european innovation workshop edinburgh october 5/6/7 2005 edinburgh, october 5-7, 2005 start up...

EUROPEAN INNOVATION WORKSHOPEDINBURGH OCTOBER 5/6/7 2005

Edinburgh, October 5-7, 2005

Start Up Network and Start Up Providers

European Innovation Workshop


Obje

ctiv

es

Improve key services for start up creation and development at the European level

Incubate a sustainable body representing the SU community:a “voice of the European start up”

4 services to be designed+ 1 policy recommendation initiated by the networks


GM4Barcelona, April 28/29 2005Draft version of the 4 servicesDecision to support a policy recommendationExchange of experience with 3 PAXIS projects

GM5Dublin, October 20/21 2005Revised version of the 4 servicesUpdate on the policy recommendationDiscussion on the dissemination phase

Tim

elin

e

ValidationTesting phase until May 2006


Ach

ievem

ents

Entrepreneurs and providers working together for two years

Two way collaboration with PAXIS - Exchange of experience with the Validation Projects- Regular contributions to AM1&2- Support from the regions

Willingness of the networks to initiate and support a policy recommendation

Strong dedication to the project- in spite of duration- in spite of precarious and busy situation

Start up companies directly involved in the project


Added V

alu

eDemonstrated by strong dedication to the project (90% of the members stayed 2 years)

European added value: Four services evaluated by a pan-European network and implemented at European level

Potential impact of the Policy Recommendation: 100 B€/year


Invest AcademyManaged by EURADA/EBAN

NXD NetworkManaged by FSDA

FAMEManaged by CICOM

Fuzzy SetManaged by UTC

1 2

43

+


Service 1

Invest AcademyManaged by EURADA / EBAN

1


Background

- Absence of professional training on how to discuss issues concerning financing with potential investors

- Lack of knowledge about appropriate funding sources- Lack of experience on how to deal with financiers- Lack of understanding of what an investor looks for in a proposition- Inability to produce convincing business plans- Conflict between the needs of the financiers and the perceived needs of the

business.

= Create a comprehensive training & education support service for entrepreneurs on how to deal with different investors, including a quality check of their business plan


Invest Academy: ObjectivesFor the entrepreneur

• The main objective of the service is to advise the entrepreneur concerning the quality of his/her business proposition, business plan, its attractiveness to potential investors and lenders

• Help entrepreneurs understand the world of finance and learn how to deal with financiers

• Provide an active, personal and tailor-made coaching service to them

For the investor

• Enhance the quality of BP therefore the number of deals getting done

• Save time

> Bring investors and entrepreneurs together and help them understand each other.


Main features• Service provider• Level of implementation• Target groups• Organisation of the programme in 3 phases

1. Generic programme2. Adjustment period3. Pitch

• Performance indicators• Financial considerations• Next steps


Service 2

Non Executive Directors NetworkManaged by FSDA

The Trigger : “What Obstacles do You Perceive in Transforming your Technology or Product or Service Innovation, into a Commercial Success?”

2


(a)Encourage & stimulate the creation offeedback loops, clubs or platforms : facilitate exchange of experience

(b)Forum for companies to rate their

experiences with service providers e.g. law firms

(c)Create an international senior

sales/reseller team(Model berlin*startup)

(f)Establish knowledge website: "lessons learned" forum/database for sales related issues

(e)Provide access to a Business Angels networkfor very early stage finance

Main themeMain themeSet up a network of

experienced non-executive directors for management coaching

programmes

Main themeMain themeSet up a network of

experienced non-executive directors for management coaching

programmes

Overview of issues & implementation

Sales & Marketing Experience Exchange: e-Discussion Forum Best practice basis : “netpreneur.org” (USA)• Open to start-ups.(SUN only), 1/6/05• Managed, can be moderated.• Monthly Digests.• All traffic is archived: searchable by keyword.• SUP issued with archive passkey.• Link from SUN&SUP homepage

Sales & Marketing Experience Exchange: e-Discussion Forum Best practice basis : “netpreneur.org” (USA)• Open to start-ups.(SUN only), 1/6/05• Managed, can be moderated.• Monthly Digests.• All traffic is archived: searchable by keyword.• SUP issued with archive passkey.• Link from SUN&SUP homepage

