Ict europe policy


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  • A way of describing the odds: Edmund Phelps, a Columbia economics professor and Nobel laureate, described the odds in his new book, “Mass Flourishing: How Grassroots Innovation Created Jobs, Challenge and Change” as “from 10,000 business ideas, as 1,000 firms are founded, 100 receive venture capital, 20 go on to raise capital in an initial public offering, and two become market leaders.” 
  • According to the venture impact study, IHS Global Insight, originally VC-backed companies accounted for 11.87m jobs and over $3.1 trn in revenue in the US in 2011—accounting for 21% of GDP and 11% of private-sector employment. At Index, our portfolio companies alone have generated $4bn worth of revenue, while growing on average by more than 75%, creating 20k jobs with 1k positions currently openPeople say VC doesn’t add anythign but maybe when we look back on this cambrian explosion of innovation from 1960s (semis) to 2020s (cloud connected services in every sector) – the broadscale application and understanding of venture economics will be the true legacy of venture rather than Apple, Cisco, Facebook, Google, Microsoft, Salesforce, Skype and TwitterDATA: https://docs.google.com/a/indexventures.com/spreadsheet/ccc?key=0ArWfM5OOjmKZdDJ4QWcwcHh5UFZSYm9KSENDRHBONWc&usp=drive_web#gid=0
  • What did these governments spend in a year on DEFENSE, EDUCATION, HEALTH:See google doc for this data: https://docs.google.com/a/indexventures.com/spreadsheet/ccc?key=0ArWfM5OOjmKZdDJ4QWcwcHh5UFZSYm9KSENDRHBONWc&usp=drive_web#gid=1
  • € 3.6bn raised the 2010 fundraising low of the past five years. 102 venture capital funds raised new capital in 2012 compared to 152 in 2011. For the fourth year running government agencies attributed a new high of 40% to venture capital fundraising coming from 33% in 2011.
  • venture capital invested decreased year on year by 14% to 3.2 bn2900 startups
  • Seedcamp stats:93 companies since 2007- 83% start-ups raised capital$120m total raised 76 operational6 acquired11 closed850 jobs createdYC stats:511 companies since 2005Average value of a YC-financed start-up is $22.4m37 start-ups have either sold for, or are now worth, more than $40m.If you take last two years of classes out of these numbers (given that it takes time for a company to grow), and you look at 300 companies in YC instead of 511, that means the odds of +$40m success are about 1 in 10.As of 2011, YC had 25 companies of 316 acquired. Of these, 5 exits for over $10 million, and the combined value of the top 21 companies was $4.7bn.TechStars stats:256 companies since 200771% companies funded$400m raised204 operational24 acquired28 failed- 1,882 jobs createdBased on new realities:- Cost of company creation - cloud/SaaS, open source, platforms, Capital efficiency of scale up -> Global markets (talent, customers, finance)YC numbers in 2011: http://ycombinator.com/nums.htmlWAYRA stats: (297 start-ups, €9.7m total investment, 70% commercially trading)
  • Kickstarter:$810m total dollars pledged49,355 successfully funded projects4.9m total backers1.4m repeat backers11.2m total pledgesFunding Circle: £156m successful loans£39m principal repaid£113m loans outstanding, with 98.5% repayments coming in on time5.8% average net return (before tax)55k people in UK have joined to lend to businessesAngelist: $200m investments$186m through introductions$14m through direct “invest online” product21k investors on platform1,300 companies successfully raised funding
  • Ict europe policy

    1. 1. the key challenges of ICT entrepreneurship in Europe @Digital Agenda Assembly Brussels, 2013 Credits Saul Klein template EVCA, AIFI, Klein for data
    2. 2. nice to meet you Class 1967 Università di Torino, drummer/surfer 1995-97 Italia online 97/98 Lycos 99/02 Vitaminic, founder CEO 03/04 Buongiorno Vitaminic, M&A 05/06 Kite-surfing / sabbatical /angel investor 07/founder and chairman of dpixel www.dpixel.it Part time journalist and blogger (Sole 24 Ore / Wired / dgil.uz / CheFuturo) Kauffman Fellow (KFP Class 14) Mentor Fullbright, Startup Sauna (Helsinki) Teacher @LED Luiss, TechNest/Unical
    3. 3. What we do @dpixel: - Acceleration (Barcamper >1.000 applications) - Seed fund (9m euro) - Advisory: Working Capital/Telecom Italia (3k applications), StartCup Calabria, Sinnova, YouthPark, NIDI, Digital Energy
    4. 4. How does the European innovation ecosystem looks like?
    5. 5. loosely connected small islands
    6. 6. 22 actions in 5 categories: training, access to talent, access to capital, data policy, leadership
    7. 7. What we aim for
    8. 8. Some home truths about business of innovation
    9. 9. Professor Edmund Phelps Less than 10% of business ideas even get started Nobel Prize in Economics 2006 10k business ideas 1k firms started 100 VC funded 20 IPO 2 market leaders
    10. 10. 55% of US venture capital investments are written off 50 45 40 35 30 25 20 15 10 5 0 x<0.5 0.5<=x<1 x=1 1<x<2 % Cost % Value 2<=x<5 x>=5
    11. 11. 62% of EU investments are written off 60 50 40 30 20 10 0 x<0.5 0.5<=x<1 x=1 1<x<2 % Cost % Value 2<=x<5 x>=5
    12. 12. But the capital which survives, backs businesses accounting for 21% of US GDP….. 1978 1981 1987 1995 1995 1997 1999 1999 2005 serving >1bn customers creating 440k new jobs with $545bn in new annual revenue and $1.4tn in new market value Source: HIS Global Insight
    13. 13. In fact if you have something to offer there are now 3bn people connected to you 4,2 trillion $ market opportunity
    14. 14. In Europe we are starting to build waves of similar dimensions
    15. 15. And we have a generation with nothing to lose….
    16. 16. 0,02% of GDP invested in venture capital in 2012 (0,17% in the US)
    17. 17. Some venture stats of Europe
    18. 18. European outlook 0,17% in the US (10x Europe) 35x difference
    19. 19. 3.6 BN raised in 2012 by 102 new venture funds (it was 5.2 BN in 2011)
    20. 20. 1,9BN divested by venture in 2012 (1.000 companies) 5 IPO 159 trade sale 300 write offs/sale to mgmt
    21. 21. 3.2 BN invested in 2012 (-14%) 2.900 startups funded by 556 firms 0,1BN seed 1,8BN early stage 1,3BN later stage .
    22. 22. 353 seed startups > 280k average 1.796 early stage > 1 mln average 839 later stage > 1,5 mln average
    23. 23. Plus a new generation of angels, superangels, angel networks, accelerators, seed funds, incubators
    24. 24. And a new generation of funding and crowdfunding platforms Creative & Consumer Electronics Microfinance Startups SMEs
    25. 25. Thank you gianluca@dpixel.it Twitter: dgiluz Blog: dgil.uz