F inland and the helsinki spring 090811
 

F inland and the helsinki spring 090811

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F inland and the helsinki spring 090811 F inland and the helsinki spring 090811 Presentation Transcript

  • Finland, Public Policy and the Helsinki Spring
    Steve Blank
    www.steveblank.com
    Twitter: sgblank
    Slides: www.slideshare.net/sblank
  • Corporate Lifecycle, Innovation, Startups, Founders, Ecosystem
  • Corporate Lifecycle, Innovation, Startups, Founders, Ecosystem
    Why Should I Care?
  • Why Start New Companies in Finland?
  • Because Old Ones Die
  • Corporate Lifecyclesare Getting Shorter
  • Disruption
  • Disruption
    Technology, Globalization, Regulation, Consumer Taste, Competition, etc.
  • Job Growth From Existing Companies willDecline
  • Job Growth Will Come From New Companies
  • Job Growth Will Come From New Companies
    Startups
  • Entrepreneurs are Coming to Finland to Start Companies
  • Entrepreneurs are Coming to Finland to Start Companies
    Helsinki Spring
  • First -What’s A Startup?
    Six Types of Startups
  • Startup
    Lifestyle Startups Work to Live their Passion
    • Serve known customer with known product
    • Get paid for their passion
  • Small Business
    Startup
    Small Business StartupsWork to Feed the Family
    • Serve known customer with known product
    • Feed the family
  • Small Business
    Startup
    Exit Criteria
    • Business Model found
    - Profitable business
    • Existing team
    < €100K in revenue
    Small Business StartupsWork to Feed the Family
    • known customer known product
    • Feed the family
  • Scalable
    Startup
    Large Company
    Scalable StartupBorn to Be Big
    Search
    Goal is to solve for:
    unknown customer and unknown features
  • Execute
    Search
    Scalable
    Startup
    Large Company
    Exit Criteria
    • Business model found
    • Total Available Market > €300m
    • Can grow to €50/year
    Scalable StartupBorn to Be Big
  • Scalable
    Startup
    Large Company
    Scalable StartupBorn to Be Big
    Execute
    Search
    • A scalable startup is designed to grow big
    • Needs “Risk capital”
    • What Silicon Valley means when they say “Startup”
  • Buyable StartupBorn to Be Sold
    Search
    Sell
    Scalable
    Startup
    €3 to 30M Acquisition
    Goal is to solve for:
    Internet, Mobile, Gaming Apps
  • Buyable Startup
    Search
    Sell
    Scalable
    Startup
    €3 to e0M Acquisition
    Goal is to solve for:
    Internet and Mobile Apps
    Sell to larger company
  • Large Company Sustaining InnovationInnovate or Evaporate
    Sustaining Innovation
    Transition
    Scalable
    Startup
    Large Company
    • Existing Market / Known customer
    • Known product feature needs
  • Large Company Sustaining InnovationInnovate or Evaporate
    Sustaining Innovation
    Transition
    Scalable
    Startup
    Large Company
    • Build
    • Partner
    • Acquire
    - IP- Talent
    - Product
    - Customers
    - Business
  • Large Company Disruptive Innovation
    New Division
    Large Company
    Transition
    Disruptive Innovation
    • New Market
    • New tech, customers, channels
  • Large Company Disruptive Innovation
    New Division
    Large Company
    Transition
    Disruptive Innovation
    • Build
    • Partner
    • Acquire
    - IP- Talent
    - Product
    - Customers
    - Business
  • Large Non-Profit
    Social Startup
    Social Entrepreneurship Startups
    • Solve pressing social problems
    • Social Enterprise: Profitable
    • Social Innovation: New Strategies
  • Each of these startups require different skills
    They Can Not Be Taught the Same Way
  • Each of these startups require different Government Policies
    They Can Not Be Built the Same Way
  • Scalable Startups Will Provide the Highest Job Growth
  • Scalable Startups Will Provide the Highest Job Growth
    They Require an Ecosystem You Do Not Have
  • Entrepreneurs
    Scalable Startup Ecosystem
    • Take risk
    • No funding
    • Building product
    • Thinking through business model
  • Entrepreneurs
    • skills training
    • mentoring = experience
    • networking
    • shared office
    • small funding ~ €30K
    • limited time ~ 6 months
    Incubators
    Scalable Startup Ecosystem
  • Angel Funds
    Entrepreneurs
    • it’s now a company
    • searching for a business model
    • limited funding ~ €300K
    • mentoring
    Incubators
    Scalable Startup Ecosystem
  • Venture Capital Funds
    Entrepreneurs
    Incubators
    Scalable Startup Ecosystem
    • Large funding > €2000K
    • Found a business Model
    • Scale
    • Multiple rounds of money
    • Startup Experience outside of Finland
    • Current policies in:
    • Capital Gains
    • Investment Incentives
    • Immigration
    • Cultural view of Risk and Failure
    All actively discourage Scalable Startups
    Startup Ecosystem Challenges
  • Startup Ecosystem Challenges
    • Government VC´s, Tekes officials and Incubators are paid by salary and consulting
    • Consultants are paid with Tekesmoney
    • Few are willing to change or criticize
    • All are on the wrong incentive system
    • Equity not cash
    • Missing experienced startup entrepreneurs
    • Tekes, incubators, VC’s, etc.
  • Each of These Steps Must Require Risk
  • Each of These Steps Must Require Risk
    For the Entrepreneur and For the Investor
  • Public Funding of Private Capital Does Not Work
  • Public Funding of Private Capital Does Not Work
    Each Party Needs to Have Equal Risk
  • The Goal of Public Funding Should be to Create a Private Capital Ecosystem
  • The Goal of Public Funding Should be to Create a Private Capital Ecosystem
    Fund and attract experienced Incubators & Venture Capital
  • ChallengeWhat Is the One Vision of Sitra, Tekes, Aalto, Finnish Technology Industries?
  • Find It and Put Public Funding for Innovation Out of Business
  • Thank You