3
AGENDA
Introduction
The Macro Story
The Micro Story
The HuffPost Story
Closing Thoughts
INTRODUCTION THE MACRO STORY THE MICRO STORY CLOSING THOUGHTSTHE HUFFPOST STORY
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What makes the difference between entrepreneurial success and failure?Ability to Scale, Cultural Perceptions, Influx of Different Mindset/Foreign Talen
INTRODUCTIONINTRODUCTION THE MACRO STORY THE MICRO STORY CLOSING THOUGHTSTHE HUFFPOST STORY
Which forces contribute to higher productivity?Business Culture, Government Policy, Collaboration, Talent Pools
How can Denmark catalyze the same kind of entrepreneurial activity?Better understand entrepreneurs’ needs, change cultural perception of entrepreneurs, encourage collaboration
How is HuffPost changing the traditional media landscape?HuffPost being disruptive in media industry
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The Macro Story
$0
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
GDP Per Capita (1980 - 2011) in USD 1
DenmarkCAGR: 5.48%
United StatesCAGR: 4.86%
United KingdomCAGR: 5.07%
IsraelCAGR: 6.07%
1 Source: World Bank
Denmark’s GDP growth
is strong compared to
three economies where
entrepreneurs are likely
to start new businesses:
US, UK, and Israel
INTRODUCTION THE MACRO STORY THE MICRO STORY CLOSING THOUGHTSTHE HUFFPOST STORY
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GDP growth is only a snapshot of how Denmark is performing today.
The “new economy” of Denmark will be shaped by these factors:
INTRODUCTION THE MACRO STORY THE MICRO STORY CLOSING THOUGHTSTHE HUFFPOST STORY
The Macro Story
1. Entrepreneurial Activity
2. High Tech Contribution to GDP
3. Government Contribution to
Private R&D
7
Entrepreneurial Activity
While new businesses
have significantly
contributed to growth in
other economies,
only 5% of Denmark’s
adult population is
involved in early-stage
entrepreneurial activity, as
opposed to 13% in the US.
% of Early Stage Entrepreneurial Activity Amongst Adult Population 2
INTRODUCTION THE MACRO STORY THE MICRO STORY CLOSING THOUGHTSTHE HUFFPOST STORY
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 20120%
2%
4%
6%
8%
10%
12%
14%
US UK Israel Denmark
Denmark2012: 5.40%
United States2012: 12.8%
United Kingdom2012: 9.00%
Israel2012: 6.50%
2 Source: GEM Consortium
The Macro Story
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Contribution of High Tech Sector to Total Exports (2009) 3
0.6%
1.6%
2.0%
3.3%
High Tech Contribution to GDP
In Denmark, the high tech sector contributes to 0.6% of all
exports, despite the fact that Denmark is the 6th most high tech
R&D intensive country in the world. 4
INTRODUCTION THE MACRO STORY THE MICRO STORY CLOSING THOUGHTSTHE HUFFPOST STORY
Denmark
Israel
UK
US
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
3 Source: OECD4 Source: Bloomberg
The Macro Story
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Composition of Domestic Enterprise R&D Expenditures (2009) 5
US
UK
Israel
Denmark
0%
10
%
20
%
30
%
40
%
50
%
60
%
70
%
80
%
90
%
10
0%
Government Investment in R&D
Denmark invests relatively less in private sector R&D.
The US and UK governments have heavily invested in private
enterprise R&D. Israel’s investment is still relatively higher, but it
reached a peak of 11% during the 1990s.
2.58%
4.67%
14.01%
7.89%
Source: OECD Public Funding Private Funding
INTRODUCTION THE MACRO STORY THE MICRO STORY CLOSING THOUGHTSTHE HUFFPOST STORY
5 Source: OECD
The Macro Story
Building the worlds leading teen story telling platform
• Social network to connect, collaborate & share
• Tools to develop stories (words, video & images)
• Competitions based on current trends (fan fic)
SERVICE
BUSINESS• Commercial story rights -
books, games & film• Premium services for users• Educational services
PROGRESS2011 (Dec):
•10K users•5K “Movellas”•277K reads•100% web
2012 (Dec):•70K users•40K “Movellas”•2.6M reads•75% mobile
2014 (outlook): •1M users•90% mobile•$100M
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How can Denmark position itself to remain competitive
in the future by catalyzing new business growth in
other sectors today?
