closing presentation - nicholas davis

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Building momentum and fostering innovation-driven entrepreneurship in Europe

Nicholas Davis

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Valerie CaseyFounder and

Executive Director, The Designers

Accord, USA

Discussions in Davos indicate serious, high-level support for fostering scalable, innovation-driven entrepreneurship

Rajeeb DeyChief Executive Officer,

Enternships.com, United Kingdom

Neelie KroesVice-President and Commissioner

for the Digital Agenda, European Commission, Brussels

Antony JenkinsGroup Chief Executive,

Barclays, United Kingdom

Clayton ChristensenProfessor of Business

Administration, Harvard Graduate School of Busi-ness Administration, USA

Jyrki KatainenPrime Minister of

Finland

Toomas Hendrik IlvesPresident of Estonia

Karl-Ludwig KleyChairman of the

Executive Board,Merck, Germany

Alexander LjungCo-Founder and Chief Executive

Officer, SoundCloud, Germany

Overview on speakers and topics of project session in Davos

Source: Project team

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Making sense of fragmented approaches and myriad ideas is helped by a lifecycle model of entrepreneurship


A lifecycle model of entrepreneurship

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A survey of 1200 entrepreneurs indicates significant regional differences in how difficult each phase is


Perception of conditions per lifecycle phase and region (% of somewhat favorable or very favorable answers) Scale upStart upStand up

Southern Europe

Central and Eastern Europe

Western Europe

Northern Europe

Germany, Austria, Switzerland

Stand up

Start upScale up

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Overall conditions are perceived best for the stand up phase, and most critically for the scale up phase

21 2013

31 31

28

15 18

20

20 2226

11 9 11

53 5141

Scale up

2

Start up

1

Stand up

1


Perception of conditions per phase of the entrepreneurial lifecycle (%)

Very favorable

Somewhatfavorable

Neutral

Somewhatunfavorable

Very unfavorableNo opinion

Scale upStart upStand up

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These differences may be influenced by regional differences in sources of funds for entrepreneurs

Source: EVCA; Project team

18 18 2331 36 40

105

24 77

30

28

15

31

248

25

6

7

11

9

15

10

23

7

13

13

16 518

13

4464

Benelux and France

UK and Ireland CEE

13

Southern Europe

13

3

1 31

DACH

3

1

3 23

NE

1

Fund of funds and other asset managers

Sovereing wealth funds

Government agencies

Corporate investors

Pension fundsInsurance companies

Capital markets

Family offices and private individualsBanks

Academic institutions, endowments and foundations

Scale upStart up

Sources of funds – European venture funds by region (% of total incremental fundraising 2007-2012)

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Idea/projectInnovationFunnel

The sweet spot for scaling in Europe seems to be around more and better collaboration between large and small10 Levers and challenges to improve collaboration

Entrepreneurperspective

1. The partner could also be an intermediarySource: Project team

Assess needs and capability gaps, define search fields Clear definition of objectives to collaborate, leadership support

Large corporateperspective

1

CorporateStrategy

2Prepare organization to collaborateOpenness across the organization to collaborate, clear alignments of tasks and benefit 3

4

Identify long-list of potential partnersTransparency on available partners

Develop clear USP and brand to attract high potential partnersProvide transparency on needs, create attractive offering for partners

Negotiate and fix contract with partner1

Adaptability of processes

Operate and develop collaboration Develop and strengthen permanent win-win situation, link collaboration to business value

10

5Entrepreneur

Strategy

6

7

8

Assess needs and capacity to collaborateClear definition of objectivesto collaborate

Steer and monitor degree of opennessOpening up where appropriate; communicating proactively

Make systematic use of networks to attract partnersContinuous networking effort; systematic use of references for signalling

Scout potential partnersIdentify relevant large corporates and champion inside the company to support the project

9

Scale up

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Respondents see great potential in a network of initiatives and important potential in improved collaboration of actors

Partner: Potential to improve collaboration between entrepreneurs, universities, large companies and academic institutions within your country (%)

Connect: Importance of setting-up and developing a visible, inclusive network of public and private initiatives designed to support entrepreneurship across Europe (%)


59

30

712

89

1

Not very importantNot at all importantNo opinion Very importantSomewhat importantNeutral

35

44

10

6

80

3 1

Agenda to foster innovation-driven entrepreneurship: connect and develop

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There is strong willingness of entrepreneurs to support the ecosystem which needs to be translated into action

Improving access to tools and training on how to partnerbetween large businesses and entrepreneurial ventures 28

Creating more transparency about what new ventures andestablished businesses are looking for in term of potential partners 28

Creating more opportunities for entrepreneursand large businesses to network 45

Helping private investors "unlock" capital in Europeand direct it towards venture markets 28

Supporting entrepreneurs to access skilledemployees to join their ventures 32

Providing mentoring to new founders 54

Providing more opportunities for potential entrepreneurs toobtain practical experience in an innovative business or start-up 46

Tailoring the education curricula in schools and universitiesto focus on the skills that entrepreneurs require 50

Raising awareness of entrepreneurial success storiesthat potential entrepreneurs can relate to and be inspired by 53

Personally, in order to foster entrepreneurship I would be willing to engage in the following action this year (%)


Start up

Scale up

Stand up

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Share best practices among entrepreneurs, academic institutions and market leaders on how to collaborate

Experiment with and track emerging models of cooperation between large corporations and start-ups, creating success stories and spreading them in a “race to the top”

Partner

Three approaches can help build momentum and foster innovation-driven entrepreneurship

Develop a transparent, inclusive Europe-wide database and network of initiatives for entrepreneurship

Make corporate investors aware of the portfolios of Venture Capital investors and innovative companies therein

Encourage sharing of ideas and approaches across organisations promoting entrepreneurship

Connect

Ensure that the voice of entrepreneurs is heard by policy makers: showcase needs and opportunities.

Set explicit criteria for identifying momentum-building initiatives and promoting them in ways that increase the transparency of entrepreneurship-supporting activities across the region

Highlight less-known entrepreneurial success stories and peer-level role models

Focus

Overview


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