The “money”. Is The “money”. Is it just the it just the “money”?“money”?

Young Young entrepreneurs in entrepreneurs in

Madrid Madrid Rafael MompóTelecoms EngineerUniversidad Europea de MadridLaureate International Universities

University of UlsterBelfast February 23rd 2009

BecauseBecause you you are are outstandingoutstanding

Final Final DegreeDegree Project Connected to a Start- Project Connected to a Start-up Incubatorup Incubator

• To develop the enterprising character of students

• The enterprising character– Initiative– Flexibility– Innovation– Dynamism and Energy

• UEM Positioning– To be that university that educates entrepreneurs

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MotivationMotivation

What is an Entrepreneur? What is an Entrepreneur? (Enterprising character)(Enterprising character)

• Entrepreneur that is a Businessperson (“traditional vision”)– Establishes their own company (start-up)

• Intra-entrepreneur

– Works with an entrepreneur style, but for another person (usually in big companies)

– Very appreciated professionals since this character is the cornerstone to the development of breakthrough innovations (both technology based or market-based)

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How can you learn and practice such How can you learn and practice such behavior?behavior?

Behave with ENERGYBehave with ENERGY

• Work hard• Work under pressure• Changing situations• Long working-days• Excellency when working in project• Offer themselves to participate in other

projects• Ability to pass from an action to another

action but maintaining quality and consistency in their work

• When things go bad… energetic engineers are capable of encouraging themselves… and also their fellows

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Behave with FLEXIBILITYBehave with FLEXIBILITY

• Change your personal behavior in order to achieve objectives… when there are difficulties or changes

• Propose solutions to problems derived from such situations

• Leadership is very valuable• Don’ t say “this problem is because of

the boss”… Better think about possible solutions

• Don’ t be afraid of problems, just face them!

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Behave with INNOVATIONBehave with INNOVATION

• Ability to get solutions to the problems… using new or different aproaches

• Envisage new business opportunities• Be always business-oriented in your proposals• Team person. Harvest team’s ideas and use that intellectual

richness to develop creative approaches in a continuous brainstorming exercise

• Spend time listening your team• Give a reward to the ones who elaborate good proposals

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Behave with INITIATIVEBehave with INITIATIVE

• Be prepared:– to start actions– to create opportunities– to improve results without an

external requirement (just because you want to improve everything)

• People whose results are above the expectations– They get into more duties than

necessary just to help the department or the company

• People that anticipate problems… and make actions to prevent them

• They are always searching for new ways of improving efficacy

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How can you learn and practice such How can you learn and practice such behavior?behavior?

¿What is an Entrepreneur?¿What is an Entrepreneur?

• Entrepreneur that is a Businessperson (“traditional vision”)– Establishes their own company (start-up)

• Intra-entrepreneur

– Works with an entrepreneur style, but for another person (usually in big companies)

– Very appreciated professionals since this character is the cornerstone to the development of breakthrough innovations (both technology based or market-based)

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Final Degree Project CounselingFinal Degree Project Counseling

• The student maintains regular contact with three types of counselors:

1. A professor at university, who coaches them and also provides technology advise

2. An advisor who helps writing up the Business Plan

3. A Business Angel that follows the evolution of the project and maybe will offer business opportunities after the project is finished

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OUR UNIVERSITY INCUBATOROUR UNIVERSITY INCUBATOR

UEMBusiness Angel

Investors Networks

FFF (Friends, Family, Fools)

http://blog.rafaelmompo.com/search/label/Artcube

Labor Market(Intra-entrepreneur)

The Money. Is it Just the Money?The Money. Is it Just the Money?

Who has the Money?Who has the Money?

