The “money”. Is it just the “money”? Young entrepreneurs in Madrid Rafael Mompó Telecoms Engineer Universidad Europea de Madrid Laureate International Universities University of Ulster Belfast February 23rd 2009

Because you are outstanding

Final Degree Project Connected to a Start-up Incubator

To develop the enterprising character of students The enterprising character Initiative Flexibility Innovation Dynamism and Energy UEM Positioning To be that university that educates entrepreneurs Motivation

To develop the enterprising character of students

The enterprising character

Initiative

Flexibility

Innovation

Dynamism and Energy

UEM Positioning

To be that university that educates entrepreneurs

What is an Entrepreneur? (Enterprising character) Entrepreneur that is a Businessperson (“traditional vision”) Establishes their own company (start-up) Intra-entrepreneur Works with an entrepreneur style, but for another person (usually in big companies) Very appreciated professionals since this character is the cornerstone to the development of breakthrough innovations (both technology based or market-based)

Entrepreneur that is a Businessperson (“traditional vision”)

Establishes their own company (start-up)

Intra-entrepreneur

Works with an entrepreneur style, but for another person (usually in big companies)

Very appreciated professionals since this character is the cornerstone to the development of breakthrough innovations (both technology based or market-based)

How can you learn and practice such behavior?

Behave with ENERGY Work hard Work under pressure Changing situations Long working-days Excellency when working in project Offer themselves to participate in other projects Ability to pass from an action to another action but maintaining quality and consistency in their work When things go bad… energetic engineers are capable of encouraging themselves… and also their fellows

Work hard

Work under pressure

Changing situations

Long working-days

Excellency when working in project

Offer themselves to participate in other projects

Ability to pass from an action to another action but maintaining quality and consistency in their work

When things go bad… energetic engineers are capable of encouraging themselves… and also their fellows

Behave with FLEXIBILITY Change your personal behavior in order to achieve objectives… when there are difficulties or changes Propose solutions to problems derived from such situations Leadership is very valuable Don’ t say “this problem is because of the boss”… Better think about possible solutions Don’ t be afraid of problems, just face them!

Change your personal behavior in order to achieve objectives… when there are difficulties or changes

Propose solutions to problems derived from such situations

Leadership is very valuable

Don’ t say “this problem is because of the boss”… Better think about possible solutions

Don’ t be afraid of problems, just face them!

Behave with INNOVATION Ability to get solutions to the problems… using new or different aproaches Envisage new business opportunities Be always business-oriented in your proposals Team person. Harvest team’s ideas and use that intellectual richness to develop creative approaches in a continuous brainstorming exercise Spend time listening your team Give a reward to the ones who elaborate good proposals

Ability to get solutions to the problems… using new or different aproaches

Envisage new business opportunities

Be always business-oriented in your proposals

Team person. Harvest team’s ideas and use that intellectual richness to develop creative approaches in a continuous brainstorming exercise

Spend time listening your team

Give a reward to the ones who elaborate good proposals

Behave with INITIATIVE Be prepared: to start actions to create opportunities to improve results without an external requirement (just because you want to improve everything) People whose results are above the expectations They get into more duties than necessary just to help the department or the company People that anticipate problems… and make actions to prevent them They are always searching for new ways of improving efficacy

Be prepared:

to start actions

to create opportunities

to improve results without an external requirement (just because you want to improve everything)

People whose results are above the expectations

They get into more duties than necessary just to help the department or the company

People that anticipate problems… and make actions to prevent them

They are always searching for new ways of improving efficacy

How can you learn and practice such behavior?

¿What is an Entrepreneur? Entrepreneur that is a Businessperson (“traditional vision”) Establishes their own company (start-up) Intra-entrepreneur Works with an entrepreneur style, but for another person (usually in big companies) Very appreciated professionals since this character is the cornerstone to the development of breakthrough innovations (both technology based or market-based)

Entrepreneur that is a Businessperson (“traditional vision”)

Establishes their own company (start-up)

Intra-entrepreneur

Works with an entrepreneur style, but for another person (usually in big companies)

Very appreciated professionals since this character is the cornerstone to the development of breakthrough innovations (both technology based or market-based)

Final Degree Project Counseling The student maintains regular contact with three types of counselors: A professor at university, who coaches them and also provides technology advise An advisor who helps writing up the Business Plan A Business Angel that follows the evolution of the project and maybe will offer business opportunities after the project is finished

The student maintains regular contact with three types of counselors:

A professor at university, who coaches them and also provides technology advise

An advisor who helps writing up the Business Plan

A Business Angel that follows the evolution of the project and maybe will offer business opportunities after the project is finished

OUR UNIVERSITY INCUBATOR UEM Business Angel Investors Networks FFF (Friends, Family, Fools) http://blog.rafaelmompo.com/search/label/Artcube Labor Market(Intra-entrepreneur)

The Money. Is it Just the Money?

