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Creating a virtual start-up ecosystem Democratizing incubation Stefanie Bauer, Associate Vice President Intellecap Business Consulting

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Page 1: Democratizing incubation - Harvard University · 40 . 60 . 10 . 30 . 50 . A Global Movement: The Boom of the StartUp Economy . StartUps with valuation of 1 Bn US$ or more . 1999

Creating a virtual start-up ecosystem

Democratizing incubation

… Stefanie Bauer, Associate Vice President Intellecap Business

Consulting

Page 2: Democratizing incubation - Harvard University · 40 . 60 . 10 . 30 . 50 . A Global Movement: The Boom of the StartUp Economy . StartUps with valuation of 1 Bn US$ or more . 1999

I welcome you to the

community who have decided that

… ”

“ suffice.

people of

easy will no longer

M. Rippetoe

Page 3: Democratizing incubation - Harvard University · 40 . 60 . 10 . 30 . 50 . A Global Movement: The Boom of the StartUp Economy . StartUps with valuation of 1 Bn US$ or more . 1999

The StartUp Economy:

An answer to ‘INCLUSIVE GROWTH’?

Page 4: Democratizing incubation - Harvard University · 40 . 60 . 10 . 30 . 50 . A Global Movement: The Boom of the StartUp Economy . StartUps with valuation of 1 Bn US$ or more . 1999

… 20

40

60

10

30

50

A Global Movement: The Boom of the StartUp Economy

StartUps with valuation of 1 Bn US$ or more

1999 2005 2010 2014 Source: Wallstreet Journal

2015

80 122

Page 5: Democratizing incubation - Harvard University · 40 . 60 . 10 . 30 . 50 . A Global Movement: The Boom of the StartUp Economy . StartUps with valuation of 1 Bn US$ or more . 1999

A Global Movement: Decentralization of StartUp Activities

Source: Compass Global StartUp Ecosystem Report 2015

1

5

13

9

17

2

6

14

10

18

3

7

15

11

19

5

8

16

12

20

Silicon Valley NY City Los Angeles Boston

Tel Aviv Chicago Seattle

Berlin Singapore Paris Sao Paolo

Moscow Austin Bangalore Syndey

London

Toronto Vancouver Amsterdam Montreal

Page 6: Democratizing incubation - Harvard University · 40 . 60 . 10 . 30 . 50 . A Global Movement: The Boom of the StartUp Economy . StartUps with valuation of 1 Bn US$ or more . 1999

Africa: The next startup frontier?

Source: The Next Africa 2015, Aubrey Hruby and Jake Bright

Kenya Silicon Savannah

100+ Tech incubators

in Africa

2012 2013 2014 2018

200

400

600

100

300

500

VC Funding in African Tech StartUps

Expected $ 608 mn in 2018

700

Page 7: Democratizing incubation - Harvard University · 40 . 60 . 10 . 30 . 50 . A Global Movement: The Boom of the StartUp Economy . StartUps with valuation of 1 Bn US$ or more . 1999

Why does it matter?

Page 8: Democratizing incubation - Harvard University · 40 . 60 . 10 . 30 . 50 . A Global Movement: The Boom of the StartUp Economy . StartUps with valuation of 1 Bn US$ or more . 1999

Economic MPOWERMENT

Page 9: Democratizing incubation - Harvard University · 40 . 60 . 10 . 30 . 50 . A Global Movement: The Boom of the StartUp Economy . StartUps with valuation of 1 Bn US$ or more . 1999

… PARTICIPATI

ON

Social

Page 10: Democratizing incubation - Harvard University · 40 . 60 . 10 . 30 . 50 . A Global Movement: The Boom of the StartUp Economy . StartUps with valuation of 1 Bn US$ or more . 1999

… INNOVATION

Social

Page 11: Democratizing incubation - Harvard University · 40 . 60 . 10 . 30 . 50 . A Global Movement: The Boom of the StartUp Economy . StartUps with valuation of 1 Bn US$ or more . 1999

… India – witnessing a startup revolution

India is the fastest growing start-up economy today

1st tech startups, 800+ starting annually

Largest ecosystem globally 3rd 3100

(Source: NASSCOM 2015; Thomson Reuters)

Under 36 years 76%

VC/ PE & and angel investment deals of over $ 4.9 bn between August 2014-2015 327

Page 12: Democratizing incubation - Harvard University · 40 . 60 . 10 . 30 . 50 . A Global Movement: The Boom of the StartUp Economy . StartUps with valuation of 1 Bn US$ or more . 1999

… INFORMATION

& Technology

Page 13: Democratizing incubation - Harvard University · 40 . 60 . 10 . 30 . 50 . A Global Movement: The Boom of the StartUp Economy . StartUps with valuation of 1 Bn US$ or more . 1999

Change

Passion to

Page 14: Democratizing incubation - Harvard University · 40 . 60 . 10 . 30 . 50 . A Global Movement: The Boom of the StartUp Economy . StartUps with valuation of 1 Bn US$ or more . 1999

