Building a world class Accelerator Program in A(alto) University context

QuestionThink of 3 most important factors that form

a startup ecosystem

TalentKnow-how

Internationality

Answers

InvestorsStartupsCulture

StudentsEntrepreneurs

University

UniversityCompanies

Government

1. Who are we today2. How & Why it came to be

3. A grain of research

1. Who are we today

The seed accelerator for the most promising startups from Northern Europe, Baltics and Russia

MeetupsTo get the word out and have everyone involved.

Warmups1 day coaching events to help as many startups as possible.

Accelerator6 week program brings together the 20 most promising

startups from Northern Europe, Baltics, Russia twice a year

5 batches of Startup Sauna16 million USD raised to date31 Warmups organized74 startups gone through Sauna 380 startups coachedAs of 2012 Spring

Accelerator

Internship

Co-workingIn the future...

1.

2.

3.

QuestionHow does your university support

entrepreneurship - 3 things?

AnswersEducationIncubation

Tech TransferStudent societiesWorking space

NetworksConferences

Funding

2. How & Why it came to be

First, everything was founded because of the cultural issue.

“Entrepreneurship is next to unemployment.”“When are you going to get a real job?.”

“You made it big, and have to show it small”“Yet again a company sold abroad”“I’d rather work for a big company”

“I’m a normal human, how could I create the next Apple?”“It’s too tough and uncertain to run a company”

Group of students with an ambitionNo examples, no money, no space

A perfect opportunity to bring together Aalto students before Aalto was formed

Founded 2009

Mission was to find serial entrepreneursInvite them to share their story and inspire

Start DOING, not reporting

Founded 2009

over 10 similar entrepreneurship societies bornover 300 events (keynotes, workshops, programs etc.)

over 500 students involved hands-onover 7000 students online

over 1 million € of funding raised

Founded 2009

Co-working space in Aalto University campus

An old industrial hall bringing together the students,

entrepreneurs and startup communities

A 2 month summer program for students and

researchers, from Aalto University

All you need is an idea and a team.

An internship program for Aalto University students

to go work in startups Helsinki / Silicon Valley.

Creates a stream of new talent. Latest, a YC funded

startup Kippt.

The vision grew bigger.

Let’s make our region the next technology hub.Let’s give everyone a reason to come out here.

BudapestHelsinkiKaunasKazan

KrasnodarMalmö

MoscowNovosibirsk

OsloOulu

RigaSt.Petersburg

TallinnTampere

TurkuShanghai

StockholmYekaterinburg

VilniusWarsaw

Growth entrepreneurship is not about money, office space, civil servant advice or lecturing.

Growth entrepreneurship is all about attitudes, knowhow, coaching, sharing, risk-taking, skills &

learning through failing.

Growth entrepreneurship is all aboutlearning from the best

that big hairy audacious vision, making a dent into the universe,

changing what is and creating what will be.

Growth entrepreneurship is tough.

2009 2010 2011

3. A grain of research

Open For Acceleration: The Case of Startup Sauna in Finland

DHRUV BHATLI, IRG, Université Paris Est, FrancePAOLO BORELLA, Boro Oy, Espoo, Finland

JUKKA KARIMAA, Aalto School of Economics, Finland

PAOLO BORELLA - Coach at Startup SaunaDirector at AppcampusFounder at Boro OyVice President at Fox Mobile Distribution GmbHDirector at Nokia, Portfolio Mgmt. for Service and Software GTM

AppCampus.fipaolo@appcampus.fi

Incubators can be broadly categorized as:

University based Incubators (UIS)Independent / Private “for profit” Accelerators (PAS)

University based Incubators (UIS)

Benefits: Extended support for long development ventures, e.g. Life sciences, tech. based startups

Provides cost free resources: Infrastructure, organizational services etc.

Disadvantage: Bureaucratic, No intensive Mentoring, No access to commercial networks

Independent / Private “for profit” Accelerators (PAS)

Benefits: Intensive coaching to help short development cycle ventures, e.g. Web, ICT, Gaming

More dynamic with easy access to markets, funds and commercial networks

Disadvantage: Takes equity or revenue share from the ventures, Accepts narrow venture types

1. What is the business model of SUS “non profit” accelerator?

2. How is the incubation process managed at SUS?

3. What is the value provided by SUS to participating NV's (acceleratee's)?

4. What are the adjustments made by SUS, as a regional accelerator to attract deal flow and succesfully sustain in the competitive

entrepreneurial landscape?

Open For Acceleration: The Case of Startup Sauna in Finland

STUDY FRAMEWORK

STUDY RESULTS

1. Accepts all venture types, SDC/ MDC/ LDC, diverse range of ventures2. 40% ventures (non service based)

3. Provides cost free resources: Infrastructure, organizational services etc. 4. Intensive coaching to help participating startups

5. Takes No equity or revenue share from the ventures

STARTUP SAUNA NOT A REGULAR PAS

STUDY RESULTS

PAS UIS

HYBRID POSITIONING

BENEFITS FOR ACCELERATEES

1. Connections to a growth network (including future investments)2. Validation of “graduated startup” for external actors (reduced contingency,

Vetted Idea)3. Part of a support community (Peer to Peer Network)

4. Time bound progress and growth objectives through intensive mentoring (Necessary push)

5. Improved team dynamics and performance6. Visibility, access to media and generate genuine interest

RESULTS IN NUMBERS

844 applications since start of operations in Spring ‘10 380 startups coached in Warmups and batches63 (7%) graduates from 5 batches83% increase in Startups headcount post Sauna73% Alumni have raised early stage funds16 Million USD raised from first 3 batches (38 Alumni)

DiscussionWhat are the key entrepreneurial issues in your university

and how to empower students to improve them?

Lessons

1. Serendipity

2. Empower the students

3. Darwinian evolution

Antti YlimutkaCaptain of Startup Sauna@startupsauna / @andynoseboneantti@startupsauna.com

One more thing...