1. 17 Jun, 201417 Jun, 2014
BUSINESS (https://e27.co/category/business) NEWS (https://e27.co/category/newsbites) RESOURCE
(https://e27.co/category/resource)
Echelon 2014: What do entrepreneurs need to rise
globally?
Alpesh Patel, Senior Dealmaker of UKTI evaluates the benefits that come with being UK-
based entrepreneurs and how they can succeed
ByBy Shiwen YapShiwen Yap (https://e27.co/author/shiwen)(https://e27.co/author/shiwen)
Alpesh Patel speaking at Echelon 2014 in Singapore
Constantly looking for outstanding entrepreneurs with exceptional intellectual property,
products, services, technologies and concepts, Alpesh Patel, Founding Principal at
private equity firm Praefinium PartnersPraefinium Partners, and Senior Dealmaker and Ministerial and
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2. Strategic Relationships responsible for India, China, Malaysia and Singapore, UK TradeUK Trade
and Investmentand Investment (UKTI), seeks out firms that can be grown into global companies, under
the Global Entrepreneur Programme (GEP).
Speaking at Echelon 2014Echelon 2014 (https://e27.co/tag/echelon/)(https://e27.co/tag/echelon/), Patel reflected on the
various companies that the GEP has brought into the UK and evaluated the benefits that
come with being UK-based entrepreneurs and what they need to succeed. He spoke on
the rise of global entrepreneurship and on what he termed ‘Entrepreneurial DNA’.
The UK’s appealThe UK’s appeal
He started his keynote by stating that most companies selected by UKTI are at least
three-years old, indicating relative maturity and stability as an organisation, given 90 per
cent of startups fold after three years. GEP’s value, according to him, lies in the benefits it
offered to companies. Chief among them is the strong brand value of being London-
based.
Other benefits include market access to the UK and the European Union. In terms of
market size, the UK is the fourth largest economy in the world (as of 2014) and the third
largest in Europe, after Germany and France. With the EU being the largest economy in
the world, this provides ample opportunities for UK-based startups, given the free trade
possible in an economy with a GDP worth £14 trillion and a larger population than the
USA.
He also noted that more global companies tend to base their headquarters in London,
increasing the brand strength and network effects associated with being UK-based.
Also Read:Also Read: Echelon 2014: Asia isn’t for grantrepreneursEchelon 2014: Asia isn’t for grantrepreneurs (http://e27.co/echelon-(http://e27.co/echelon-
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Successful ventures and fundingSuccessful ventures and funding
Going back to UKTI’s data, as well as those received from angel investors and VC firms,
he remarked that most successful entrepreneurs whom the GEP selected were university
graduates, observing that despite popular opinion, university dropouts like Bill Gates,
Steve Jobs and Mark Zuckerberg are exceptions.

3. On companies securing funds, he observed that it largely depended on their respective
industry and market capitalisation. Those startups that easily secured funds tended to be
in sectors “…where growth is through the roof”. He further added that there were certain
sectors that enjoyed ample growth, but where securing funds was challenging.
He noted that SaaS (Software-as-a-Service) and e-commercee-commerce
(http://www.e27.co/tag/ecommerce)(http://www.e27.co/tag/ecommerce)are growth areas where funding can be raised
easily, while cloud computing enjoys comparable investment. However, businesses
related to cloud hosting and infrastructure are unable to secure funding. 3D printing,
despite extensive positive media coverage, is a sector where fundraising is difficult.
Junk food and cybersecurity are performing well, with protein food supplements enjoying
good value and growth, as well as gambling equipment makers, informed Patel. Firms in
travel-related purchases (e.g. PricelinePriceline (http://en.wikipedia.org/wiki/Priceline.com)(http://en.wikipedia.org/wiki/Priceline.com))
are performing well too, while e-auctions (i.e. eBay) are facing performance issues. In
general, entrepreneurs and startups whose listed counterparts have risen in value, enjoy
greater chances of raising capital for their startups.
Sectors and entrepreneurial attitudesSectors and entrepreneurial attitudes
Patel then spoke of sectors which are new and therefore, unheard by many. He explained
about clean technology or cleantech, presenting the example of an invention by a NASA
scientist — a pocket-size air purification device that can filter out contaminants from a
room. Another sector he touched upon was water purification technologies, where
Middle Eastern firms invest heavily.
He claimed that most companies are founded by entrepreneurs with a background in the
same industry. He cited examples from the mobile gaming and e-commerce sector, where
a large number of companies and startups are enjoying considerable success.
Entrepreneurs’ attitudes are qualitatively evaluated by UKTI, explained Patel. The
research said that those who had most funding and success often had ambitions to go
global from the beginning, whereas those who expanded step-by-step had less
commercial success. For Asian companies, global ambition was crucial as their home
markets couldn’t fit their ambitions. Patel explained how they diversified risk by
expanding into the European and US markets, noting that for companies: “A lot of errors
are forgiven when you are swimming in an ocean of customers”.

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Sirius Programme and angel investorsSirius Programme and angel investors
Patel touched upon the support the UK provides in the Sirius ProgrammeSirius Programme
(http://www.siriusprogramme.com/)(http://www.siriusprogramme.com/). Under Sirius, enterprises are wholly owned by
graduate teams, with no equity taken through the programme. Founder shareholders
relocate to the UK, enjoying financial support, mentoring and advice. UKTI found that big
companies had a greater willingness to work with governments than smaller firms in
order to open doors.
He shared how Sirius granted equivalent support to smaller ventures as the government
did to larger firms, an example being how entrepreneurs were brought along with
ministerial trade delegations to other countries to support and explore market access.
This reflected the commitment of the government to “…attract entrepreneurial genes”.
Disclosing data from UKTI’s research, Patel said that 40 per cent of angel investors
suffered losses; 26 per cent had sold to third parties; 16 per cent sold to other
shareholders and only eight per cent enjoyed an IPO. Only 10 per cent of angels
interviewed made more than a 100 per cent return. Angels rejected 60 per cent of all
companies within 10 minute, 25 per cent within three hours and selected only two per
cent. The key was that 80 per cent of selected ventures wanted an opening. The winners
were those who showed the greatest initiative and drive.
In short, winners are those with the greatest drive, global ambition, at least a tertiary
education and who know their product and sectors in-depth, at a time when the listed
companies operating in that sector are growing. These takeaways are the key to the
success of entrepreneurial ventures.
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