INiTS Hightech Business Incubator - KulturImPuls · INiTS is a business incubator designed to...

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11.07.2012 1 INiTS Hightech Business Incubator © INiTS Innovation into Business Dr. Irene Fialka, CMC Managing Consultant 09.07.2012 [email protected] Introduction A company of:

Transcript of INiTS Hightech Business Incubator - KulturImPuls · INiTS is a business incubator designed to...

Page 1: INiTS Hightech Business Incubator - KulturImPuls · INiTS is a business incubator designed to improve the rate of startup success in Vienna by: • Identifying and investing in bright,

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INiTS Hightech Business Incubator

© INiTS

Innovation into BusinessDr. Irene Fialka, CMCManaging Consultant

[email protected]

Introduction

A company of: 

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Our mission 

Boost startup success in Vienna by helping founders conceive, launch and grow innovative startups

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INiTS Stakeholders:

Academia plus Business: basiNational program with the goal to exploit research results bysuccessful start‐ups/spin‐offs. 

INiTS Partners:

Universität fürBodenkultur Wien

INiTS in a nutshell

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INiTS in a nutshell

INiTS is a business incubator designed to improve the rate of startup success in Vienna by: 

• Identifying and investing in bright, ambitious people with great ideas

• Helping founders grow sustainable, high‐growth companies

• Providing expert training, critical objective feedback and peer support

• Facilitating valuable connections and relationships

Consulting

•Product & Service

• IPR

•Market & Competitors

•Business Modell & Organization

•Marketing & Sales

• Team & Management 

•Fundraising

•Business Development

Training

•Development ofbusiness concept

− Value Proposition

− Gatheringcustomerinsight

− Business model

•Professionalisationof start‐up teams

• Preparation forfollow‐on financing

•Pitchtraining

Financing

• INiTS subsidy

• INiTS loan

• Sourcing of additional

• Public funds

•Private capital

Networking

• Team building

• First customers

• Development partners

• Investors

• Experts

− in law, 

− marketing,

− tax,

− patent attorneys

− …

Infrastructure

• Office space

• IT infrastructureand support

INiTS Offering

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Pre‐Incubation The FutureIncubation

≈ 4 months End of 18th month18 months

Build & RefineWhere the magic happens:Business plan, toolsResourcesEvents, connections Acceleration

Scale & GrowINiTS alumni:International growthAccess to• Markets• Funds

Think & PlanOpportunity checkWorkshops:• Value proposition• Business modelIntellectual propertyFirst business concept

CheckProject advisory boardPitch-trainingPresentationExperts’ feedback and input

Selection

INiTS – The Process

114INiTS

Companies€ 96mPrivate Funding

€ 50m Public Funding

605New Jobs Created

154Patents Filed

68 Patents Approved

INiTS Results (cumulated since 10/2003)

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AplusB (Austria) INiTS (Vienna) % of AplusB

AplusB‐national fundsx 30.9 Mio. 6.6 Mio. 21,5%

AplusB‐regional fundsx 26.8 Mio. 5.4 Mio. 20,2%

Incubated projects/start‐ups+ 433 104 24%

Jobs created (inkl. founders)+ 1846 572 34%

Academic jobs (average)+ 71% 76%

Additional public funds f. Startups++ 74.1 Mio. 40.5 Mio. 36%

Additional private capital f. Startups++  109.4 Mio. 81.9 Mio. 75%

INiTS compared to AplusB

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x: AplusB-Budget 2002-2012 (s. www.ffg.at/aplusb)+: as of November 2011++: as of December 2010 („AplusB Leistungsbericht 2010“, www.aplusb.biz), more recent figures in other slides

AplusB ‐ INiTS

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• INiTS‘ basic budget € 11.1 Mio.

Ministry: € 6.36 Mio.City of Vienna: € 4.72 Mio.

• EU: € 0.75 Mio.• Founders: € 0.7 Mio.

Public Bodies

€ 5.5 Mio. Collaborative research

€ 96 Mio.Investors

Business AngelVenture Capital

Innovation for• SME/Industry• Consumers

Taxes*:2011: 56 Start-ups 13 Mio p.a.2017: 98 Start-ups 46 Mio p.a.Source: Joanneum Research

114 Start‐Ups605 Jobs

Innovations

Universities, R&D

€ 2.1 Mio.

