Accelerating innovation process of start-ups (ISPIM2015)
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Transcript of Accelerating innovation process of start-ups (ISPIM2015)
VTT TECHNICAL RESEARCH CENTRE OF FINLAND LTD
Accelerating innovationprocess of start-ups- Business Incubator and accelerator services in Finland
ISPIM conference14-17.6.2015 Budapest
Marjaana Komi, Kaisa Still, Arto Wallin,Päivi Jaring
223/11/2015 2
Setting the scene
High-tech start-ups and growth companies as basis foreconomic growth in Finland
Significant governmental funding support for creation of newtechnologies and encouragement for technology transfer
Goal: new innovations, jobs, and international competitiveness
Proven by studies high-tech start-ups have limited survival rateIn Finland, small domestic market offers limited growth potential
Start-ups are often set up by skilled engineers with exiguousbusiness development and marketing knowhow
323/11/2015 3
Related research
Australian study (204 SMEs)Focus more on innovation generation than commercializationFunding challenges biggest problem
Disproportion with offered and needed support
Finnish study of commercial success factors and challengesMarketing, financing, networking, and business environment
Recent study on benefits of seed accelerators (51 start-ups)Mentorship, coaching and feedback (>80%)Network, alumni and prestige valued high
Study among European SMEs in 27 countries puts forward sixinfluencing factors for innovations of commercialization
Government policy, memberships in a cluster or a network, resourcesand capabilities, company strategy and capability, competition, andindustry sector itself
423/11/2015 4
Research question
To identify and classify available Finnish business incubator andaccelerator services and assess their use from the perspectiveof Finnish high-tech start-up entrepreneurs
Research questions:What are the available business incubator and accelerator servicesfor start-ups in Finland?How have these services been utilized by start-ups?
523/11/2015 5
Research design
Existing servicesDiscovery of Finnish business incubator and accelerator services
Expert knowledgeInternet search and literature review
Utilization and experiences of these servicesGathering experiences of Finnish high-tech start-ups
Semi-structured face-to-face interviews in the SLUSH conference2014 in Helsinki28 start-ups were selected to analysis of 38 interviewed
Excluded: non Finnish companies, companies only in the ideation phase,or no international business objectivesSlush database was used to analyze background data of companies
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Business incubators
Business incubator is an umbrella concept for idea labs, venturelabs, business centers, hubs, technopoles, hatcheries etc.Business incubators versus business accelerators
Theodorakopoulos et al. 2014The evolution of business incubators
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Classification of incubator services
Three classes adapted from infoDEV (2012)
1. Seed capital providersFocus on capital investments, often augmented with brand buildingand sometimes with mentoring
2. Network boostersHosting regular events under the certain theme or topic
3. Hand-holdersConventional actors offering business development services,training and mentoring
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Network boosters in Finland
“better networking with customers would be important”“we are looking for proper international networks”“we need to have a distribution partner network”“better networking with similar start-ups”“scaling of business requires lots of contacting and networks““we need better networks and mentors for international growth”
Four actors operating in Finland, MobileMonday (private),FinNode and TeamFinland (Governmental) and EnterpriseEuropean Network
The voices of the interviewees regarding networking
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Network of network boosters in Finland
Enterprise Europe NetworkFinNode TeamFinland
Finpro
TekesSitra
VTT
Finnvera
Finpartnership
Chambers
Culture and science institutes
Ministries
Turku Science Park
Finnfund
ELY centers
Finnish Industry Investment
Academy of Finland
MoMoFinnishstart-ups
INTERNATIONAL MARKETS
One oftheseincubatorswerementionedto be used
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Use of seed capital providers in Finland
Table 1 Funding sources of the start-ups
Capital providers Granted funding % of all granted % of all granted
Governmental 48,9%Tekes 17 37,8%ELY centers 3 6,7%Finnvera 2 4,4%Sitra 0 0%
Private 51,1%Venture capitalists 12 26,7%Angel funders 6 13,3%Nokia Bridge programme 3 6,7%Indiegogo 2 4,4%
Total 45 100% 100%
Finnish Seed capitalproviders
Over 70 venturecapitalists3 business angelassociations5 governmentfunded bodies
All Health-care companies (11) most successful attaining funding
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Use of Hand-holders
Table 2 Hand-holders and supporters mentioned to be utilized by start-ups
Actors Time mentioned % of all
Advisors, advisory boards 9 37,5%Aalto university based units 5 20,8%Reactor Polte 2 8,3%EIT ICT Labs 2 8,3%Others*) 6 25,0%Total 24 100%
*) Accelerando, FV growth couching, Health SPA, Starttaamo, TE center, Veturi Venture Accelerator
Finnish Hand-holdersCity based:
- Turku Science Park- BusinessOulu
Governmental:- Finpro- Viexpo
- Aalto University- EIT ICT Labs
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Concerns of the high-tech start-ups
Table 3 The main concerns of the start-ups
Concern Time mentioned % of all
Funding 22 43,1%Networking 11 21,6%Business development 10 19,6%Mentoring 5 9,8%Finding customers 3 5,9%Total 51 100%
Confirms the other research done in this areaFunding is a concern for 22 start-ups, equals 78,6%
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Summary 1/2
Versatile incubator services are available for start-upsHand-holders (>9), network boosters (>4), seed capital providers(>70)
Services of Hand-holders were utilized largelyThe role of private actors was highly emphasizedWhy is this so?
Network boosters were not recognized as service providersYet, networking is one of the main concerns of start-upsWhy is this so?
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Summary 2/2
Government and private funding was equally and largelyexploited
Funding is still the main concernCriticism of governmental bureaucracyInvestors, venture capitalists are difficult to find
Finding customers was not seen as a problemWhy is this so?
It seems to be quite a laborious effort to find the existingincubators
Seven (7) new Hand-holders emerged during the interviewsBased on publicly available information distinction betweenincubators is arduous
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Thank You!
Contact: Dr Marjaana [email protected] Cyber Physical Solutions+358 (0)40 5321 637P.O. Box 1100 (Kaitoväylä 1)FIN-90571 Oulu, Finland