This document summarizes the key factors for success for innovative start-ups in the United States. It identifies personal qualities like vision and passion, professional skills and experience, research and market knowledge, access to capital and resources, and a supportive ecosystem as fundamental. It also outlines some of the advantages the US has in supporting start-ups, like access to experienced professionals, a conducive regulatory environment, and capital availability. Finally, it discusses building similar capabilities to support innovative start-ups in Poland.

1. Success Factors for
Innovative Start-ups in
the United States
Francis J. Skrobiszewski
Director, US-Polish Trade Council
1 Forum Nowej Gospodarki
November 14, 2011
Krakow, Poland
Copyright © 2011. All rights reserved.

2. Fundamental Factors for Success
• Personal Qualities
– Vision, Commitment, Passion, Risk-Taking, Integrity
• Professional Skills and Experience
– Intellect, Managed Business, Worked in Given Industry
• Research and Applied Knowledge
– Knows the Technology and Studied the Market for it
• Capital and Complementary Resources
– Committed Stake, Investor Support, Mentor Assistance
• Supportive Ecosystem
– Enlightened Gov’t Administration, Trust, Teamwork
2

3. Challenges for Innovative Start-Ups
• Identifying a marketable technology
• Financing and executing R&D
-- Self
-- “Friends, Family and Fools“
-- “Angel Investors”
• Managing the business and tech
development
• Marketing the proven technology
• Growing the company
Conceiving and Building High-Tech
Firm Is “High Risk Business”! 3

4. US Advantages in Building
Innovative Technology Start-Ups
• Entrepreneurial Mindset and Availability of
Experienced Professionals to Help
• Conducive Laws/Regulatory Environment
• Established Mechanisms for moving
technology from laboratory to market/EXIT
• Availability of Capital and Systems to
Deploy It Professionally
Location – “About 75% of returns
come from w/i 25 miles of Stanford” 4

5. Entrepreneur-Innovators
Do Not Succeed in a Vacuum
• Market-Driven Demand
• Conducive Ecosystem/Inst Infrastructure
– Availability of skilled managers
– Good business practices of collaboration and TRUST
– Enlightened Gov’t providing conducive laws and
regs, judicial enforcement
– Supportive tax and IP Rights regimes
• Venture Capital Properly Employed
Compare Conditions in World’s
Most Successfull Economies 5

6. Key Pillars of Silicon Valley
• Universities (“Brainiacs”)
• Non-Profit Groups (Incubators, clubs, etc.)
• Start-Ups (Entrepreneurs seeking Profits)
• Service Providers and Other Experienced
Professionals – Serial CEOs, CFOs
• Venture Capitalists ($$$$$$$$$)
• An Ecosystem Rewarding Risk-Takers
Money Makes the World Go Around,
but Honesty/Integrity Are Essential 6

7. Fundamental Factors for Success
• Personal Qualities:
– Vision
– Commitment to Winning, Achieving Objectives
– Passion
– Willingness to Take Risks
– Honesty and Integrity
• Professional Skills and Experience:
– Management, Management, Management, . . .
– with a Track Record that demonstrates you can deliver
– Fundamental intelligence
– Knowledge of Industry and Understand that Market
– Disciplined work skills, Focus
– Realistic development plans
7

8. Fundamental Factors for Success
• Research and Applied Knowledge :
– Deep Knowledge of the technology, product, service
– Understanding of the REAL Market demand
– Where? What? Who? How?
– Creativity coming together with “in-depth research”
– Identifying Competitive Advantage:
• Unique Technology/Patents/Barriers/First Mover
• Capital and Complementary Resources:
– Self-fund commitments, FFF, Public Grants
– Investor Financing and “Common Vision” on Returns
– Not Just Money, but Mentoring advice/counsel on
• Good management practices (financial, HR, etc.)
• International contacts, marketing and sales
• IP protection support, etc., etc.
8

9. Fundamental Factors for Success
• Supportive Ecosystem:
– Availability of skilled managers
– Clustering / Communicating / Networking / Teamwork
– Good business practices and a “Climate of Integrity”
– Synergies created by “sharing” insights/ideas/inspiration
– “Risk-Taking” -- Is it rewarded or punished?
– Enlightened Government and Administration
– Conducive laws and regulations, judicial enforcement
– Supportive tax system
– Behavior IP Rights regime encourages or discourages?
– Allocation of “Rewards” among parties
Businesses Built by “Trial and
Error,” and a little Luck Helps! 9

10. Building Polish Capabilities for
Financing Innovative Start-Ups
• Extensive Polish Gov’t program of grant support
for SMEs through PARP, NCBiR, etc.
• Krajowy Fundusz Kapitalowy now financing jump-
start of Polish VC industry to fill “equity-gap”
– $300 million fund-of-funds, capitalizing new VC funds with
investment limit in innovative SMEs of 1.5 million Euros
– With KFK committing up to 50% of a VC fund’s capital, ~$600
million will be available to invest in Polish tech entrepreneurs
– $150 million already committed to 12 VC funds
– www.kfk.org.pl
• Strong, commercially-focused private equity
industry, jump-started by PAEF in 1990, now with
BILLIONS in capital, to finance growth
10

11. Challenges and Opportunities
• Speed is of the Essence – The Market does
not wait
• Building Entrepreneurial Climate of Risk-
Taking and Trust
• Creating the NEW is more important than
perfecting the OLD! Innovative Economy
requires Innovative Government
• Critical Mass of Capital injection is essential
to achieving results – PARP, KFK, Funds
“Commercial Objectives” Must
Ultimately Drive Decision-making

12. Technology Knows No Borders
You Are Positioned to Capitalize
on Opportunities the Future Offers
“Those who will not risk cannot
win” – Captain John Paul Jones, US Navy
Francis J. Skrobiszewski
skrobi@earthlink.net
mobile: +1-202-468-3374 12