
technology ventures, access to finance and the knowledge economy.
She advises private companies, large and small, on their growth strategies and theexploitation of innovation in sectors ranging from biomedical to new media.
Public sector organisations have relied on her to design, implement and evaluate national andregional access to finance provision to encourage economic development. Notable successesinclude the Scottish Co-Investment Fund and, more recently, the £125m North East JEREMIEfund.
Heleen brings to the table substantial blue chip and international experience. She has a trackrecord of resolving board level issues consulting at McKinsey & Company, working in theNetherlands, Belgium, the UK, Sweden, Italy and France. She can also strongly relate to theentrepreneurial community, having run a telecom software start-up which folded during thebust of 2000.
Heleen has a MS in Chemistry from Leiden University in the Netherlands and an MS inManagement Science and Engineering from Stanford University.
While at Stanford, she helped set up the Stanford Technology Ventures Program, and co-wrote ”The Characteristics of the Entrepreneur“ (with T. Byers and R. Sutton), TechnologyManagement Handbook, ed. C. Dorff, CRC Press 1998.
She also holds certificates in Corporate Finance and Investment Management and is a COREaccredited mediator.
www.skillcast.co.uk