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Representing Ireland’s Startup Sector
Growth & Innovation Through Embedding the Startup Mentality
Eoin Costello, Startup Ireland
Representing Ireland’s Startup Sector
Some of our projects include:
PreBudget SubmissionHelping provide an environment conducive to entrepreneurship
Guides for StartupsWe provide a one-stop portal containing: • Guides for startups websites for each city (such as
www.startupdublin.ie, www.startupcork.ie etc.). • Infographics on over 150 resources available to startups in Ireland • A Linkedin Group of 5,000 members.• Twitter account of 10,000 followers.
Corporate2Startups Working GroupBetter linkages between the startup sector and the multinationals located in Ireland is essential to help cross fertilisation and to grow world class startups.
About Startup Ireland…
Representing Ireland’s Startup Sector
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Representing Ireland’s Startup Sector
Representing Ireland’s Startup Sector
CHANGE IS THEONLY CONSTANT
HeraclitusGreek Philospher
Representing Ireland’s Startup Sector
“Hard to make time for innovation due to day to day
time pressures.”
“Staff raided from our innovation team for internal
projects.”
Representing Ireland’s Startup Sector
Target GrowthCash streams to support the projected growth
Where will they come from?What role will innovation play?
}2010 2013 2015
Ideas Concepts Dev Launch
$
Existing productssupplying existing cashstreams}
What happens to the Growth Aligned Pipeline?
Representing Ireland’s Startup Sector
Representing Ireland’s Startup Sector
Representing Ireland’s Startup Sector
Rank
2011 2010
Company R&D Spending
2011 $US Bil
Change from 2010
As % of Sales(Intensity)
1 6 Toyota 9.9 16.5% 4.2%
2 3 Novartis 9.6 5.5% 16.4%
3 1 Roche Holding 9.4 -2.1% 19.6%
4 2 Pfizer 9.1 -3.2% 13.5%
5 4 Microsoft 9.0 3.4% 12.9%
6 7 Samsung 9.0 13.9% 6.0%
7 5 Merck 8.5 -1.2% 17.6%
8 11 Intel 8.4 27.3% 15.5%
9 9 General Moters 8.1 15.7% 5.4%
10 8 Nokia 7.8 0% 14.5%
Representing Ireland’s Startup Sector
Company R&D Spending
2011 $US Bil
Rank As % of Sales(Intensity)
1 Apple 2.4 53 2.2%
2 Google 5.2 24 13.6%
3 3M 1.6 86 5.3%
4 Samsung 9.0 6 6.0%
5 GE 4.6 30 3.2%
6 Microsoft 9.0 5 12.9%
7 Toyota 9.9 1 4.2%
8 P&G 2.0 72 2.4%
9 IBM 6.3 17 5.9%
10 Amazon 2.9 48 6.1%
Representing Ireland’s Startup Sector
The 10 most innovative companies outperformed the top 10 spenders on R&D.
NORMALISEDPERFORMANCEOF INDUSTRYPEERS = 50
HIGHESTPOSSIBLESCORE= 100
LOWESTPOSSIBLESCORE = 0 REVENUE
GROWTH5-YR. CAGR
EBITAAS A % OFREVENUE5-YR. AVG
MARKETCAP
GROWTH5YR. CAGR
54
40
68 65 62
45
Representing Ireland’s Startup Sector
A company’s financial performance and innovativeness does not
correlate with how much it spends on R&D but rather how well it
executes its innovation strategy.
Representing Ireland’s Startup Sector
5 Rules of Thumb from Startups
1. When change is afoot, the balance sheet must come second to the investment.
Representing Ireland’s Startup Sector
“A startup is a company designed to grow fast.” Paul Graham founder of Y-
Combinator
Vs“Corporate organisations are about profit
maximisation and risk minimisation.” Peter
Drucker
Representing Ireland’s Startup Sector
Organisational culture eats strategy for breakfast
Peter Drucker
Representing Ireland’s Startup Sector
5 Rules of Thumb from Startups
2. Make calculated risk taking core
to your company culture
Representing Ireland’s Startup Sector
Representing Ireland’s Startup Sector
Need the innovation team to be inclusive both within the
company and the community
Representing Ireland’s Startup Sector
5 Rules of Thumb from Startups
3. Do More with Less
Representing Ireland’s Startup Sector
When you're operating on a shoestring budget, there's motivation
to be highly resourceful.
Stay resource poor on projects creates more innovative solutions.
Representing Ireland’s Startup Sector
5 Rules of Thumb from Startups
3. Speed
Representing Ireland’s Startup Sector
“Move fast and break things.Unless you are breaking stuff,you are not moving fast
enough.” Mark Zuckerberg
Larger companies are often weighed down by complex layers and processes, especially
when it comes to new thinking or innovation.
Separating employees into silos compounds this problem.
Representing Ireland’s Startup Sector
5 Rules of Thumb from Startups
4. Network
Representing Ireland’s Startup Sector
By consistently seeking real-time customer feedback, and carrying out constant market
analysis, startups are able to identify trends in their earliest stages.
Network with
customers, suppliers,
competitiors and
partners.
Representing Ireland’s Startup Sector
5 Rules of Thumb from Startups
5. Stay close to startups in your sector
Representing Ireland’s Startup Sector
There are a number of ways to do this…..
Salesforce nabs another Y Comninatorstartup in email contact manager Etacts
Representing Ireland’s Startup Sector
Representing Ireland’s Startup Sector
These days big corporatesfrom Siemens to Coca-Colato Disney have a startupaccelerator program
Representing Ireland’s Startup Sector
Representing Ireland’s Startup Sector
What’s different about Wayra…
● All startups located within the parent company offices.
● Global acceleration model - part of an international network.
● Championed within the parent multinational Telefonica.
Growing Ireland’sStartup Community
www.startupireland.ie
@StartupIrelandEoin Killian Costello