Mestrado Integrado em Engenharia e Gestão Industrial

Digital Ecosystems and Ecosystem ActorsDIGITAL BUSINESS ECOSYSTEMS

2015-16

António GriloAneesh Zutshi

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Startup Ecosystem Actors

Accelerators

StartupIncubators

Co-

Workspaces

Universities

Training

Providers

Angel

Investors

Venture Capital

Funds

Research

Centres

Online

Platforms- Talent

- Funding

Pre-

accelerators

Events,

Meetups

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Universities

Pre-accelerators Accelerators

Typical Engagement Stage

Angel Investor Venture Capital Funds

Incubators

Bank Loans

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Incubators

• Providors of office space to startups for a fixed duration, typically

more than an year

• Shared Work-Space or small offices

• Mostly Non-Profit or Publically Supported

• According to International business innovation association

• 54% are mixed-use

• 37% focused on technology business

• 6% focussed on service businesses

• Increasingly getting more active in organising events, mentorships,

and even connection to investors

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Startup Incubator

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Accelerators

• Run cohort based programs for startups for a fixed duration, usually a few

months.

• Provide intensive training and mentorship

• Work with the startups to significantly improve their product and business

model so that they can approach large investors.

• Some accelerators invest money in a startup in return for equity.

• Most programs end in a Demo Day event where investors are called.

• Many accelerators are struggling with developing their unique business

model.

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Accelerator Example – Startup Chile

• 5 Verticals

• Robotics

• Software

• Clean Energy

• Education

• Healthcare

• Started in 2010 with the support of Chilean Government.

• $40.000 of equity free funding

• 1 year commitment to stay in Chile

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• One of the earliest Accelerator, started in 2005, at Silicon Valley

• $120.000 for 7% Equity

• Twice a year intake

• Succesful Alumni

Accelerator Example – Y-combinator

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Online Platforms

• Used by accelerators to create online application forms.

• Startups can create profiles.

• Can be used to find talent, cofounders

• Free to use

• Match Angel Investors to Startups

• Help job seekers connect to startups

• Crowdfunding for creative startups

• Find a co-founder

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Events/Meetups

• Global Startup Community

• 185 Cities and 70 Countries

• World’s most influencial

startup tech event

• 2015 – Dublin

• 2016 - Lisbon

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Investment

• Angel Investors

• A wealthy individual who provides investment to a Startup

• Early Stage Investment

• High risk, high equity

• Venture Capital Funds

• Professionally Managed Investment Funds

• Larger Investment

• Often for Scale up stage

• Influence the management of the Startup

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Main Success Factors for Startup Ecosystem

• Educational Institutions

• General as well as specific skill based

• Entrepreneurial Culture

• Motivated Young People

• Risk Tolerance

• Creativity, Ambition, Drive

• Visible Success Stories

• Active Ecosystem Actors

• Sufficient Funding Sources

• Micro Loans, Grants

• Angel Investors, VCs

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• Human Capital

• Skilled Workforce

• Serial Entrepreneurs

• Government Support

• Easy Regulatory Framework

• Incentives. Eg. Tax Benefits

• Venture friendly legislations. Eg.

Bankruptcy, Contract enforcement,

Property rights, Labour laws

• Easy immigration policy for foreign

workers and entreprenerus

Other Key Success Factors for Startup Ecosystem

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• Customers

• Proximity to Customers

• Global Connectivity

• Easy Availability of Support Services

• Legal

• Accounting

• Advisors

• Infrastructure

• Telecommunications

• Transport and Logistics

• Energy

Other Key Success Factors for Startup Ecosystem

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Most Succesful Global Startup Ecosystems

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• Performance on the funding and exit valuations of startups headquartered in an

ecosystem

• Funding on VC investment in the ecosystem and the time it takes to raise

capital.

• Talent on the quality of technical talent, its availability and cost

• Market reach on the size of the local ecosystem’s GDP and the ease of

reaching customers in international markets

• Startup Experience on first-party survey data that is linked to success of

startups, such as having veteran startup mentors or founders with previous

startup experience

Digital Business Ecosystem Rankings 2015 Parameters

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Digital Business Ecosystem Rankings 2015

Source: Startup Compass

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Digital Business Ecosystem Rankings 2015

Source: Startup Compass

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Task for Next Class

• Identify the main actors in the Lisbon Ecosystem:

• Accelerators

• Incubators

• Co-work Spaces

• Angel Investors

• Venture Capital Funds

• Present them in a short presentation explaining their starting date,

and a brief profile.