€ 50 Mio.Public funds

• consulting• cash• infrastructure• network

Innovation ‐ Funds

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Complementary Public Funding

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departure

FFG Haus der Zukunft

FFG Basis Programme

FFG Start‐up

ZIT Call Life Science

ZIT callFemPower

AWS seed

Awspreseed

FFG Innovations‐scheck

waffInnovations‐assistent

IMPULSE Programm FFG FIT‐IT

FFG benefit

NÖBEG preseed

AWS double equity

FFG Feasibility

AWS Pro‐Trans

EU callsAwards

Investitions‐förderunge

n

European ICT Grand Price

Winner: Treventus€ 200.000,- Award

2007

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Saint-Gobain Global Innovation competitionfor innovative solutions in the fields of habitat, energy and the environment

Awardee: crystalsol, developing next generation photovoltaics

2011

Best Culture (Fashion, Art etc) Startup

Winner: Lookk

2011

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> 400 European Startups (IT, New Media)50 Startups Short List

Winner:

Hermann Hauser: “ .. mySugr which I think is an excellent project but too early for Amadeus. I wish you every success with this exciting company.”

2011

More INiTS‘ Stars

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• Treventus: € 200,000 (European ICT Grand Prize)• Abotic und LOOKK: € 50,000

Biggest Awards (in €)

• Ubimet: 100 (50 thereof in international subsidiaries)• ProtAffin: 26

Biggest Companies (Head Count)

• F‐star: € 33.5 Mio• ProtAffin: € 19.5 Mio

Biggest private funding

• F‐star ‐ Boehringer Ingelheim 2010: > € 1 billion• Marinomed ‐ Boehringer Ingelheim 2010: international sales licence of nasal spray

License dealsmit Big Players

• Senactive: bought by UC4, AmericaSuccessful Exit

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INiTS‐Team

Katharina Chmielewska: Assistant to CEO

Michael Rauhofer: CEO

Eva Krizsanits: Marketing, PR Peter Litschauer, IT Support

Markus Pietzka

Irene Fialka: Proxy,Managing Consultant

Andreas Gschöpf Michal Nespor

Peter Tschuchnig

Alice Wong

VC

Start‐up

ConsultantsKatharina Wieser

Opportunity?

© Irene Fialka/ INiTS 20

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Opportunity?

© Irene Fialka/ INiTS 21

„Opportunity Window“

idea resources

team timing

• What for would a customer buy our product? –

Customer‘s benefit, value created?• Who are our clients? What do they need? Unmet needs? Not realized needs?

• USP „Unique Selling Proposition“• What unique advantage can we offer our clients?

• Is the market attractive? • Size? Trends? Competitors? Suppliers? Legal/other limitations?

• Revenue Model: is the idea saleable/scalable?• How do we make money and how much (cover costs), growth potential, profit?

• Rights• Freedom to operate? How can we protect competitive advantage?

Opportunity ‐ Questions

© Irene Fialka/ INiTS 22

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• Does the idea fit? • My/our expertise, experience, situation, interests, goals?

• Can we recruit and motivate the right team?• Fill gaps? Are we able to share?

• Do we have access to important resources? • Suppliers, infrastructure, partners, consultants, ..?

• Do we have access to money?• How much, where from?

• Is there a reasonable correlation input vs. potential revenue? • State of development, time to market, costs, potential market?

• What are the risks? • e.g. Development, unknown competitors, Network‐effect, …

Opportunity ‐ Questions

© Irene Fialka/ INiTS 23

Entrepreneurs Initial Capital Today

Josephine Esther Metzner (1930s)

$100.‐ Estee Lauder

Roy and Walt Disney (1923)

$290.‐ Walt Disney Co.

43% (of 110 start‐ups)* < $10,000.‐ „Lessons from MIT and beyond“

How much money for a start?

© Irene Fialka/ INiTS 24

Source: E.B. Roberts, Oxford University Press 1991

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• Thomas Watson, Chairman of IBM, 1945, forecast of the world‐wide market: “There might be a need for perhaps four or five computers.”

• Ken Olsen (Digital Equipment Corp.) 1977: “There is no reason for an individual to have a computer in their home“

• Thomas Edison, 1910: “The nickel‐iron battery will put the gasoline buggy .... out of existence in no time.“

• The whole of Volkswagen factory and patents were rejected by Henry Ford II in 1945: “The Beetle is a bad design”

• Albert Einstein, 1932: “There is not the slightest indication that nuclear energy will ever be obtainable.“

Opportunity ‐ Recognition

© Irene Fialka/ INiTS 25

“I was seldom able to see an opportunity until it had ceased to be one.”

