The road to becoming a

Roadmap | 3

You are reading this booklet because you have shown interest in joining the HUB Network. Great!

The following pages should give you a better idea of what the HUB is all about, how you can join our network and anything else that may be important to know before embarking on the exciting journey of founding a HUB.

Welcome to the HUB!

The story of the HUB 4Founding a HUB 6What makes a HUB 8Getting started 14What happens next? 16A sneak preview 22Finances & Legal 25Onboarding Process 26 FAQ 28

4 | The story of the HUB The story of the HUB | 5

The story of the HUB

The HUB was founded in 2005 to create a ded-icated space to inspire, connect and empow-er people who wanted to realize enterprising ideas for sustainable impact.

There are plenty of people with good ideas for a “better world”. What seems to be missing are enabling environments that help these people – with support from like-minded souls

– move from intent to action, and from action to impact.

We set out to create spaces that borrow from the best of a prototyping lab, a start-up in-cubator, an inspiring office, a learning space and a think-tank to create a unique ecosys-tem for social innovation. Spaces with all the tools and trimmings needed to grow and de-velop new ventures for sustainable impact by providing access to the right experience, knowledge, networks, finance and markets. But above all, spaces for meaningful encoun-

The idea was simple!

how the HUB was born

ters, exchange and inspiration, full of diverse people doing amazing things.

The idea has been spreading like wildfire and resulted in the emergence of a global move-ment to create HUBs across five continents. To date, there are more than 30 open HUBs and many more in the making, ranging from London to Melbourne, Johannesburg to Sao Paulo, San Francisco to Singapore. The ambi-tion is clear: To become a truly global network of 100 thriving HUBs in the key regions and cities of the world by 2015, building a vibrant community of entrepreneurial people who work at the leading edge of social innovation through collaborative action. Locally embed-ded and globally connected.

6 | Founding a HUB

Founding a HUB

There are many ways of engaging in the field by being an entrepreneur, an investor or starting a HUB. HUB members as well as many HUB founders are at the cutting edge of social innovation. If you are excited about bringing a HUB to your city, a city that holds the potential to build a thriving community of “impact creators” and feel that you are the right people to bring this community togeth-er, continue reading.

Please note though that the journey to found a HUB is a long-term commitment of at least 5 – 10 years and requires your full dedication to meet all the challenges that will emerge along the process. If you are up for it though, it is also a magical experience and you will find plenty of support from within the HUB Network to make it work once we commit to each other.

long-term commitment

8 | What makes a HUB What makes a HUB | 9

What makes a HUB

We see ourselves as curators of the physical, virtual and social spaces where the change we want to see in the world is happening. Our spaces and communities are designed to help materialise this change by offering a unique mix of infrastructure, connections, inspira-tion and learning to people who want to move their ideas from intent to action and to im-pact, bringing about sustainable solutions to the social, economic and ecological challeng-es faced by our time.

So what makes a HUB? Essentially, a HUB consists of three distinct elements. It is a vi-brant community of passionate and entre-preneurial people who share an underlying intention to bring about positive change and act as peers to cross-fertilize and develop their ventures. It is a source of inspiration that provides meaningful content through thought-provoking events, innovation labs, learning spaces, incubation and facilitated conversations that matter.

Finally, it is an inspiring space that offers a flexible and highly functional infrastructure to work, meet, learn and connect. The mag-ic happens where these three elements con-nect and are brought to life through the art of hosting.

THe HUB experience

10 | What makes a HUB What makes a HUB | 11

Our value proposition

Ultimately, we would like the HUB to become a global platform where people from all cor-ners of the planet connect and engage in collaborative action to realize enterprising ideas for a better world. We strive to be an in-tegral part of the budding global infrastruc-ture for social innovation and a trust-build-ing agent among the various communities that strive for positive change. In order for this to happen, we are building an accessible, yet closely-knit, bottom-up driven network of high-quality spaces that commit to each other as interdependent peers in the realiza-tion of our shared vision. We are thus setting the ground for trans-local collaborations and global partnerships that create value for our members and the world we live in.

