SEEDASEEDAEnterprise Hubs Enterprise Hubs & Gateways& Gateways

Greg WardGreg WardMAR 2004MAR 2004

Five ObjectivesFive Objectives

B2B Mentoring and networkingB2B Mentoring and networking Tailored Business SupportTailored Business Support Flexible WorkspaceFlexible Workspace Knowledge baseKnowledge base Early stage financeEarly stage finance

Hub ChampionsHub Champions Knowledge baseKnowledge base Flexible WorkspaceFlexible Workspace Hub DirectorHub Director

Four ComponentsFour Components

What are Hubs and Gateways?What are Hubs and Gateways?

Incubation networkIncubation network

Gateways and Hubs – What is the difference?Gateways and Hubs – What is the difference?

Hard to reach markets

Knowledge base

Enterprise GatewaysEnterprise Gateways

Hard to Reach Geographical AreasHard to Reach Geographical Areas Hard to reach communitiesHard to reach communities Business Link is the main partnerBusiness Link is the main partner Early days Early days Six gateways covering, rural, deprived Six gateways covering, rural, deprived

wards and, for one them, the black and wards and, for one them, the black and ethnic community in Slough.ethnic community in Slough.

Total South East SMEs 253,000

South East SMEs with < 20 employees 241,000

The Enterprise Hub Network potential market i.e.start up and early stage

South East knowledge-based SMEs < 20 employees

7,225

Target Enterprise Hub Network members (2007)

3,000

Who are the customers?Who are the customers?

The Enterprise Hub Network market share

Target Enterprise Hub Portfolio members (2007)300

Per hub

Venture Deals

Portfolio Members

Sign Posting

Network Members

Associate Members 250

100

50

15

3

Companies / Region

5 000

2 000

1 000

300

60

The Market / Year

Netw

ork Mem

bers

Portfolio M

embers

Why?Why?

““3-4% of start-ups in a given period account 3-4% of start-ups in a given period account for between 50% - 75% of for between 50% - 75% of allall jobs created 10 jobs created 10 years later”years later”

““Start-ups are responsible for 55% of Start-ups are responsible for 55% of incremental and 65% radical innovation”incremental and 65% radical innovation”

DTI Innovation Report 2003DTI Innovation Report 2003

Risk Value

Technical Market Business

Hubs Manage Companies Through Development Process

Idea Commercial Entity

The Commercialisation Process

What is The USP?What is The USP?

Economic FeasibilityBusiness PlanningFinancial supportTeam matching

Market needs assessmentMarket plansMarket valuationSales and DistributionMarket Diversification

Technical AnalysisTechnical FeasibilityPatent supportEngineering PrototypePre-production prototypeProduction Support

BusinessMarketTechnical

What is the regional value?What is the regional value?

What is the regional value?What is the regional value?

Will this product make a profit?Will it make sufficient returns to justify investment?Who are the management team?

Does the product have a market?Who will buy it?Have you made sales?Are you growing market share?

Is this product new?What will it cost to produce?Do you have a prototype?Do you own the IP?

BusinessMarketTechnical

Start up 15-50kBanks, family business angles

Start-up/early growth £50-150kBusiness Angels, Early Growth Fund, SMART,SGFL

Early Growth/2nd stage £150-500kRegional VC Fund, Business Angels (SGFL)

Follow-up funding £500k-£2mLimited Venture Capital

MBO/MBI, acquisitions £2m+Institutional VCs

The Regional Value: The Funding Escalator for SMEsThe Regional Value: The Funding Escalator for SMEs

Hub CompaniesHub Companies

Mesophotonics based at the Southampton Hub is utilising Photonic Crystal technology to satisfy the demanding requirements of 21st Century optical engineers. Spinox, part of the Newbury

Hub, is developing a spinning process to create high performance fibres from natural or artificial proteins based on the principles used by spiders and insects to create natural silk fibres

I-TRAK, based at the Surrey Hub is the world's first technically integrated airline compatible instant notification luggage tracking tag.

The Regional Value: The Enterprise Hub DirectorsThe Regional Value: The Enterprise Hub Directors

A Hub or Gateway In Every Part of the RegionA Hub or Gateway In Every Part of the Region

.Eastbourne

What is the Role of the Flexible Workspace?What is the Role of the Flexible Workspace?

Isle of Wight

Southampton Newbury

Solent

Flexible workspace vs Incubation SpaceFlexible workspace vs Incubation Space

Continuum

Flexible Workspace Incubators/Virtual incubators

Private Sector Private/Public Public

Regional Value?Regional Value?

Economies of ScaleEconomies of Scale Very, very leanVery, very lean Regional network of hub directors is the Regional network of hub directors is the

keykey CollaborationCollaboration More surface area to absorb best practiceMore surface area to absorb best practice

Where Next? Triple the Deal Flow By 2007Where Next? Triple the Deal Flow By 2007

5 000 associate subscribers5 000 associate subscribers 2 000 network members per annum2 000 network members per annum 300 portfolio members per annum300 portfolio members per annum 60 deals first round deals per year60 deals first round deals per year

How Should We Measure Ourselves?How Should We Measure Ourselves?

Significant Interventions by hub directors

Network membersActivity

Significant Interventions recorded by hub directors

Portfolio MembersActivity

Annual survey be research agency

Customer Satisfaction Survey

Outcome

Recorded by hub directors

New dealsOutcome

Recorded by hub directors

No of entrepreneurs ready to pitch for investment

Outcome

Accounting firm does audit

Equity GrowthImpact

MethodMeasureType