----------Rebooting the EU App Economy ---------

App - Innovation & Incubation Centres

Savania ChinamaringaFraunhofer Heinrich Hertz Institute,Berlin@SavaniaC

www.savania-china.com 13 November 2013

The Challenges:

A Complex Market

Funding /Investment

High risk -Rate of failure = 90%?

12 Currencies/Uncertain investment market

24 Official Languages

Low concentration ratio = multi-platforms

Android

BlackBerry

i-OSWindows

Other

0

50

100

Market-share of 2 main platforms - EU5* & USA

The Challenges:

EU5

USA

82 84 86 88 90 92 94

Android

BlackBerry

i-OSWindows

Other

0

50

100

Sept 2013

Source: Kantar

* Germany, Great Britain, France, Italy, Spain

ItalyUSA

Sept 2012

Multi-platform Example:

What’s Needed:

Business Skills Funding/Investment[easy access]

Technical Skills[Diverse]

Access a complex EU market and saturated

global market

Minimize risk levels for investors and enhance

success chances for entrepreneurs and

start-ups

To develop apps for a complex EU market and a more diverse

range platforms

The Solution:

Business Skills Funding/Investment[easy access]

Technical Skills[Diverse]

IICsApps

Innovation& Incubation

Centres

The Solution:

Provide Entrepreneurs and/or Developers with

Technical Skills[Diverse]

Business Development Skills

Target Market Segment for testing

Apps

University-Based ICCs

How it works:

How it works: Business Model:

How it works: Implementation

Country Coordinator

Advisory Group

IIC Coordinator

App Development Project Teams

How it works: Sustainability

Capital Set-up & Running Costs

Significantly low – universities already have space and resources

Manageable – students don’t expect to be highly paid for

gaining work experience

Pre-agreed Equity Buy Back

Long run

Why it works:

Winner How App Developers /Entrepreneurs

- Access to business development and marketing skills - Access to technical (coding) skills - Can develop and test their ideas at low risk and low cost - Learning environment enables innovation and experimentation - High chance of accessing funding

Investors (includes EC, governments, private, VC, Angel investors etc)

- Reduced investment risk because the can only fund tried and tested ideas

- Opportunity to invest in Apps and human capital (can bring along students who’d supported the App development and testing)

- Access to a broader community of developers that they may not currently access

University/College Students

- Great opportunity to gain practical experience and use their business and/or technical skills

- Great opportunity for meeting future employers and business partners (entrepreneurs and investors)

- Environment that natures creativity, innovation and experimentation

- Opportunity to create their own app ideas and test them Universities/Colleges - Practical/work-experience for their students

- Insight and research data and information (from trials, testing etc. Even failed Apps provide great learning material

- Potential for capital funding and equipment (from investors, successful start-ups, governments etc)

National/Regional Economies

- Creation of value and business growth - Job creation

Winners

Why it works: Losers

?Thank You:

Savania Chinamaringa

@SavaniaC

www.savania-china.com