Surfing the Green Wave How Europe can build an ecosystem to turn our

carbon addiction into new business

Frans Nauta Global Clean Tech Finland

9 September 2015, Helsinki@fnauta

sanderijn cels jorrit de jong frans nauta

Agents of Change

strategy and tactics for social innovation

Surfing theGreen Wave

2008 2012 2016

Climate-KIC Accelerator

Data points

• Started in 2012

• 13 cities in CH, D, DK, F, H, I, NL, UK, PL, SP

• 164 teams entered accelerator 2014

• Circa 40% make it to Stage 3

• Portfolio has attracted > 100 M€ in funding

Talent &

Knowledge

Business Smart Money

Government Policy

Interaction

Talent &

Knowledge

Business Smart Money

Government Policy

Interaction

1891

1939

Fred Terman @ Stanford

Talent &

Knowledge

Business Smart Money

Government Policy

Interaction

1891 1941

1951

1939

Talent &

Knowledge

Business Smart Money

Government Policy

Interaction

1891 1941

1951

1939 1958

Talent &

Knowledge

Business Smart Money

Government Policy

Interaction

1891 1941

1951

1939 1958

1

5

4

3

2

Five ecosystem issues

• Lack of startup culture in academia

• Startup acquisition by corporations

• Government funding beyond paper

• EU Venture Capital

• Leadership issue

1

3

2

4

5

Slush EU for Clean Tech1

Less R&D subsidies2

years to market ➡

R&

D foc

us ➡

5 10 15 20

Corporations GovernmentR&D Time Horizon USA Corporations

1970

1980

19902000

years to market ➡

R&

D foc

us ➡

5 10 15 20

US Corporations Government

R&D Ecosystem USA

US Venture Capital

years to market ➡

R&

D foc

us ➡

5 10 15 20

EU Corporations Government

R&D Ecosystem EU

EU Venture Capital

Action funding3

Action funding3

Time for EARPA

• Funding for action

• Challenges model

• Bringing in the best & brightest

• And then kick them out again

➡ Revolving door policy

VC asset class

Bill

ion

$

0

1000

2000

3000

4000

5000

2009 2010 2011 2012 2013 2014

EU+IS North America Rest of World

Source: Clean Tech Groep, I3 database, 2014

4

Israel’s ‘Fincubator’

• Incubator combined with investment fund

• 100 k€ VC, 500 k€ government funding, 30%

• Tender process

• 23 Fincubators

- Market focus

- Regional spread

➡ Corporates are getting in on the action

Existential threat & vision = great things

• USA - 40ies R&D War

• Netherlands - 50ies Water management

• Israel - 50ies Defense

• USA - 60ies Moonshot

• Denmark - 70ies Wind power

• Germany - 80ies Green energy

5

Politicians are like VC’s

Summarized

• Slush for Clean Tech

• Less R&D subsidies

• Action funding - EARPA

• Fincubators

• Much better sales

1

3

2

4

5

Thank you for your attention

@fnauta