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  1. 1. SEEDA Enterprise Hubs & Gateways Greg Ward MAR 2004
  2. 2. Five Objectives <ul><li>B2B Mentoring and networking </li></ul><ul><li>Tailored Business Support </li></ul><ul><li>Flexible Workspace </li></ul><ul><li>Knowledge base </li></ul><ul><li>Early stage finance </li></ul><ul><li>Hub Champions </li></ul><ul><li>Knowledge base </li></ul><ul><li>Flexible Workspace </li></ul><ul><li>Hub Director </li></ul>Four Components What are Hubs and Gateways? Incubation network
  3. 3. Gateways and Hubs – What is the difference? Hard to reach markets Knowledge base
  4. 4. Enterprise Gateways <ul><li>Hard to Reach Geographical Areas </li></ul><ul><li>Hard to reach communities </li></ul><ul><li>Business Link is the main partner </li></ul><ul><li>Early days </li></ul><ul><li>Six gateways covering, rural, deprived wards and, for one them, the black and ethnic community in Slough. </li></ul>
  5. 5. Total South East SMEs 253,000 South East SMEs with < 20 employees 241,000 The Enterprise Hub Network potential market i.e.start up and early stage South East knowledge-based SMEs < 20 employees 7,225 Target Enterprise Hub Network members (2007) 3,000 Who are the customers? The Enterprise Hub Network market share Target Enterprise Hub Portfolio members (2007) 300
  6. 6. Per hub Venture Deals Portfolio Members Sign Posting Network Members Associate Members 250 100 50 15 3 Companies / Region 5 000 2 000 1 000 300 60 The Market / Year Network Members Portfolio Members
  7. 7. Why? “ 3-4% of start-ups in a given period account for between 50% - 75% of all jobs created 10 years later” “ Start-ups are responsible for 55% of incremental and 65% radical innovation” DTI Innovation Report 2003
  8. 8. Risk Value Technical Market Business Hubs Manage Companies Through Development Process Idea Commercial Entity The Commercialisation Process What is The USP?
  9. 9. What is the regional value? Economic Feasibility Business Planning Financial support Team matching Market needs assessment Market plans Market valuation Sales and Distribution Market Diversification Technical Analysis Technical Feasibility Patent support Engineering Prototype Pre-production prototype Production Support Business Market Technical
  10. 10. What is the regional value? Will this product make a profit? Will it make sufficient returns to justify investment? Who are the management team? Does the product have a market? Who will buy it? Have you made sales? Are you growing market share? Is this product new? What will it cost to produce? Do you have a prototype? Do you own the IP? Business Market Technical
  11. 11. The Regional Value: The Funding Escalator for SMEs Start up 15-50k Banks, family business angles Start-up/early growth £50-150k Business Angels, Early Growth Fund, SMART, SGFL Early Growth/2 nd stage £150-500k Regional VC Fund, Business Angels (SGFL) Follow-up funding £500k-£2m Limited Venture Capital MBO/MBI, acquisitions £2m+ Institutional VCs
  12. 12. Hub Companies Mesophotonics based at the Southampton Hub is utilising Photonic Crystal technology to satisfy the demanding requirements of 21st Century optical engineers. Spinox, part of the Newbury Hub, is developing a spinning process to create high performance fibres from natural or artificial proteins based on the principles used by spiders and insects to create natural silk fibres I-TRAK, based at the Surrey Hub is the world's first technically integrated airline compatible instant notification luggage tracking tag.
  13. 13. The Regional Value: The Enterprise Hub Directors
  14. 14. A Hub or Gateway In Every Part of the Region . Eastbourne
  15. 15. What is the Role of the Flexible Workspace? Isle of Wight Southampton Newbury Solent
  16. 16. Flexible workspace vs Incubation Space Continuum Flexible Workspace Incubators/Virtual incubators Private Sector Private/Public Public
  17. 17. Regional Value? <ul><li>Economies of Scale </li></ul><ul><li>Very, very lean </li></ul><ul><li>Regional network of hub directors is the key </li></ul><ul><li>Collaboration </li></ul><ul><li>More surface area to absorb best practice </li></ul>
  18. 18. Where Next? Triple the Deal Flow By 2007 <ul><li>5 000 associate subscribers </li></ul><ul><li>2 000 network members per annum </li></ul><ul><li>300 portfolio members per annum </li></ul><ul><li>60 deals first round deals per year </li></ul>
  19. 19. How Should We Measure Ourselves? Significant Interventions by hub directors Network members Activity Significant Interventions recorded by hub directors Portfolio Members Activity Annual survey be research agency Customer Satisfaction Survey Outcome Recorded by hub directors New deals Outcome Recorded by hub directors No of entrepreneurs ready to pitch for investment Outcome Accounting firm does audit Equity Growth Impact Method Measure Type