Who has the Money? The three “F”: F riends, F amily, F ools The bank, that loans Informal capital Private Equity

The three “F”: F riends, F amily, F ools

The bank, that loans

Informal capital

Private Equity

The bank that gives you the money In general… only if there is a mortgage over your home Some banks have some money for start-up loans (but not too much)

In general… only if there is a mortgage over your home

Some banks have some money for start-up loans (but not too much)

Informal Capital (Business Angels) Non-professional investors They offer Business Knowledge about a particular sector Management abilities and strategic vision Contacts

Non-professional investors

They offer

Business Knowledge about a particular sector

Management abilities and strategic vision

Contacts

Private Capital (Private Equity) This is also called “risk-capital” Investments in enterprises that are not in the stock markets High-Potencial enterprises They only buy enterprises that are running

This is also called “risk-capital”

Investments in enterprises that are not in the stock markets

High-Potencial enterprises

They only buy enterprises that are running

Which is the entrepreneur’s objective Sell the enterprise

Which is your enterprise’s value? Proportional to the ability of the enterprise to make money INCOME / EXPENSES= much more than 1

Proportional to the ability of the enterprise to make money

INCOME / EXPENSES= much more than 1

The phases INCUBATOR START-UP R+D. Development of the concept of the business Commercial development. Not too many sells EXPANSION The company gives profits. Growth. International expansion REPLACEMENT CAPITAL It is time to harvest profits. One of the partners takes full control Perhaps things are not doing well… and company model should be revised BUYOUT New partners that put new financial sources

Financing each phase INCUBATOR START-UP EXPANSION REPLACEMENT CAPITAL BUYOUT

When is financing more difficult to get ? INCUBATOR START-UP EXPANSION REPLACEMENT CAPITAL BUYOUT R+D. Development of the concept of the business Commercial development. Not too many sells

Who can help you? INCUBATOR START-UP EXPANSION REPLACEMENT CAPITAL BUYOUT F riends, F amily, F ools Government aids Business Angels

F riends, F amily, F ools

Government aids

Business Angels

Find a Business Angel You Need a Business Plan - Good and Atracttive. Ask for help!

Find a Business Angel First thing first - Fist steps with F riends, F amily, F ools anf government aid… and a lot of effort and commitment on your part

Find a Business Angel Networking - Spend your time maintaining and expanding your personal contacts. All of them should know you are seeking a Business Angel!

Find a Business Angel Include a Senior in your project - With an excellent network of contacts.

Find a Business Angel You can also develop the Business Angel Business Idea– You are the energy, and your partner is the experience.

OUR UNIVERSITY INCUBATOR UEM Business Angel Investors Networks FFF (Friends, Family, Fools) http://blog.rafaelmompo.com/search/label/Artcube Labor Market(Intra-entrepreneur)

Laureate LOE NETHERLANDS GLION SWITZERLAND IFG, ECE, ESCE FRANCE UDLA CHILE UICR, UIP, UAM COSTA RICA & PANAMA HEADQUARTERS BALTIMORE, MD 20 Countries 50 Institutions 500,000 Students LES ROCHES JIN JIANG CHINA LES ROCHES SWITZERLAND UEM, IEDE , CSE SPAIN LHE - MARBELLA SPAIN AIEP, UNAB CHILE UDLA ECUADOR UNITEC HONDURAS  AM, UNP BRAZIL EUC CYPRUS BILGI TURKEY KENDALL CHICAGO ULACIT PANAMA UVM MEXICO UPC, UPN PERU LOE WALDEN UNITED STATES LIVERPOOL ENGLAND

Universidad Europea de Madrid

Universidad Europea de Madrid

Because you are outstanding