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Growing Helsinki’s Startup Ecosystem€¦ · • Most popular ecosystem report: 2017 = 200,000...
Transcript of Growing Helsinki’s Startup Ecosystem€¦ · • Most popular ecosystem report: 2017 = 200,000...
Growing Helsinki’s Startup Ecosystem
Dane StanglerJune 2017@danestangler
© 2017
Our Common Challenge (and Opportunity)
• “Software eating the world”• Technology penetrating more sectors• Fears over automation and unemployment
• Difficult transition for many regional economies
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To Manage Economic Transition, More Places Trying to Encourage Startups
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Yet the Rewards from Startup Creation and Growth are Concentrated
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Global Distribution of Ecosystem Value
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That Concentration Has Not Changed Much
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MORE VIBRANT STARTUP ECOSYSTEMS
What’s Needed
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Startup Genome Empowers Leaders and Builds Local Consensus to Catalyze Action for the Ecosystem
Our Mission: Fuel measurable economic growth by spreading the global startup revolution in cities and countries all over the world
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Data + Knowledge + Credibility
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• World’s largest primary research
from the Voice of Entrepreneurs
• 10,000+ founders
• Two largest global startup
databases plus data from 100 local
organizations
Largest Knowledge Base
• Reports quoted in 100+
publications including FT, WSJ,
Forbes, The Economist
• Most popular ecosystem report:
2017 = 200,000 global views in 2
months
Global Recognition
and Credibility
• 55 cities/28 countries
• 9 factors, 24 sub-factors, 100+
metrics
• First Startup Ecosystem Lifecycle
Model of evolution
• Built by experienced startup
leaders, starting with Steve Blank
Data-Driven &
Comprehensive Methodology
LIFECYCLE AND PERFORMANCE
Our Approach
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Startup Genome: Evidence-Based Policy Engine Based on Primary Research from the Voice of Entrepreneurs
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4) ACT on Specific Levers Proven to Solve Gaps=> Achieve Economic Impact
2) CLARITY on Gapsfrom Scientific Evidence=> Build Consensus for Action
1) FOCUS on the Right Issues at the Right Time=> Maximize Impact
3) STRATEGIZE by Leveraging Local Strengths that MatchAttractive Innovation Sectors=> Accelerate Growth Strategic Budget
Allocations
Lifecycle Evolution
Success Factors
Economic Strengths
Policy Action
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Ecosystem Lifecycle Model
• ICT sector truly subject to global competition
• Most economic impact produced by large scale-ups
• Economic performance increases with ecosystem size
• Large size cannot be achieved with local resources only
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Activation Globalization Expansion Integration
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Helsinki Has Activated Local Resources and Reached Globalization Phase
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Activation Globalization Expansion Integration
Helsinki
Runner-up for Global Top 20
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Size Matters: Increasing Returns in Ecosystem Performance
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Global Median
Helsinki
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Triggers Explain Non-Linearity in Growth
• Size grows non-linearly due to impressively large scale-ups
• These ”Trigger” National and Global Resource Attraction
• Large scale-ups and competition for resources are central to creating economic impact
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Activation Globalization Expansion Integration
$100MExits
$BExits
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To Grow Larger and Faster, Ecosystems Must Move from Organic to Inorganic Resources
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Activation Globalization Expansion Integration
National Startup Attraction Global Startup Attraction
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Success Factors Model: Model of Ecosystem Assessment based on Global Voice of Entrepreneurs
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Founder
Talent
Organizations
Funding
Startup Experience
Resource Attraction
Team Local Ecosystem
RESOURCES NETWORKS(Knowledge Flow)
Local Connectedness
GlobalConnectedness
PERFORMANCE
StartupOutput
Global Market Reach
EcosystemValue
Econ
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Impa
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Exits / Triggers
Local Context
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Global Know-How Fuels the Creation of Startups with Global Potential, Scale-ups and Exits
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Global Market Reach
Exits(Scale-Ups)
Econ
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Impa
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StartupOutputFounder
Talent
Funding
Organizations
Startup Experience
Resource Attraction
Local Connectedness
GlobalConnectedness
$1B Exit = Global Attraction
GlobalSystem
Resource Recycling & Experience
GlobalKnow-How
Globally-Leading Startups
Team Local Ecosystem
RESOURCES NETWORKS(Knowledge Flow)
PERFORMANCE
Billion-Dollar Exits & Unicorns “Trigger” Global Resource Attraction, further fueling Global Relationships and Know-How
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Policies Affect Ecosystem Resources and Connectedness
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Founder
Talent
Organizations
Funding Local Connectedness
GlobalConnectedness
Local Context
StartupExperience
Resource Attraction
Policy
• Laws (e.g. immigration and funding to organizations, programs, and institutions can impact all of these factors.
