ermis research & incubator center 7th international venture capital forum athens 28-29/6/2006...

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ERMIS Research & Incubato r Center 7th Internation al Venture Capital Forum Athens 28- 29/6/2006 Business Incubators Business Incubators in Cyprus in Cyprus Dr Alexandros Michaelides General Director ERMIS Research & Incubator Center

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Page 1: ERMIS Research & Incubator Center 7th International Venture Capital Forum Athens 28-29/6/2006 Business Incubators in Cyprus Dr Alexandros Michaelides General

ERMISResearch

&Incubator

Center

7thInternational

VentureCapitalForumAthens

28-29/6/2006

Business IncubatorsBusiness Incubatorsin Cyprusin Cyprus

Dr Alexandros Michaelides

General Director

ERMIS Research & Incubator Center

Page 2: ERMIS Research & Incubator Center 7th International Venture Capital Forum Athens 28-29/6/2006 Business Incubators in Cyprus Dr Alexandros Michaelides General

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

Page 3: ERMIS Research & Incubator Center 7th International Venture Capital Forum Athens 28-29/6/2006 Business Incubators in Cyprus Dr Alexandros Michaelides General

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ERMISResearch

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7thInternational

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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

Page 4: ERMIS Research & Incubator Center 7th International Venture Capital Forum Athens 28-29/6/2006 Business Incubators in Cyprus Dr Alexandros Michaelides General

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7thInternational

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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

Page 5: ERMIS Research & Incubator Center 7th International Venture Capital Forum Athens 28-29/6/2006 Business Incubators in Cyprus Dr Alexandros Michaelides General

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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

Page 6: ERMIS Research & Incubator Center 7th International Venture Capital Forum Athens 28-29/6/2006 Business Incubators in Cyprus Dr Alexandros Michaelides General

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ERMISResearch

&Incubator

Center

7thInternational

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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%

Page 7: ERMIS Research & Incubator Center 7th International Venture Capital Forum Athens 28-29/6/2006 Business Incubators in Cyprus Dr Alexandros Michaelides General

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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

Page 8: ERMIS Research & Incubator Center 7th International Venture Capital Forum Athens 28-29/6/2006 Business Incubators in Cyprus Dr Alexandros Michaelides General

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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

Page 9: ERMIS Research & Incubator Center 7th International Venture Capital Forum Athens 28-29/6/2006 Business Incubators in Cyprus Dr Alexandros Michaelides General

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ERMISResearch

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7thInternational

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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

Page 10: ERMIS Research & Incubator Center 7th International Venture Capital Forum Athens 28-29/6/2006 Business Incubators in Cyprus Dr Alexandros Michaelides General

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&Incubator

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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

Page 11: ERMIS Research & Incubator Center 7th International Venture Capital Forum Athens 28-29/6/2006 Business Incubators in Cyprus Dr Alexandros Michaelides General

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ERMISResearch

&Incubator

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7thInternational

VentureCapitalForumAthens

28-29/6/2006

Results (2003-2006)

• Applications 32– Approvals 21 (66%)– Rejections 7– Pending 4

• Graduations 2

Page 12: ERMIS Research & Incubator Center 7th International Venture Capital Forum Athens 28-29/6/2006 Business Incubators in Cyprus Dr Alexandros Michaelides General

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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

Page 13: ERMIS Research & Incubator Center 7th International Venture Capital Forum Athens 28-29/6/2006 Business Incubators in Cyprus Dr Alexandros Michaelides General

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The future

• New Business Incubator programme (2006)

• Business Incubator Accreditation (;)

• Utilization of Structural Funds

Page 14: ERMIS Research & Incubator Center 7th International Venture Capital Forum Athens 28-29/6/2006 Business Incubators in Cyprus Dr Alexandros Michaelides General

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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

Page 15: ERMIS Research & Incubator Center 7th International Venture Capital Forum Athens 28-29/6/2006 Business Incubators in Cyprus Dr Alexandros Michaelides General

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Center

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28-29/6/2006

Business Incubator26 Offices 32 m2, Management Offices, Reception, Library, Meeting and Presentation Rooms, Bank, Canteen, Gym

Page 16: ERMIS Research & Incubator Center 7th International Venture Capital Forum Athens 28-29/6/2006 Business Incubators in Cyprus Dr Alexandros Michaelides General

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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

Page 17: ERMIS Research & Incubator Center 7th International Venture Capital Forum Athens 28-29/6/2006 Business Incubators in Cyprus Dr Alexandros Michaelides General

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Center

7thInternational

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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

Page 18: ERMIS Research & Incubator Center 7th International Venture Capital Forum Athens 28-29/6/2006 Business Incubators in Cyprus Dr Alexandros Michaelides General

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]