But there is more: By joining the HUB net-work, you will get access to our collective wisdom and learn how to build a thriving HUB. You will receive invaluable support from a dedicated tutor, an assigned Sister HUB, and our global talent pool. You will be able to attend regular conferences where we share knowledge and best practices with each

other. Naturally, you will also benefit from our shared ICT systems and you will be given the opportunity to operate under a co-owned HUB brand. In the end, however, the biggest value may simply be to actively take part in the shaping of a global movement, which is rapidly becoming one of the most dynamic players in the social innovation space, explor-ing ways of shaping the future of our world.

14 | Getting started Getting started | 15

Getting started

If you are serious about founding a HUB, you first need to ask yourself whether your city really holds the potential to build a success-ful HUB. A HUB can only unfold its magic if there is a critical mass of social innovators with exciting initiatives to materialize posi-tive change. Otherwise the ecosystem doesn’t work and you end up with a co-working space, which is great, but not what a HUB is.

So be clear on whether you will be able to attract at least 200+ members who work on sustainable solutions for the challenges of our time, out of which a significant number should be “social entrepreneurs”, i.e. people with innovative ventures that have the po-tential to scale for systemic impact. This core is usually what brings the HUB to life and gives you credibility when seeking finance and building partnerships. So try to talk to as many people as possible about your vision of founding a HUB to get a sense for the po-tential.

potential of your city

size of your community

Don’t make a business plan just yet. There will be time for that. We have a great tool-kit that can help you build the right busi-ness model for your context. And chances are that you will anyway have to fundamentally change your assumptions during the process.

So, are you really interested?

At this point we would like to get to know you a little better. We’d like you to register your interest with us in a slightly more detailed format than when you registered through the website earlier. The purpose of this is to know a little more about you from an early stage to be able to better help you on your journey to decide whether you are a HUB founder or not.

You can register your interest here:http://bit.ly/HUBinfo

16 | What happens next? What happens next? | 17

What happens next?

We’ll get back to you with all the details of the process, criteria, hoops, bells and whistles. We want you to be fully informed before you ven-ture on this journey. The path is adventurous enough as it is, which is why we designed the HUB info package for you! You’ll receive this package upon registration.

Once you feel confident about the potential of your city, it is time to find a team that brings the right qualities together to found a HUB. From experience we can say that the follow-ing archetypes will make a great founding team.

Build a team

Lead Entrepreneur Whether informal or formal, this role is typ-ically the person that convenes the team in the beginning, holds everyone accountable, and holds the initial spark. However, this role can shift multiple times between people dur-ing the process or be shared between several people.

Community Host You can’t just hire people to convene a com-munity for you. Your community will be look-ing to you as a group of founders to build this community and lead it. A community needs to be nurtured bottom up and culture needs to be set early on. It’s hard to change culture months into the life of any organization.

Business Practitioner Someone who has run a business with an an-nual turnover of EUR 300.000 or more, knows how to tell a P & L from a cashflow sheet and can soundly steer the financial mechanics of the HUB.

18 | What happens next? What happens next? | 19

Space Curator HUBs are living, learning spaces for impact and need to embody this. It’s not just about throwing some tables, coffee and a wifi router into a derelict building and hope for the best. The space has to support both your vision and business model.

Events and Programming Designer The HUB will be a bored and uninspired com-munity without high level programming, ed-ucational courses, incubator and accelerator programs. You’ll need someone who can mas-ter most of this and learn the rest.

Business DeveloperLast, but far from least, you will need a person who can lead the work on innovating on your business model, products and activities and build relevant partnerships that can elevate the HUB to the next level.

if you don’t feel you have the right team, don’t do it. In our experience teams that are too small or have rushed the decision on who their core team is end up struggling to make it work and often fail in the process.