• Total Budget is key: you cannot move up the ranking without investing more than others.
• Governance structure is important to be efficient—no waste, duplication, lack of coordination.
• Allocations according to priority issues and strategy increase the impact.
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Phase Brings Focus Onto Right Issues at Right Time è Drive Action
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Activation• Build Connected Community
• Grow the number of startups
• Generate 100M+ exits
Globalization• Develop Global Network
• Inject Global Know-How
• Generate $B Exits
Expansion
• Fill Remaining Resource Gaps
• Expand Resources
• Integrate globally
Integration• Integrate ecosystem with local
economy, laws and institutions• Promote diversity locally
INCREASE STARTUP OUTPUT;GENERATE TRIGGERS (EXITS)
Priorities for Helsinki
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Helsinki Has Divergence Between Density and Output
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Activation Globalization Expansion Integration
Density Output
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Despite Small Size, Helsinki Has Considerable Room to Grow Larger Startup Ecosystem
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Increasing Size and Growing Faster Will Require Focus and Action on Key Areas
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Founder
Talent
Organizations
Funding
Startup Experience
Resource Attraction
Team Local Ecosystem
RESOURCES NETWORKS(Knowledge Flow)
Local Connectedness
GlobalConnectedness
PERFORMANCE
StartupOutput
Global Market Reach
EcosystemValue
Econ
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Impa
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Exits / Triggers
Local Context
STRONG INDICATORS, ROOM FOR GROWTH
Early-Stage Funding
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Helsinki Has Strong Funding Base—Needs to Expand and Attract More Foreign VC
• High-level of early-stage funding per startup• Growth of early-stage funding is slower than global median
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Seed Funding Rounds Led by Local Investors
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• High percentage of seed rounds led by local investors
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Helsinki Compares Well to Global Median with Experienced VCs—Needs More to Grow Larger and Faster
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HELSINKI HAS STRONG GLOBAL PLATFORM
Global Connectedness à Resource Attraction
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Helsinki Fairly Close to Core of Global Connectedness
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High Global Connectedness Has Helped Helsinki Startups Reach Global Markets
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# Connections to Top Ecosystems
Helsinki
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Definitely Helped by Events Such as Slush
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Connections Made Locally with Startup Leaders in Top Ecosystems
Global Median
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But Helsinki’s Global Connectedness Not (Yet) Leading to Higher Resource Attraction
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Activation Globalization Expansion Integration
National Startup Attraction Global Startup Attraction
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Helsinki Needs to Attract More Entrepreneurs …
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Global Entrepreneur Attraction # National Entrepreneur Attraction #
Global Median
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… And More Startups from Elsewhere
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Jerusalem
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Global Startup Attraction # National Startup Attraction #
Global Median
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Related to Low Number of Exits, which Trigger More Resource Attraction, Leading to Greater Startup Experience and Know-How
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Global Market Reach
Exits(Scale-Ups)
Econ
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Impa
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StartupOutputFounder
Talent
Funding
Organizations
Startup Experience
Resource Attraction
Local Connectedness
GlobalConnectedness
$1B Exit = Global Attraction
GlobalSystem
Resource Recycling & Experience
GlobalKnow-How
Globally-Leading Startups
Team Local Ecosystem
RESOURCES NETWORKS(Knowledge Flow)
PERFORMANCE
Billion-Dollar Exits & Unicorns “Trigger” Global Resource Attraction, further fueling Global Relationships and Know-How
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Helsinki Founders Have Know-How and Ambition, but There are Talent Gaps that Resource Attraction Can Help Fill
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Founders with Prior Hypergrowth Experience and Prior Experience as Startup Employee
Founder Hypergrowth Experience Founder 2 Years Experience
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Add to This a Worrying Level of Potential Leakage: Helsinki at Inflection Point on Resource Attraction
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Share of Startups Indicating Intent to Leave Ecosystem
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One Way is for Helsinki to Attract More Immigrant Founders
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To Increase Startup Output, Helsinki Can Also Expand Participation in Startup Ecosystem
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Percentage of Founders that are Women
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Accelerating the Growth of Helsinki’s Startup Ecosystem Will Require Focus and Action
• Top Priorities:o Double Startup Output
o Generate more Triggers—Large Exits
• Increase Early-Stage Funding– More Foreign VCs
• Build on Global Connectedness to Increase Resource Attraction– Encourage Recycling of
People and Money• Expand participation
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Thank you! Join our mission!
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JF GauthierCEO
Dane StanglerHead of Policy
+1 (913) [email protected]@danestangler