INCUBATIO

N

Business support &

Page 15: Democratizing incubation - Harvard University · 40 . 60 . 10 . 30 . 50 . A Global Movement: The Boom of the StartUp Economy . StartUps with valuation of 1 Bn US$ or more . 1999

CAPITAL $4.9 bn

VC/angel deals between 2014-15

$1.6 bn in

impact investing

Page 16: Democratizing incubation - Harvard University · 40 . 60 . 10 . 30 . 50 . A Global Movement: The Boom of the StartUp Economy . StartUps with valuation of 1 Bn US$ or more . 1999

StartUp Economy

Page 17: Democratizing incubation - Harvard University · 40 . 60 . 10 . 30 . 50 . A Global Movement: The Boom of the StartUp Economy . StartUps with valuation of 1 Bn US$ or more . 1999

Of India’s enterprises are in tier 2 and 3 towns and

cities with very little or no access to support and

incubation

Of dry powder is sitting with angel and seed

investors in India

50% Many entrepreneurs are excluded from the current start-up ecosystem

$1 Bn

But…

Large amount of capital is available to “investment-ready” enterprises

Most entrepreneurship ecosystems are concentrated in

large cities making it difficult for entrepreneurs in other

parts to access support

Page 18: Democratizing incubation - Harvard University · 40 . 60 . 10 . 30 . 50 . A Global Movement: The Boom of the StartUp Economy . StartUps with valuation of 1 Bn US$ or more . 1999

Intellect Capital Networks

Entrepreneurs

Page 19: Democratizing incubation - Harvard University · 40 . 60 . 10 . 30 . 50 . A Global Movement: The Boom of the StartUp Economy . StartUps with valuation of 1 Bn US$ or more . 1999

Intellect

strategic advice and big ideas we nurture and scale innovations that

drive the entrepreneurial economy

Strategy Partnerships

Innovation

Page 20: Democratizing incubation - Harvard University · 40 . 60 . 10 . 30 . 50 . A Global Movement: The Boom of the StartUp Economy . StartUps with valuation of 1 Bn US$ or more . 1999

Capital

From $ 100 to $1 mn

US$ 200 under management

Page 21: Democratizing incubation - Harvard University · 40 . 60 . 10 . 30 . 50 . A Global Movement: The Boom of the StartUp Economy . StartUps with valuation of 1 Bn US$ or more . 1999

Networks

… Connected over 600 enterprises to investors

and funders, and built an engaged community of over 23,000

Page 22: Democratizing incubation - Harvard University · 40 . 60 . 10 . 30 . 50 . A Global Movement: The Boom of the StartUp Economy . StartUps with valuation of 1 Bn US$ or more . 1999

Reach Scale

Resources StartUp Ecosystem 2.0 is

needed

Key Challenges

Page 23: Democratizing incubation - Harvard University · 40 . 60 . 10 . 30 . 50 . A Global Movement: The Boom of the StartUp Economy . StartUps with valuation of 1 Bn US$ or more . 1999

VIRTUAL ECOSYEM

Bringing the physical world online

Page 24: Democratizing incubation - Harvard University · 40 . 60 . 10 . 30 . 50 . A Global Movement: The Boom of the StartUp Economy . StartUps with valuation of 1 Bn US$ or more . 1999

Every great idea needs a first step…

Page 25: Democratizing incubation - Harvard University · 40 . 60 . 10 . 30 . 50 . A Global Movement: The Boom of the StartUp Economy . StartUps with valuation of 1 Bn US$ or more . 1999

25

Business Idea

Raising Funding to Scale

Access to StartupWave incubation support or to

physical incubators

Access to ideation resources to develop business model

Access to online resources, connections to mentors and

feedback from peers

Access to co-working and maker spaces, corporate labs

and business service providers

Virtual/ Physical showcases to investors

Online and in-person support; from sector-specific experts

1

2

3

4

5

6

1 2 3

4 5 6

Pre-incubation Support

Incubation Support

Page 26: Democratizing incubation - Harvard University · 40 . 60 . 10 . 30 . 50 . A Global Movement: The Boom of the StartUp Economy . StartUps with valuation of 1 Bn US$ or more . 1999

15% women led enterprises

35 Incubator partners

400+ entrepreneurs

5 incubators in low income states

20% entrepreneurs from tier 2 and tier 3 cities

24 mentors

35% development sector focused enterprises

34 business support providers

IMPACTS

500+ new users every month

1000+ people reached via social media

70 seed and angel investors

25 Evaluation Committee Members

Page 27: Democratizing incubation - Harvard University · 40 . 60 . 10 . 30 . 50 . A Global Movement: The Boom of the StartUp Economy . StartUps with valuation of 1 Bn US$ or more . 1999

Our Vision: Go Africa, Go Global!

Page 28: Democratizing incubation - Harvard University · 40 . 60 . 10 . 30 . 50 . A Global Movement: The Boom of the StartUp Economy . StartUps with valuation of 1 Bn US$ or more . 1999
Page 29: Democratizing incubation - Harvard University · 40 . 60 . 10 . 30 . 50 . A Global Movement: The Boom of the StartUp Economy . StartUps with valuation of 1 Bn US$ or more . 1999

… JOIN US!