INTRODUCTION THE MACRO STORY THE MICRO STORY CLOSING THOUGHTSTHE HUFFPOST STORY
Clusters of Innovation
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The United States, UK, and Israel have seen substantial success in cultivating clusters of
innovation.
INTRODUCTION THE MACRO STORY THE MICRO STORY CLOSING THOUGHTSTHE HUFFPOST STORY
Clusters of Innovation
United States: Silicon Valley Considered to be the most well-developed start-up ecosystem in the world, with over 25 startups that are valued at greater than $1 billion. The Silicon Valley ecosystem – with its high concentration of universities, venture funding, talent, and entrepreneurial talent – increase the likelihood of successful startups
United Kingdom: Silicon RoundaboutUK’s high tech presence surged after the 2008 recession due to efforts by the government to actively accelerate the formation of companies in the area. The Silicon Roundabout has a high concentration of companies in communications and digital media.
Israel: Silicon WadiIsrael is an excellent startup ecosystem due to a healthy funnel of startups across the developmental lifecycle, a developed funding ecosystem, a strong entrepreneurial culture, and a strong supply of talent.
13
US
UK
Israel
Talent Policy Collaboration Culture
Denmark
INTRODUCTION THE MACRO STORY THE MICRO STORY CLOSING THOUGHTSTHE HUFFPOST STORY
Weak Moderate Strong
In recent years, Israel has systematically created the right environment for innovation
Clusters of Innovation
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Case Study: Israel
Israel’s incubator program brings public, private, and academic institutions together with entrepreneurs.
1
Entrepreneur has an idea and
applies to an incubator, based
on the sector of the proposed
business.
2
Entrepreneur gets
training from industry experts
and venture capital fund
managers.
3
Entrepreneur pitches idea to
government and to fund
managers.
4
Israel’s government
contributes up to $600,000
USD. Rest of funding comes
from VC.
INTRODUCTION THE MACRO STORY THE MICRO STORY CLOSING THOUGHTSTHE HUFFPOST STORY
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Case Study: Israel
Licensing
Universities from which ideas come can earn
royalties on the business once it
generates revenue
Privatized
System was privatized after 10 years, to
ensure that growth is organic and profit-
oriented
Profit Driven
Seed funding from non-government entities keeps the focus on
profits
INTRODUCTION THE MACRO STORY THE MICRO STORY CLOSING THOUGHTSTHE HUFFPOST STORY
Israel’s system is inherently profit-driven rather than developmental, translating to productivity.
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Policy
% of GDP Spent on R&D (2010) 7
Israel 4.46%
United States 2.90%
United Kingdom
1.86%
Denmark 3.06%
Culture
Every 18 year old in Israel must
join the Israeli Defense Force, a
tradition that builds business
acumen and business
relationships amongst young
adults.
INTRODUCTION THE MACRO STORY THE MICRO STORY CLOSING THOUGHTSTHE HUFFPOST STORY
Nicknamed “Start Up Nation”, Israel’s innovation policies and culture are conducive to entrepreneurship.
Israel is the world’s top-
spending country on research
and development.
7 Source: World Bank
Case Study: Israel
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The Micro Story
Entrepreneurs have a means-oriented mindset while executives have a goal-oriented mindset.
Manager/Executive sees means and figures out whether they can achieve or define a specific goal.
Entrepreneur sees goal and wonders how he can reconfigure the means.
Culturally, the Danish are more attuned to the Manager/Executive mindset, because of a fear of failure that continues to inhibit citizens from wanting to start a business.