The three “F”: Friends, Family, Fools

The bank, that loans

Informal capital

Private Equity

The three “F”: Friends, Family, Fools

The bank, that loans

Informal capital

Private Equity

The bank that gives you the moneyThe bank that gives you the money

In general… only if there is a mortgage over your home

Some banks have some money for start-up loans (but not too much)

In general… only if there is a mortgage over your home

Some banks have some money for start-up loans (but not too much)

Informal Capital (Business Angels)Informal Capital (Business Angels)

Non-professional investors

They offer

Business Knowledge about a particular sector

Management abilities and strategic vision

Contacts

Non-professional investors

They offer

Business Knowledge about a particular sector

Management abilities and strategic vision

Contacts

Private Capital (Private Equity)Private Capital (Private Equity)

This is also called “risk-capital”

Investments in enterprises that are not in the stock markets

High-Potencial enterprises

They only buy enterprises that are running

This is also called “risk-capital”

Investments in enterprises that are not in the stock markets

High-Potencial enterprises

They only buy enterprises that are running

Which is the entrepreneur’s Which is the entrepreneur’s objectiveobjective

Sell the enterpriseSell the enterprise

Which is your enterprise’s value?Which is your enterprise’s value?

• Proportional to the ability of the enterprise to make money

• INCOME / EXPENSES= much more than 1

• Proportional to the ability of the enterprise to make money

• INCOME / EXPENSES= much more than 1

The phasesThe phases

INCUBATOR

START-UP

R+D. Development of the concept of the business

Commercial development. Not too many sells

EXPANSIONThe company gives profits. Growth. International expansion

REPLACEMENT CAPITAL

It is time to harvest profits. One of the partners takes full control

Perhaps things are not doing well… and company model should be revised

BUYOUT

New partners that put new financial sources

Financing each phaseFinancing each phase

INCUBATOR

START-UP

EXPANSION

REPLACEMENT CAPITAL

BUYOUT

When is financing more difficult to When is financing more difficult to get ?get ?

INCUBATOR

START-UP

EXPANSION

REPLACEMENT CAPITAL

BUYOUT

R+D. Development of the concept of the business

Commercial development. Not too many sells

Who can help you?Who can help you?

INCUBATOR

START-UP

EXPANSION

REPLACEMENT CAPITAL

BUYOUT

Friends, Family, Fools

Government aids

Business Angels

Friends, Family, Fools

Government aids

Business Angels

Find a Business AngelFind a Business Angel

You Need a Business Plan- Good and Atracttive. Ask for help!

You Need a Business Plan- Good and Atracttive. Ask for help!

Find a Business AngelFind a Business Angel

First thing first- Fist steps with Friends, Family, Fools anf government aid… and a lot of effort and commitment on your part

First thing first- Fist steps with Friends, Family, Fools anf government aid… and a lot of effort and commitment on your part

Find a Business AngelFind a Business Angel

Networking - Spend your time maintaining and expanding your personal contacts. All of them should know you are seeking a Business Angel!

Networking - Spend your time maintaining and expanding your personal contacts. All of them should know you are seeking a Business Angel!

Find a Business Angel Find a Business Angel

Include a Senior in your project- With an excellent network of contacts.

Include a Senior in your project- With an excellent network of contacts.

Find a Business Angel Find a Business Angel

You can also develop the Business Angel Business Idea– You are the energy, and your partner is the experience.

You can also develop the Business Angel Business Idea– You are the energy, and your partner is the experience.

OUR UNIVERSITY INCUBATOROUR UNIVERSITY INCUBATOR

UEMBusiness Angel

Investors Networks

FFF (Friends, Family, Fools)

http://blog.rafaelmompo.com/search/label/Artcube

Labor Market(Intra-entrepreneur)

LaureateLaureate

LOENETHERLANDS GLION

SWITZERLAND

IFG, ECE, ESCE

FRANCE

UDLACHILE

UICR, UIP, UAM COSTA RICA &

PANAMA

HEADQUARTERSBALTIMORE, MD

20 Countries50 Institutions

500,000 Students

LES ROCHESJIN JIANG

CHINA

LES ROCHESSWITZERLAND

UEM, IEDE, CSESPAIN

LHE -MARBELLASPAIN

AIEP, UNABCHILE

UDLAECUADOR

UNITEC HONDURAS

AM, UNPBRAZIL

EUCCYPRUS

BILGITURKEY

KENDALL CHICAGO

ULACITPANAMA

UVM MEXICO

UPC, UPN PERU

LOEWALDEN

UNITED STATES

LIVERPOOLENGLAND

Universidad Europea de Madrid

Universidad Europea de Madrid

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BecauseBecause you you are are outstandingoutstanding