ermis research & incubator center 7th international venture capital forum athens 28-29/6/2006...
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ERMISResearch
&Incubator
Center
7thInternational
VentureCapitalForumAthens
28-29/6/2006
Business IncubatorsBusiness Incubatorsin Cyprusin Cyprus
Dr Alexandros Michaelides
General Director
ERMIS Research & Incubator Center
28 June 2006 Dr A. Michaelides - ERMIS 2
ERMISResearch
&Incubator
Center
7thInternational
VentureCapitalForumAthens
28-29/6/2006
Agenda
• Cyprus New Industrial Policy – Business Incubator Programme
• Business Incubators• Funding• Shareholding• Services• Procedure• Incubatees obligations• Results (2003-2006)• Problems• The future
28 June 2006 Dr A. Michaelides - ERMIS 3
ERMISResearch
&Incubator
Center
7thInternational
VentureCapitalForumAthens
28-29/6/2006
Cyprus New Industrial Policy• 2002• 12 Chapters• Strategic goals
– To attract and support the development of new high tech companies
– To restructure and support of the existing manufacturing companies
– To attract foreign investments (mainly on capital intensive activities)
• Business Incubators Programme (Ch. 1 - NIP)• International Call for Proposals (Nov. 2002)
– 10 applications– 4 consortia evaluated successfully– Feb. 2003 Contracts signed
28 June 2006 Dr A. Michaelides - ERMIS 4
ERMISResearch
&Incubator
Center
7thInternational
VentureCapitalForumAthens
28-29/6/2006
4 Approved Business Incubators
• ERMIS Research & Incubator Center– www.ermis.org
• Promitheas Business & Innovation Center – www.promitheas.com.cy
• HELIX Business Incubator– www.helixincubator.com
• Diogenes Business Incubator– www.diogenes.com.cy
28 June 2006 Dr A. Michaelides - ERMIS 5
ERMISResearch
&Incubator
Center
7thInternational
VentureCapitalForumAthens
28-29/6/2006
Funding
• Business Incubators– £19,000 annually (~€33,000) de minimis– Buildings and Equipment
• 7,5% Medium Enterprises• 15% Small Enterprises
• Incubatees– £120,000 ~ €207,600 National Funds– £10,000 ~ €17,300 Own Funds
• Maximum number of incubatees per incubator 15
28 June 2006 Dr A. Michaelides - ERMIS 6
ERMISResearch
&Incubator
Center
7thInternational
VentureCapitalForumAthens
28-29/6/2006
Shareholding
• Entrepreneur(s) >50%– ONLY individuals
• Other partners– Individuals and or Legal Entities
• No limitation for non Cypriots participation• Corporate tax in Cyprus 10% (lowest in EU)• The business incubator negotiates its
participation – usually ~20%
28 June 2006 Dr A. Michaelides - ERMIS 7
ERMISResearch
&Incubator
Center
7thInternational
VentureCapitalForumAthens
28-29/6/2006
Services• Management support • Fund raising support• Support for the participation in EU funded projects• Support for the implementation of the research plan (access to research
facilities)• Secretarial, accounting and legal support• Organisation of seminars on common business practice and according to
special incubatees’ needs • Networking, Partnering• Company registration• Reception - Call center • Office furniture. • Telephone, telefax, internet connection• Printing, scanning and photocopying facilities • Meeting and presentation rooms • Library • Audio-visual equipment • Security services • Central heating and air conditioning • Messengers' services• Parking
28 June 2006 Dr A. Michaelides - ERMIS 8
ERMISResearch
&Incubator
Center
7thInternational
VentureCapitalForumAthens
28-29/6/2006
Procedure• Presentation of the business idea• Submission of Business Plan / Application• Presentation of the business plan in front of the
Incubator’s Evaluation committee• Business plan modifications according to
evaluators’ comments• Submission of the final version of the business plan
to the Ministry of Commerce, Industry & Tourism• External evaluator• Presentation of the business plan in front of the
technical committee of the Incubators Scheme• Approval (with or without comments) / Rejection • Modifications/Improvements of the Business Plan
according to the evaluators comments
28 June 2006 Dr A. Michaelides - ERMIS 9
ERMISResearch
&Incubator
Center
7thInternational
VentureCapitalForumAthens
28-29/6/2006
Procedure (cont.)