INTRODUCTION THE MACRO STORY THE MICRO STORY CLOSING THOUGHTSTHE HUFFPOST STORY
Goal Oriented
Means Oriented
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INTRODUCTION THE MACRO STORY THE HUFFPOST STORY CLOSING THOUGHTSTHE MICRO STORY
Historically, US has had the fewest proportion of adults discouraged to start a business due to fear of failure – Danish entrepreneurs could potentially learn to be less risk averse
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 20120%5%
10%15%20%25%30%35%40%45%50% Den
mark
Israel
US
UK
Percent of adults who perceive entrepreneurship opportunities but cite fear of failure would prevent them
from starting a business
Source: GEM Consortium
The Micro Story
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INTRODUCTION THE MACRO STORY THE HUFFPOST STORY CLOSING THOUGHTSTHE MICRO STORY
9 Source: United States Bureau of Labor Statistics10 Source: Kauffman Foundation
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
11%
0.00%
0.05%
0.10%
0.15%
0.20%
0.25%
0.30%
0.35%
0.40%
Unemployment Rate Entrepreneurship Rate
Entrepreneurship and Unemployment Rates in the US (1996 – 2009)
Recessions can make people less risk averse and catalyze entrepreneurship
In the United States, the unemployment rate increased significantly after the 2008 financial crisis – but so did the rate that people founded new businesses
9 10
The Micro Story
Source: PCGA
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INTRODUCTION THE MACRO STORY THE HUFFPOST STORY CLOSING THOUGHTSTHE MICRO STORY
Entrepreneurs are distinct from small business owners in that, from the very beginning, they intend for their businesses to scale
SA
LES
(D
EM
AN
D)
TIME
DIS
CO
VER
Y
VA
LID
ATIO
N
EFFIC
IEN
CY
SC
ALE
DISCOVERY – Idea is born and tested.
VALIDATION – Idea is spread to potential customers.
SCALE – Aggressive growth of idea and company
EFFICIENCY – Business model refined and tested.
In DenmarkDenmark’s present income tax structure may discourage entrepreneurs and investors.9
Danish entrepreneurs currently wait too long to merge or be acquired, but this is often needed in order to scale their businesses.10
11 Source: The Economist12 Source: Danish Business Authority
The Micro Story
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The Huffington Post Story
HuffPost combines an award-winning newsroom with coverage across a broad
variety of content
INTRODUCTION THE MACRO STORY THE MICRO STORY CLOSING THOUGHTSTHE HUFFPOST STORY
LIFESTYLE
ENTERTAINMENT
NEWS & BUSINESS
TECH & INNOVATION
+ 500 editors and reporters+ 50k bloggers
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The Huffington Post Story
The Huffington Post is a global, cross-platform experience reaching more than 71M
users
INTRODUCTION THE MACRO STORY THE MICRO STORY CLOSING THOUGHTSTHE HUFFPOST STORY
CORE SITE LIVE STREAMING VIDEO MOBILE
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The Huffington PostINTRODUCTION THE MACRO STORY THE MICRO STORY CLOSING THOUGHTSTHE HUFFPOST STORY
58 SECA NEW PIECE OF CONTENT IS
PUBLISHED GLOBALLY
1600+STORIES EACH DAY
EVERY
500REPORTERS AND
EDITORS
CONTENT + CONVERSATION
The sheer scale of our operation drives impact by connecting editorial to the social landscape in real-time
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The Huffington Post
The Huffington Post’s digitally native culture has driven its exponential growth
INTRODUCTION THE MACRO STORY THE MICRO STORY CLOSING THOUGHTSTHE HUFFPOST STORY
Digitally Native Culture
• No print history – no legacy ways of thinking
• “Winning the internet” is the mantra – the goal is to be everywhere
• Editorial and Tech co-create new products and innovations
• Social media at the heart of every HuffPost employee
• Data-driven culture at every level
HuffPost Unique Visitors
Mon
thly
Vis
itors
(G
lob
al)
2007 2009 2011 20132005
0 MM
50 MM
100 MM
Source: Google Analytics
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What Denmark Can LearnINTRODUCTION THE MACRO STORY THE MICRO STORY CLOSING THOUGHTSTHE HUFFPOST STORY
Strengths
1. Human Capital – create a
pipeline for entrepreneurial
talent, and bring in more foreign
talent
2. Incubators – learn from the
experience of incubators in US,
UK, and Israel to build more
robust, scalable businesses
Opportunities
1. Corporate Tax System – evaluate
income and capital gains taxes to
encourage more investors
2. Entrepreneurial culture – cultivate a
culture of higher risk tolerance and
willingness to experiment
3. More R&D investment – increase
domestic R&D investments
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What Denmark Can LearnINTRODUCTION THE MACRO STORY THE MICRO STORY CLOSING THOUGHTSTHE HUFFPOST STORY
Lower Income Tax
Lower Capital
Gains Tax
Import Talent
Cross-sector
Collaboration
Increase R&D
Investments
Optimize Incubators
Promote risk-seeking,
entrepreneurial culture
+ + + +
Short term
Long term
+Promote private sector
funding
Talent pipeline from
universities to startups
++