Mark Twain, 19th century

© Irene Fialka, INiTS 26

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• Which customer’s problem is to be solved?• How is the problem currently solved?• What is the innovation (compared to existing technologies)?• Unmet needs and USP (if possible quantitative benefit)• Current state of and future development• Portfolio• Production

Graphs and process charts can support understanding and  comparison!Solution is more important than technological detail!

Product/Service Idea

© Irene Fialka, INiTS 27

Customer’s point of view!! Distinct parameters must be• relevant to the customer• perceivable• preferable• ideally measurable

USP –Competitive advantage

© Irene Fialka, INiTS 28

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Customer Benefit Analysis

©„Blue Ocean Strategy“, W. C. Kim, R. Mauborgne, Harvard Business school press

High 10 Graph "Customer Value" Competitors

Valuation of Customer Ben

efit

………………………………..

………………………………..

…………………………………

…………………………………

5 …………………………………

…………………………………

…………………………………

…………………………………

…………………………………

Low 0 ……………………………………………………………

…………………………

…………………………

…………………………

…………………………

…………………………

…………………………

…………………………

…………………………

Customer Benefit

eg: Short‐Haul Airline Industry

0123456789

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pric

e

mea

ls

loun

ges

seat

ing

choi

ce

hub

conn

ectiv

ity

frien

dly

serv

ice

spee

d

frequ

ent d

epar

ture

s

Ange

bot /

Nut

zen

Wettbewerbsfaktoren

Strategy Canvas of Short-Haul Airline Industry

Southwest

other airlines

car

©„Blue Ocean Strategy“, W. C. Kim, R. Mauborgne, Harvard Business school press

Customer Benefit Analysis

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Protection – Overview

Quelle: www.wikipedia.de: http://upload.wikimedia.org/wikipedia/commons/d/d1/Geistiges_Eigentum_und_Wettbewerbsrecht.png

Intellectual Property

anti-trust law

Competition law

Trade secretsUtility model

Copyright

Plant breeders‘ rights

Industrial design

Trademark

IndustrialPropertyRights

Intellectual Property Rights ‐ IPR

IntellectualProperty

Potential protective rights

Invention Patent / Utility modelSupplementary protection certificateTrade secretCopyright (Software)

Know‐How Trade secretGeographical Indications

Creations CopyrightTrademarkIndustrial Design

Brand Marke/TrademarkMusterschutz/Industrial designHerkunftsangabe/Geographical IndicationsUrheberrecht/Copyright

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IP – WHY?

33 -

NH

NN

N

S

N

O

N

OO

O

1992: Pfizer-Patent1996: VIAGRA, CM Nr. 000233890

1998: Bayer-Patent2000: LEVITRA, CM Nr. 001481936

NNH

NC

N

S

N

O

N

OO

O

IP – WHY?

Manufacturer Pfizer Bayer

Website www.viagra.com www.levitra.com

Approved by FDA March 1998 August 2003

Patent Expires 2012 2018

2008 Revenue $1.934 billion worldwide (+10%)

$503 million worldwide(+2%)

Effectiveness Up to 4 hours Up to 5 hours

Common Side Effects

Headache, facial flushing, upset stomach

Headache, facial flushing, stuffy or runny nose, indigestion, upset stomach, dizziness

Source: http://www.accessrx.com/viagra-cialis-levitra-comparison-chart/

Eli Lilly

www.cialis.com

November 2003

2020

$1.445 billion worldwide (+26%)

Up to 36 hours

Headache, indigestion, back pain, muscle aches, flushing, stuffy or runny nose

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IP – WHY?

J.K. RowlingNet Worth (in $ millions): 1,000…Harry Potter, one of the mostsuccessful book franchises in history. …Rowling enjoys a cut of royalties and merchandising ……with the total gross for the four filmsalready released topping $3.5 billion. 

Source: www.Forbes.com: „The Richest 20 Women In Entertainment”

© Sipa Press

IP – WHY?