Experience has also shown that the initial HUB community is often a reflection of the founding team. Accordingly, make sure you have the kind of networks represented in your team that should build the core of your com-munity: social entrepreneurs, creative think-ers, impact investors, etc. Last but not least, be aware of the fact that founding a HUB is a long-term commitment that may require your full dedication for at least 5 – 10 years to make it fly.

Founding a HUB is not a walk in the park.

You attract who you are!

22 | A sneak preview A sneak preview | 23

A sneak preview

For those of you who can’t wait for the info package, or just want a little bit more infor-mation, read on: There are two major steps in joining the HUB Network: Becoming a “HUB Candidate” and then an official “HUB Initia-tive”.

Becoming a “HUB candidate”

As HUB Candidate you have the exclusive right for 6 months to explore the feasibili-ty of founding a HUB in your city. To gain this status, you need to submit an application form with information about your team and the potential of your city. Within this appli-cation, you will also need to indicate which HUBs you have visited and who has offered to formally back your application. You will find the link to the application form in the HUB info package.

Upon submitting this, someone from the global onboarding team will get in touch with you for a personal interview. Based on this, a review committee will come together to as-

1 submit application

2 team interview

sess your application. If successful, you will sign a Memorandum of Understanding that will give you the right to explore the feasibil-ity of a HUB in your city and use the HUB Candidate logo in the process. You will also receive a feasibility tool-kit, the HUB Prac-tice Handbooks, you will be assigned to a HUB Associate as a tutor and you will be in-vited to any upcoming HUB induction semi-nars, which are designed to ensure that you are given all the information you need to judge whether a HUB is feasible in your con-text.

From a “HUB candidate” to a “HUB initiative”

Once you have completed your feasibility study, you can submit it to the global man-agement team, which will give you feedback and ask for a resubmittal if necessary. You will then need two existing HUBs to formal-ly back your application before you can apply for “HUB Initiative” status at the HUB Asso-ciation’s General Assembly.

The General Assembly is the core of our global governance mechanism and the place

3dedicated support & induction seminars

4 submit feasibility study

5 two HUBs to back your application

24 | A sneak preview Finances & Legal | 25

where all existing HUBs can express their views and vote on important matters relating to our collective future. The global manage-ment team and your tutor will help you navi-gate this process.

You need 2/3 of all votes to pass as HUB Ini-tiative in the HUB Association general as-sembly. From this point onwards, you are a non-voting member of the network and can participate in the HUB governance conver-sations. You will also get a customized HUB logo and presence on our global website. You will then have a further 18 months to get a HUB up and running in your city.

6need 2/3 of all votes at GA!

7full access to HUB knowledge, customized logo

Finances & Legal

In return for joining the network, you will need to sign our shared license agreement and pay a joining fee. The payment is split into three installments: one when you apply as a HUB Candidate, one when you become a HUB Initiative and the final one when you fi-nally open your doors. The payment is spread out to accommodate the economic challenges of a start-up venture. Upon opening, you will be contributing 2.5% of your revenues to-wards global operations. At this point, you are a full member of the network and get voting rights to take part in global decision-making.

sign license agreement & pay joining fee

3 installments:- when becoming HUB candidate

- when becoming HUB initiative

- when opening

26 | Onboarding Process Onboarding Process | 27

Onboarding Process

realization

Mobilization

• Capital raise• Secure lease• Community Building

• HubAssociationmembership• Customizedlocalbrandandlogo• Globalwebsiteincl.localmicrosite• SelectedSister-Hub• AccesstoPracticeAcademy• Participationincollaborationplatform