NXD Matching Best practice basis : • “Higgs Review” (UK) + • “Réseau Entreprendre” (FR)

NXD Matching Best practice basis : • “Higgs Review” (UK) + • “Réseau Entreprendre” (FR)

LinkedIN SUNSUP group Best practice basis : “LinkedIn.com” (USA); + “GlobalScot” (UK)• Open to all SUN&SUP 1/9/05• Allows endorsement of service providers• Allows exploitation of diaspora to create sales leads

LinkedIN SUNSUP group Best practice basis : “LinkedIn.com” (USA); + “GlobalScot” (UK)• Open to all SUN&SUP 1/9/05• Allows endorsement of service providers• Allows exploitation of diaspora to create sales leads

Discrete contact brokering offered by FSDA

Discrete contact brokering offered by FSDA


Where are we? What next?

Discussion ForumPilot implemented June 2005

Monitoring reactions to, and usage of the Forume.g.: moderator needs to initiate discussions by questions

Linked InPilot implemented September 2005Experiences were gathered from existing users.“The jury is out” for new SUN&SUP members ….

NXD Matching Pilot to be implemented from October 2005• Structure defined, Aug. 2005 : main implementation from Oct.05 - will use same database as B2.1 “Discussion Forum” - criteria from A4 (“self-evaluation”) & B3 (“FAME”)• Finding appropriate NXDs to register will be key success factor• Linkage to “money” (sources of funds) may come naturally

Learning to reach excellence:


Service 3

FAMEManaged by CICOM

3


FAMEFAME Find the Appropriate Mentor Find the Appropriate Mentor

• Programme Creation of a free mentoring service to start-ups based in European Science & Business Parks.

• Mentor Definition A Mentor is a wise and trusted counsellor or teacher. He is not a consultant.

• Objectives Help young entrepreneurs & start-ups develop and succeed with the support of a mentor.


How does it work?How does it work?1. Start-up Entrepreneurs want to work with a mentor

2. Entrepreneur fills a registration form on the FAME platform

3. Creation of Advisory Board Mentors join FAME network

4. Application form examination by Advisory Board & mentors

5. Matching between start-up & mentor

6. Mentor contacts start-up

7. Mentor & start-up meet & work together on long-term

1) Start-ups and young

entrepreneurs

2) Start-up fills a mentor

registration form on the FAME

platform

3) Creation Advisory Board

(5 people)

Mentors join the FAME service

4) Advisory Board examines

requests companies’

needs, business plan,

development possibilities to

assess the most interesting projects

5) Matching between start-ups & mentors according to experience, fields, etc.

6) Selected Mentor contacts start-up

FAME Advisory Board approves and

gives contacts details of the

selected start-up to the mentor

7) Meetings & work together on long-term


FAME Success Factors & AdvantagesFAME Success Factors & Advantages

• Be a "win-win" situation for both parties involved

• Involve a long-term commitment • Rely on successful personal relationships and trust-building

• Financial consideration: free start-ups

• Door opening for start-ups: increase start-up success and business opportunities


Service 4

Fuzzy SetManaged by UTC

4


Fuzzy SET for High Tech Companies

Situation & Challenges

Key Factors Background

From SUN&SUP analysis

1) Lack of an effective and proven management team2) Difficulty in self-evaluation of own (own company)

situation and value

=> Need to diminish uncertainty=> Get a better understanding of the environment (Entrepreneur, Coaches, VC's, …)

=> For Europe, increase the number of Strong High Tech Companies


7 domains with different parameters relevant for evaluation : Technology, Product, Market, Management Team, Strategy, Marketing, Finance Holistic view

Strong uncertainty and interdependency of success factors

Credibility and transparency of evaluation

Instructive nature of feedback

Combining "Xtractis Generate" Fuzzy logic Model Software

Service Proposal : Fuzzy SET

Risk Analysis and Decision-Making ToolCreate a multi-lingual, European, Web-based

Fuzzy Self-Evaluation Tool


Fuzzy SET : Methodology used

Data collection by questionnaire Case description and 57 questions

Expert Rating workshop (18/3/2005) 16 European experts (SUPs and UTC partners) 960 domains of 40 cases evaluated