Biotech‐Deal: Bis zu einer Mrd. Euro für f‐star22.11.2010 | 18:25 | MARTIN KUGLER (Die Presse)

Das Wiener Biotechnologie‐Unternehmen f‐star geht eine große Kooperation mit dem deutschen Pharmakonzern Boehringer Ingelheim ein

Bild: (c) AP

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From the textbook… 

• Market• Interaction between supply and demand for 

goods/services• Sellers

• You and your competitors• Buyers

• Your potential clients

Market

Who are the Players in the Market?• Customers• Competitors• Suppliers• Legal authorities• Other stakeholders• Potential partners • ...

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This is your market!

CompetitorsClients

Incidence

Prevalence

Sales figures

Turnover figures

Registrations

Substitute productsSocial security reimbursement

SuppliersLicensers

Patent protectionClinical trials

Public opinion

Capital requirements

„force of habit“

Cooperations

Distribution channels

Price development

Definition “Own Market”

• Unmet needs, customer’s benefit

• Who are the customers?

• Which market segment is most interesting?

• Growth

• Trends within market or segments

• Competitors

• Strengths and weaknesses of portfolio

• Competitor’s pipeline

• IPR – freedom to operate?

• Substitutes

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Market Life Cycle

Source: Crossing the Chasm: Marketing and Selling High-Tech Products to Mainstream Customers or simply Crossing the Chasm (1991, revised 1999), by Geoffrey A. Moore

© Erik Johansson

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Crossing the Chasm

Key success factors• understanding the whole product concept• choosing a target market• positioning the product• marketing strategy: appropriate distribution 

channel and pricing

Source: Crossing the Chasm: Marketing and Selling High-Tech Products to Mainstream Customers or simply Crossing the Chasm (1991, revised 1999), by Geoffrey A. Moore

Market Research vs. Analysis

• Market researchGathering and collecting of market data• Targeted and systematic• Supports decision‐

making in enterprise planning

• Market analysisProcessing, analysing and interpreting of collected market data

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Business Model

© Irene Fialka, INiTS 45

Business Model

Architecture ofvalue creationValue proposition

What is the processof value creation?

Which steps are involved?

Which steps are done by the company or by who else?

Revenue Model

Which long‐termbenefits aregenerated by the companyfor customers and for stakeholders?

What are theactual sourcesof revenues?

Who paysfor what?

Sustainability!Scaleability!

46images by JAM

customer segments

key partners

cost structure

revenue streams

channels

customer relationships

key activities

key resources

value proposition

Business Model

46© Irene Fialka, INiTS

By A. Osterwalder et al.

http://en.wikipedia.org/wiki/Business_model

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how do you reach your customers?

47

spectacular offensive football

stadium

CUSTOMEROFFER

how do you reach your customers? (example)

club owned TV channel fans

mobile phone TV

advertising space & high visibility sales force advertisers

48

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how do you build relationships? 49

spectacular offensive football

personalized website (ticketing)

CUSTOMEROFFER

team blog (RSS) fans

Fan Shop

how do you build relationships with your customers? (example)

50

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how do you earn your money with this business model?

51

spectacular offensive football

ticket sales

FINANCEOFFER

TV channel subscriber fees fans

mobile phone TV subscriber fees

advertising space & high visibility advertising revenues advertisers

how do you earn your money with this business model? (example)

52

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53images by JAM

customer segments

key partners

cost structure

revenue streams

channels

customer relationships

key activities

key resources

value proposition

Business Model

53© Irene Fialka, INiTS

By A. Osterwalder et al.

http://en.wikipedia.org/wiki/Business_model

• Who are the founding team members?• Who is the lead entrepreneur?• Strengths and Weaknesses?• What is the motivation for the start‐up?• What are the individual goals?• Sharing and Responsibilities?• Shares?• Individual environment?• Individual exit scenarios?

Team

© Irene Fialka, INiTS 54

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• Working force and time• Motivation and drive• Know‐how• Expertise and experience• Creativity• Contacts and network• Representation• Capital• Social skills• …

Team ‐ Input

© Irene Fialka, INiTS 55

• Cash• Shares• Options• Deals• Ideally performance‐based remuneration• Reserve shares for future team members (key positions)

Team ‐ Costs

© Irene Fialka, INiTS 56

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How to get going?

Like that?

Like that?

Video: Steve Blank about customer development

Concept Test: Purpose

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© Erik Johansson

“The pessimist sees difficulty in every opportunity.The optimist sees the opportunity in every difficulty”

Winston Churchill (1874‐1965)

© Irene Fialka, INiTS 60