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How do you cash in on tolerance of risk?

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How do you cash in on tolerance of risk? How do you cash in on tolerance of risk? Presentation Transcript

  • How do you cash in on tolerance of risk? The Startup Perspective Antti Vilpponen
  • Antti Vilpponen
    • Founder, ArcticStartup.
    • Co-founder, Gyllene Skor.
    • Background in International Marketing.
    • Lived in Singapore, Spain and Australia.
  • This talk has two parts:
    • <1> The challenge
    • <2> The solution
    View slide
    • <1> The challenge
    View slide
    • Innovations by themselves have no value.
  • Quick visit to Finland
    • 5.3 million
    • Member of EU
  •  
    • Politically and economically stable.
    • Finland tops patents per capita charts, year after year.
  •  
    • Problem isn’t in creating innovations, it’s in how to capitalise them.
  • Per 100M€ in research Source: Sitra Report by Kankaala Finland UK US Invention Disclosures 40 28 87 Patents 7 15 11 Licensing income 250k € (2005) 1 600k € (2004) 7 000k € (2004) Spinouts 5 6 1
  • Whose job is it then?
    • Universities, Large Corporations, Startups?
  • Universities?
    • Not in that business – we research.
  • Large companies?
    • We carefully review our investments and focus on incremental innovations.
  • Startups?
    • You bet.
  • Startups?
    • They offer best risk-return ratio
    • for high risk investments.
  • Finland vs Israel vs Massachusetts Source: VICTA Report by Ruohonen (2007) Finland Israel Massachusetts Population (M) 5,2 6,9 6,3 Share of Academic degrees 25 25 NA Number of new companies annually 23 000 20 000 27 000 R&D investments % of GDP 3,5 4,1 4,9 Patents filed per million per capita 166 186 300
  • Finland vs Israel vs Massachusetts Source: VICTA Report by Ruohonen (2007) Finland Israel Massachusetts Avg. initial investment 0,3 2,8 6,2 Total annual volume of VC investments M$ 220 1 650 2 400 Number of companies in Deloitte Fast Growth 500 4 44 36 Annual IPOs 1 35 (H1/2007) 9 Active early stage VC funds 10 60 50 Global R&D centers of major coporations 5-6 30-40 10-20
  • Our challenge summarised
    • We lack the entrepreneurial culture.
    • <2> The solution
  • Solution
    • Build a healthy networked startup community.
    • How?
    • Baby steps on many fronts.
  • Government’s role
    • Fill the gaps the private sector is unable to fill and catalyze those where private sector is active.
  • Government’s role
    • The basis is in the infrastructure. Support and praise innovation, don’t limit it.
  • Example 1
    • Skype. Built on peer-to-peer filesharing technology.
    • Acquired by eBay for 2.6B USD.
  • Example 2
    • Spotify. Built on peer-to-peer filesharing technology.
    • Hottest music startup in Europe.
  • Do avoid this:
    • “I'm a guy who doesn't see anything good having come from the internet. Period.”
    • -Michael Lynton, CEO, Sony Pictures
    • Creating a culture is the most important issue.
    • If we learn anything from the history of economic development, it is that culture makes almost all the difference. You can build as many incubators as you like, but if only 3% of the population want to be entrepreneurs, as in Finland, you will have trouble creating an entrepreneurial economy.
    Source: The Economist; Heroic Entrepreneurs (March 12 th , 2009)
  • Some examples from Finland
    • Government effort
    • AES
    • Intl concepts: Open Coffee, MobileMonday
    • ArcticStartup
  • Vigo Accelerator
    • 45 million € fund
    • High profile mentors and board
    • Virtual high growth incubator
    • Strict criteria and guidelines
  • AES
    • Aalto Entrepreneurship Society
    • Most active new group of Aalto University
    • Helping students
  • Open Coffee, etc.
    • Mainly networking events, gatherings to share ideas, meet new people and brainstorm.
  • ArcticStartup
    • Create a radically optimistic startup culture in the Nordics and Baltics.
    • Founded 9/2007.
    • Media + Events + Online service
  •  
  • ArcticStartup
    • Over 10 000 visitors from 130 countries
    • Initiated 4 investment rounds
    • Praise from gov’t organisations, VCs and entrepreneurs
  • Nokia – Innovation Mill
    • Opens patent portfolio to 100 carefully selected startups.
    • Works with incubators and universities to commercialise.
    • Outsourcing commercialisation and risk.
    • Creating a culture is the most important issue.
  • Thank you.
    • [email_address]
    • online: “vilpponen”
    • http://www.arcticstartup.com
    • http://www.gylleneskor.fi