Model building by Xtractis® Generate 2 global models (whole set success

pre-selected variables success) 1 finance model (whole set success

finance variables failure)


Global Model

CharacteristicsO-Sa type Image

3 fuzzy rules (C1)21 input variables38 learning pointsRB Output Definition Range: [0 ; 10]RB Output Variation Range: [0.37 ; 8.07]Theoretical Output Variation Range: [0.57 ; 8.16]

Accuracy Performance (learning points)

Hamming's error and maximum error based on RB Output Definition RangeModel Output Variation Range included in RB Output Definition Range

Powered by Xtractis®, an IntelliTech [Intelligent Technologies] software.Copyright © 2002-2005 IntelliTech [Intelligent Technologies]. All rights reserved.

CharacteristicsO-Sa type ImagePredicted output: Global evaluation3 fuzzy rules (C1)21 input variables38 learning pointsRB Output Definition Range: [0 ; 10]RB Output Variation Range: [0.37 ; 8.07]Theoretical Output Variation Range: [0.57 ; 8.16]


Correlation coefficient 0,998Mean error (predicted - actual) 0,002Error standard deviation 0,079

Hamming's error 0,56%Maximum error 2,49%

Mean mapping degree (data) 0,590Min mapping degree (data) 0,327

Non mapped data count 0Mapped data 100%



Accuracy RobustnessCharacteristicsImage

12 points on the decision space bounds10% drawing lots

Robustness Performance (BOO)

Correlation coefficient 0,758Mean error (predicted - actual) -0,073Error standard deviation 0,763

Hamming's error 6,11%Maximum error 19,26%

Mean mapping degree (data) 0,586Min mapping degree (data) 0,402

Non mapped data count 0Mapped data 100%








21 variables to explain “global evaluation”


Next Steps … to perform the fuzzy SET

Xtractis® Model Building Strong model with new business Cases and new experts Uses based on Intellitech licences

Elaboration of prototype features

Creation of user interface : European front office

Advises for Entrepreneur

Study : are entrepreneurs able to "self evaluate" ??












Policy Recommendation

Towards an European SBAManaged by HTFED

+


The growth of European SMEsis blocked by a glass ceilingpreventing them to becomeglobal players

Access to large accounts is high tech start-ups’ main concern - Large companies- Procurement agencies- RTD programmes

European large companies are bigger than American ones and they are performing more R&D.The problem is they are not numerous enough:

2000 vs 3200

Not having enough large companies performing R&D has a direct impact on the Lisbon Agenda:2/3 of European R&D should come from the private sector


In USASmall Business Act(1953)40% public procurement reserved to SMEs

95 B$ in 2003

Regulating competition is necessary to foster the emergence of new European large companies- no further public funding- good for large companies (open innovation)- more capital raised = growth

In EuropeEuropean governments do not have the right to give European SMEs a preferred supplier status.

WTO treaty

Potential ImpactSME targets in public procurement for innovative products and services

100 B€ contracts


The SUN network online petition

SUN&SUP, a group of 15 European high-tech start-up companies advising the EC, is arguing that both the EU and national governments need to act NOW to ensure that European SMEs get equal rights in the new 10-year WTO treaty that is currently being renegotiated in Geneva for the period 2005-2015

750+ signatures

WE NEEDMORE !!!

SME

signatures

Associations

support

Governments

position

MEP

lobbying


17 signaturesfrom large companies, procurement agencies and large R&D programmesto be extended at the European level

with the support of OSEO

French good practice: the SME Pact- voluntary commitment from the large accounts- not only public procurement but private companies- monitored by an independent SME body

Two way street•Set of indicators to monitor the SME share in purchases•Services to identify relevant SMEs

Annual evaluation from 2006

Towards a European Small Business Act- renegotiation of the WTO Procurement Agreement- European Directive on the access of SMEs to public procurement of innovative products & services


+Violaine Menant

European Federation of high tech SMEs

+33 1 45 23 54 91

[email protected]

www.sunsup.org

european innovation workshop edinburgh october 5/6/7 2005 edinburgh, october 5-7, 2005 start up...

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