Nov 9th 2015 ENHANCING INVESTMENT READINESS IN ORDER TO UNLEASH SMES' AND MID-CAPS' GROWTH...
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Transcript of Nov 9th 2015 ENHANCING INVESTMENT READINESS IN ORDER TO UNLEASH SMES' AND MID-CAPS' GROWTH...
Nov 9th 2015
ENHANCING INVESTMENT READINESS IN ORDER TO UNLEASH
SMES' AND MID-CAPS' GROWTH POTENTIAL
Outline
Growth potential? What is investment readiness
about? What are the pitfalls? What can startups do? What can a startup incubator do?
Growth potential I – New paradigms
Growth potential I – New paradigms
Bits and atoms are coming together New paradigms will lead to a
reshuffling of assets and competencies within / between supply chains
SMEs can have a significant role… if they «pivot» Changing tack in their core business Spinning off non-core innovations Absorbing external innovations Entering new supply chains
Growth potential II – The world is big
Growth potential II – The world is big
You have to think in global terms The markets out there are big Your competition is operating
globally The exact assets you need might
not be close to home
… you need finance… bootstrapping?… debt from banks?… government grants?... or should it be equity?
Investment readiness
Investment readiness
It’s up to you… do you want a small cookie or a slice of a potentially very large cake?
Pitfalls Different mindset or lack of
knowledge? Not understanding investors’
objectives and business models (BA, VC, corporate, PE, stock market)
rules of the game, jargon and etiquette
Information asymmetries (both undesired and purposeful)
Building the future, but still clinging on the past
Sharing governance, management… and the ambiguous role of the family (shareholders? CEOs? operational managers?)
Wrong innovation strategy Not having one at all Using a wrong strategy
Pitfalls No plan at all, or an excessively detailed
plan Showing not enough growth, or an
unbelievable growth Not knowing the market and the industry
well enough Not enough «validations» for the funding
stage Unclear «use of funds» Weaknesses in the team Inability to «pitch» and communicate Inability to engage with objections Messing up the negotiation
… not understanding what «that» investor wants
What can startups do?
Provide technology, solutions & competencies with an innovative, cheap & flexible approach ( suppliers and investment and/or acquisition targets)
Create a (small) new market for you ( customers)
Teach you a new (lean) approach to innovation strategy
What can a startup incubator do?
Provide access to startups Host your spinoff Co-develop a corporate incubation
program
What is I3P? A joint stock non-profit-making consortium A consultancy and advisory company
serving Students, Researchers and Lecturers of
Politecnico di Torino and of Public Research centers
Anyone who wants to create a knowledge-based startup that can benefit from the services provided by I3P and from the Politecnico.
Companies that want to create spinoffs to exploit non-core projects
A publicly-owned firm, with an innovative business model, with a strong orientation to results and to the market
Recipient of the «Best Science-based Incubator award» in 2004
Ranked 5th in Europe and 15th in the world by the 2014 UBI (University Business Incubator) Report
What does I3P do?
Fundraising Equity fundraising with BAs, VCs,
corporate investors Debt fundraising with partner banks
Matchmaking between technology and business
competencies Integration of the founding team Recruitment of personnel
Consultancy Strategic consultancy (business
modeling and business planning) Specialist consultancy through
partner firms
Scouting Within Politecnico di Torino (spinoffs) and
outside (Italian and foreign startups, corporate spinoffs)
Events, competitions, hackatons, .... and lots of one-on-one meetings
Support to business development Trade fairs Tailor-made corporate events Development of sales networks Management of corporate
incubation programs
Support to investitors Advisory, board representation,
part-time management
I3P in figures
Out of business
Founded
Surviving(1 IPO)
Currently incubated Acquired
182
99
11
31
42
An annual deal flow made up of 300 applications, 90 business plans / MVPs, 15-20 new startups
Balanced across sectors (ICT/digital, cleantech, medtech, industrial) with strong synergies with Politecnico di Torino and the local industry
Seed-level fundraising amounts to 2.5 M€ per annum on average More than 1,400 jobs created, each of which has required a one-
off investment of 6 k€ in public funds Positive P&L, and financially sound