Creating Entrepreneurial

business know how for high

tech high potential business in

Networks

case: Venture Lab TwenteProf. Dr. Aard J. Groen

Head of department Entrepreneurship, marketing, strategy

and international management

Director NIKOS, Centre of Entrepreneurship and Innovation

a.j.groen@utwente.nl

VentureLab Twente: High-tech / High potential business development

This project is made possible by cointributions of the European Union and the Province of Overijssel

Why VentureLab Twente?

Motivation of VentureLab promotors

• Economic development & Employment

• Need for fast growing successful companies– Increase average of 10 fte / spin off company

• Research on entrepreneurship (Nikos)

This project is made possible by cointributions of the European Union and the Province of Overijssel

Entrepreneur

and

Enterprise

Not market

oriented

Scope:

from idea

to

Strategy

Social

Network-

Contacts

Skills:

Patterns of

Organisation

Scale:

Economy:

Financial

means

• Ideas

• Assessing the opportunity

• Strategic processes

• Business plan

• Culture, values, norms

• Facilities

• Personelarrangements

& Systems

• Knowledge

Contacts with:

• Clients

• Suppliers

• Experts

• Colleagues

• support agents

• Own capital

• Bridging development

period

• Financing investments

- Venture Capital

- Loans

Mono-disciplinary

teams (tech)

Management skills

Strategic drift

technology/market

Small ambition

“Death valley”

Long time to market

High costs-high risk

Little VC available

Academic networks

too little market

networks

Balancing weak-

strong ties

Reasons for small growth

Support instruments

Entrepreneur

and

Enterprise

Coaching,

Training

& Courses

Scope:

from idea

to

Strategy

Social

Network-

Contacts

Skills:

Patterns of

Organisation

Scale:

Economy:

Financial

means

• Culture, values, norms

• Facilities

• Personelarrangements

& Systems

• Knowledge

• Ideas

• Assessing the opportunity

• Strategic processes

• Business plan

Contacts with:

• Clients

• Suppliers

• Experts

• Colleagues

• support agents

• Own capital

• Bridging development

period

• Financing investments

- Venture Capital

- Loans

Knowledge & Space

Organisational

support

Strategic Coach

Soft loans

Participation

Contacts

Brokerage

1. Entrepreneur high ambition

2. Product and market with large

(world) potential

3. Multi disciplinary entrepreneurial

team from beginning

4. Sufficient venture capital in early

phase

Four success factors for growth*(Leuven, Stanford, Cambridge)

* Martijn Enter; Identifying factors that contribute to

high-groth knowledge intensive ventures; Nikos ,

February 2006

What is VentureLab Twente? – the Design

VA

LU

EC

RE

AT

ION

Training programFollows the value creation processin relation to 4S model and 4 teamroles

Opportunity

recognition

Opportunity

preparation

Opportunity

exploitation

CTO/COO

Culture Capital

CFO

Economic Capital

CEO

Strategic Capital

CMO

Social Capital

Entrepreneur

and

Enterprise

Entrepreneuria

l

and market

orientation

Scope:

from idea

to

Strategy

Social

Network-

Contacts

Skills:

Patterns of

Organisation

Scale:

Economy:

Financial

means

• Culture, values, norms

• Facilities

• Personelarrangements

& Systems

• Knowledge

• Ideas

• Assessing the opportunity

• Strategic processes

• Business plan

Contacts with:

• Clients

• Suppliers

• Experts

• Colleagues

• support agents

• Own capital

• Bridging development

period

• Financing investments

- Venture Capital

- Loans

COO / CTO

Balanced teams

operations organized,

Q-systems in place &

product offering

CEO

Clear Growth ambition

Strategic focus

• developed T-M-O

• strategic process/network

• path of value creation/exit

CFO

Managing cash flow rounds

of investment

FFF

Venture capital

(Formal-informal investors)

CMO

Strong connections with

market (suppliers-clients)

Managing strong & weak ties

(in business & academic

world)

Characteristics of VentureLab Twente Ventures

VentureLab Twente characteristics

• Focus on high-tech / high growth

• From early phase to business realisation• Opportunity recognition

• Business Model

• Business Plan

• Company start up

• Building entrepreneurial competences

• Building entrepreneurial team

• Worldwide networking

• Group approach in own office facilities

Training Program

Lecture

Project

Staff &

Entrepreneurs

‘Normal’

Company

Advisors

Technology

Screening

Process

Research

Institutes

& Firms

Participants

100 Interested

Individuals

Screening

Process

Entrepreneurial

teams

Instructors Follow up

(support)

Network (eg. VC’s)

Selection & Matching

High

Growth

Company

60 Selected

Individuals

Month 1 Month 7 -12Month 2 Month 4 - 6Month 3

TOP

Design VentureLab Twente

e.g. TOP

+ Contact VC

Visit

Silicon Valley

• 12 groups of 30 participants: 360

• 210 new companies started (58%)

• including 30 companies with high growth potential (8%)

After 5 years

• 157 companies survive (75%)

• including 15 high growth (50%)

• Ca 2850 new jobs

• including 1500 in high growth companies

Expected Results of Project

Unique approach

• Early stage support from (international) trainers, coaches and experts

• Building of and working with multidisciplinary entrepreneurial teams

• Being part of a dynamic and large technology entrepreneurial community, including connection to an interesting technology base and facilities