• Preparation of 3-party contract (Ministry-Incubatee-Incubator)
• Establishment of a Cypriot limited company– ~ £300-400
• Signing of the contract by the company legal representative
• 1st Installment (according to the budget)• Signing of the incubator’s protocol• Start of company operations• 4-9 months
28 June 2006 Dr A. Michaelides - ERMIS 10
ERMISResearch
&Incubator
Center
7thInternational
VentureCapitalForumAthens
28-29/6/2006
Incubatee’s Obligations
• Duration of the contract up to 24 months
• Successful implementation of he business plan
• 12month progress and financial report
• 18month progress and financial report
• Final progress and financial report
• No “penalties” if the project is not successful
28 June 2006 Dr A. Michaelides - ERMIS 11
ERMISResearch
&Incubator
Center
7thInternational
VentureCapitalForumAthens
28-29/6/2006
Results (2003-2006)
• Applications 32– Approvals 21 (66%)– Rejections 7– Pending 4
• Graduations 2
28 June 2006 Dr A. Michaelides - ERMIS 12
ERMISResearch
&Incubator
Center
7thInternational
VentureCapitalForumAthens
28-29/6/2006
Problems
• The government approaches the business ideas as a “research project” rather than new company
• The external evaluator is always a member of the academic community
• Delays • Duplication of evaluation process
– Incubator’s evaluation – Ministry’s evaluation
• Incubatees are not allowed to participate in national funded research projects
• Limited research infrastructure in Cypus
28 June 2006 Dr A. Michaelides - ERMIS 13
ERMISResearch
&Incubator
Center
7thInternational
VentureCapitalForumAthens
28-29/6/2006
The future
• New Business Incubator programme (2006)
• Business Incubator Accreditation (;)
• Utilization of Structural Funds
28 June 2006 Dr A. Michaelides - ERMIS 14
ERMISResearch
&Incubator
Center
7thInternational
VentureCapitalForumAthens
28-29/6/2006
ERMIS
• RTD Talos
– www.talos-rtd.com
• Cyprus College
– www.cycollege.ac.cy
• Science & Technology park of
Crete
– www.stepc.gr
• Spidernet Services Public
– www.spidernet.net
28 June 2006 Dr A. Michaelides - ERMIS 15
ERMISResearch
&Incubator
Center
7thInternational
VentureCapitalForumAthens
28-29/6/2006
Business Incubator26 Offices 32 m2, Management Offices, Reception, Library, Meeting and Presentation Rooms, Bank, Canteen, Gym
28 June 2006 Dr A. Michaelides - ERMIS 16
ERMISResearch
&Incubator
Center
7thInternational
VentureCapitalForumAthens
28-29/6/2006
Incubatees • D.T. Diabetes Research Technologies Novel nutraceutical compounds that alleviate and prevent
diabetic complications
• Pythagoras EngineeringNew type of vertical multistage pump for difficult
applications of low discharge and high manometric head
• Atlantis Information Systems Technologies
Integral building control and energy management, telematic services routed via the Power Line Network
• MEDSONICHigh intensity focused ultrasound (HIFU) system, which is
guided with magnetic resonance imaging (MRI) in order to treat brain tumors
• AGENCOR Information SystemsGeneric alert system
28 June 2006 Dr A. Michaelides - ERMIS 17
ERMISResearch
&Incubator
Center
7thInternational
VentureCapitalForumAthens
28-29/6/2006
Incubatees (cont.)
• F.P. Fire Protect CarHigh Tech total solution Car fire protection
• Toy Robot SystemsStructural educational toys
• EMBIO DiagnosticsBiosencors for medical diagnostic systems
• DACTOLIVEOpto-electronical Identification Systems
using novel dactyloscopy technology
ERMISResearch
&Incubator
Center
7thInternational
VentureCapitalForumAthens
28-29/6/2006
Thank YouThank You ! !
Dr Alexandros MichaelidesGeneral Director
ERMIS Research & Incubator Centerwww.ermis.org
22559559 [email protected]