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Patrick Bradley: Digital R&D in the Arts Annual Forum

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Patrick Bradley, the managing director for Station 12, presents to importance of backing risk

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Patrick Bradley: Digital R&D in the Arts Annual Forum

  1. 1. Backing Risk Patrick Bradley Station 12 3rd July 2014
  2. 2. Station 12 • “Spin out” from Ingenious Ventures • All verticals of creative industries • Our approach: Labs – research, innovate, invest Growth – later stage funding
  3. 3. Innovation & Risk Define our Terms: Innovation • Change, create, find a new solution to resolve an obstacle • “Original”, new ideas, creativity Risk • Danger, peril, exposure to danger • Proximity • Fear of failure or opportunity? • Perceptions • Flying is dangerous – Alcock & Brown
  4. 4. Who Is Taking Risk? • All of us! Life is uncertain • Entrepreneurs, pioneers, explorers • “Disruption”, fracture • Why risky - risk of failure, lack of capital, tech doesn’t work • Gradations of risk: “High” “Low”
  5. 5. Who Is Backing Risk? • Governments, banks, investors - gradations of “risk” ‒ Policy imperatives ‒ “No risk” banking ‒ Investors “quantified risk” • Incentives to take risk – Greed – Profit – Fiscal structures, SEIS, EIS, VCT, Entrepreneur’s relief, tax credits
  6. 6. Managing Risk • Evaluation of potential outcome of a proposed activity • Markets, people, structures, luck • Research – size, players, barriers, knowledge • People – track record, passion, vision, team • Structures – equity, debt • Portfolio theories • Cut and run • Luck – special sauce
  7. 7. My Experience • Uncertainty is impossible to foresee • Tech applications: binary outcomes – motion sensors • Content outcomes: 19/ Pop Idol • “No-one knows anything” – but people count!
  8. 8. “Is Risk Now Good?” • Change means growth? • Creating new abundance – sharing resources, intelligent data, replenishment • Challenges of the Global Market • Death by accountancy • Entrepreneurs are cool
  9. 9. Conclusion • Risk & Innovation – key to a healthy economy and democracy • Education & Culture • Back innovators, spread the risk, seek the upside

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