• Invitationtoglobalgatheringsandconferences

• register on www.the-hub.net/join-us

• InvitationBooklet

imagination• express interest• visit at least

one HUB• get support

from a HUB• Commitment

deposit• HUB Candidate

application

• HUBInfoPack

exploration • Feasibility Study• 2 Recommen-

dations • 1/3 Joining Fee

• TutoringfromaHUBAssociate

• SignedMoU• HUBCandidateLogo

Feasibility

• Running a thriving HUB• 2/3 Start-up Fee• 2.5% Revenue Share

• VotingRight&Co-Owner

Habitation

Acceleration

HU

B C

andi

date

HU

B In

itia

tive

Up

& R

unni

ng H

UB

28 | FAQ FAQ | 29

FAQ

The HUB IP and Brand is owned by “HUB As-sociation”, the collective of all HUBs, where every HUB has one vote to make global de-cisions. HUB Association is furthermore the sole owner of “HUB GmbH (HUB Company)”, a charitable company with the mandate to manage global operations and facilitate the development of the network as a whole, simi-lar to hosting a local HUB community. HUB Company is currently run by a dispersed team, several of which are local HUB found-ers.

In order to become a HUB Candidate, there is a flat and one-off commitment fee of € 2k, which covers the direct tutoring support you get as a HUB candidate. The calculations for your network joining fee, however, are based on your projected income after three years of operations. HUB Initiatives with projected revenue in running operations of less than € 100k pay € 10k, HUBs expecting between € 100k – € 400k pay € 15k and HUBs expect-ing over € 400k pay € 20k. 20% of this fee goes to the Sister HUB to compensate for its sup-

How is the HUB network governed?

Who owns the brand?

How much is the joining fee?

port along the start-up process, the rest goes to HUB Company to cover expenses related to facilitating the network.

In almost all cases to date, local teams in challenging contexts have managed to raise the fee independently of any assistance from the global network. However, in some cases, we have been known to partner with strategi-cally aligned organisations that have offered funding towards the joining fees and other necessary investments. We are very commit-ted to global diversity and ensuring the HUB is accessible across various national, political and economic barriers.

Every HUB contributes 2.5% of its revenue for the further development of the network and help cover global operations, such as ensur-ing the quality of new HUB initiatives, facili-tating HUB to HUB collaboration and setting up global partnerships that create value for our members – realizing that we can achieve so much more when we work together. Reve-nue is currently defined as generated income from membership and space usage for work-shops, offices or events.

How is the network inclu-sive towards lower income economies?

What counts as “revenue”? What is the money used for?

30 | FAQ FAQ | 31

Most HUBs are still in start-up mode as 70% of our network is less than three years old. However, more than 80% of HUBs over 2 years have a stabilized or positive EBITDA. It has become clear, however, that we need to continuously innovate our business model in order to become fully financially sustainable and pay decent salaries, e.g. through HUB Fellowship programs, HUB Venture labs and HUB Winter schools. This underlines the im-portance of building a strong community of high-quality people, which may then be lever-aged for other revenue streams.

There are over 50 teams all across the world that are exploring the idea of creating a HUB in their city. The newest additions to the net-work will be coming mainly from the Asia, US, Latin America and Eastern Europe, though there are also exciting initiatives in Africa and the Middle East, which we seek to sup-port with the development of strategic part-nerships, leveraging the full power of the net-work. All very exciting really!

We are aware that the HUB is only part of a larger movement for social innovation and that there are many HUB-like spaces out

How many HUBs are already financially sustainable?

How many HUBs are currently in the making worldwide?

Are there alternative HUB models?

there that are doing great work in their re-spective areas. We very much believe in the power of collaboration and are excited about collaborating with and learning from organi-sations that we admire. Moreover, we realize that the current HUB model only works in bigger cities but are also evaluating ideas of models which could connect smaller places to the HUB Network on much different condi-tions. After all, we are all working towards the same vision and the more we collaborate, the faster we’ll get there!

Please get in touch with Ioana Constantin from the global team for any further inqui-ries: ioana.constantin@the-hub.net

How do you relate to the broader social innovation movement?

Who do i need to contact if i have any further questions?

We look forward to getting to know you !

Text HUB GmbH | Photos HUB Kings Cross, HUB Madrid, HUB San Francisco, HUB ViennaIllustration Alfredo Carlo | Design Seraina Brugger

October 2012